‘Welcome to the Frugal Future’
By Martin R. Baird

The headline for this column was the last sentence of a Forbes magazine article I recently read. I don’t know if I like the sound of it, but I do think it is reality.
 
This thing about a frugal future got me thinking about all the financial-services conferences I have attended and been honored to speak at. The harsh reality is that financial advisors need to get more out of these conferences. They need to have a darned good reason to be there. Advisors also need to get more out of their product providers, many of whom sponsor conferences. Advisors also need to hang on to as many clients as possible. With a more frugal future ahead of us, financial professionals will need all the help they can get to manage their practices and do a better job of taking care of their clients.
 
Back to conferences. The ones I have attended over the years ranged from small, intimate meetings with a very select few top producers to annual get-togethers with standing room only. The locations were all different, but many of the themes were the same: growth, the future, better service, more clients, past success, etc. These are all important themes and messages for financial-services companies to have both short and long term.
 
But why do people attend these sessions? What’s the real reason? Attendance is mandatory for some advisors. For others, it’s the opportunity to thaw out in a sunny, warm location while their part of the country is buried under four feet of show. Some advisors go to learn about new products. And a very small group of advisors actually go to learn things they can use to better serve their clients and grow their business. If Forbes is to be taken seriously, this tiny group is on the right track and its ranks need to become much, much bigger. In other words, have a solid reason to attend and walk away with useful information.
 
I remember all too well a conference I spoke at 15 years ago. A representative of the broker dealer that sponsored the conference was stressed and frustrated because the presenters were pushing products instead of sharing ideas or information on how advisors could grow their business. He and I talked later and he said that he had sent a number of memos threatening to turn the microphone off if the product pushing didn’t stop. Sadly, all these years later, I still see the same thing happening. If advisors need to have a good reason to attend conferences, sponsors should give them one. If advisors need helpful information, sponsors must make sure it is forthcoming. Everyone needs to walk away a winner.
 
Now don’t get me wrong. I can count them on one hand, but there are innovative leaders who provide real value at conferences. They have marketing, business-development and practice-management professionals share ideas and proven techniques and then invite attendees to their booths after the session to learn more. That works!
 
As financial professionals, you need to have a major mind shift when it comes to conferences. Conferences should be viewed as the best opportunity you have to learn and grow your business. They should be used to learn new techniques for building your client base, not just which fund has a lower beta.
If we are entering a frugal future, advisors need to expect more of and demand more from their product providers. Product providers must get out of the lunch-and-golf-balls routine and initiate innovative programs that will help you grow your business. Think for a moment. If the Dow is off 40 percent, most advisors’ book of business is off at least that much. Faced with this stark reality, what can your product providers do to help you today and in the future?
 
Ask product providers how you can do more together. No, I’m not suggesting you ask for a blank check for seminars or golf outings. They need to partner with you for mutual growth. For example, what can they do to help you with your marketing? Could their marketing department review your marketing plan to give you ideas on how to get more out of it?
 
Here is a freebie from me to you. Very few people know that the most heavily read part of a marketing mailer or sales letter is the headline. This has been heavily researched, so if you need your mailers to work harder for you, spend time reviewing and testing the headline. Many advisors have a throw-away headline that they drop in after they have written the text. That is a huge waste of an opportunity.
 
Finally, advisors need to take steps to retain their clients. Please note I didn’t say assets. When the market goes down, your level of assets could go down. But if you are measuring and managing what matters to your clients, they will stay with you and even make more referrals. In fact, I see what is happening in today’s financial markets as an amazing time to increase your level of referrals. The fear that is running rampant is causing people who are not firmly connected to their advisors to look for a change. That change can be you if you have been doing the right things.
Welcome to the new future. It could offer you some real opportunities.
 
Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a consulting company that helps financial professionals measure and manage the quality of client service and improvements to their internal operations to enhance business performance and increase revenues. He is a highly regarded speaker in the areas of marketing and client retention and development. Baird is author of “The 7 Deadly Sins of Advisor Marketing,” a book that offers easy-to-implement marketing ideas for financial professionals. He may be reached at 206-774-8856 or mbaird@raresults.com.