Advisors who want to think deeper about how to grow should look outside the industry for inspiration.
Wealth management is not the only industry that runs on a recurring revenue model — far from it. Most of the industries we should look to for inspiration are software-based. And are top companies such as Netflix or Salesforce.
While advisors don't operate in the same space as SaaS companies, the common thread is that these software solutions are focused on continually improving their customer experience.
Similarly, advisors have to maintain an intentional focus on the client experience they create in their firms if they want to accelerate growth in the right way.
There are four steps to accelerating growth, and they have to be worked through in a linear fashion:
1. Enhancing the Client Experience
When you enhance your client experience (CX), the longer clients will stay with you or refer friends and family. As I've said often, maximizing referrals is the key to accelerating firm growth.
Improving CX is the absolute best way to grow your firm. McKinsey research found that a brand that improved its client experience increased revenues by up to 15% and lowered costs by up to 20%.