Blog – How To Sell New Clients Using Data To Tell A Different Story

Historically, the financial industry has placed tremendous emphasis on advisors’ abilities to outperform their peers and the market. In the United States especially, where there is a strong cultural focus on winning, performance has been the predominant factor investors have relied on to evaluate prospective financial advisors.

Market performance data is straightforward, unbiased, and easy to assess. It is not, however, necessarily the most reliable predictor of future success. It is also not relevant to the present-day goals and needs of investors. As the financial market evolves, advisors are finding more effective ways of leveraging data to attract new investors.

Why Traditional Advising Doesn’t Resonate Today

Traditionally, advisors court investors by showcasing their achievements. They often sound very alike, highlighting their histories of beating benchmarks in the market. While investors may appreciate advisors’ past successes, their previous achievements and performance against market indicators do not relate tangibly to clients’ present-day goals.

The relationship today’s investors are seeking with advisors has nothing to do with past wins and losses. More and more, clients prefer to focus on the experience they will have when partnering with an advisor to steward their wealth. Clients are far more responsive to illustrations of their own progress toward their specific goals than to data on how an advisor has outperformed the market.

A New Approach to Connecting with Clients

When investors search for an advisor to steward their wealth, they are looking for someone to whom they can confidently entrust the fruits of years of work. In this context, conversations about lag measures of wins and losses are ineffective in persuading new or prospective clients that an advisor has what it takes to adeptly manage their particular investments.

The best way for advisors to connect with new clients and demonstrate their wealth management expertise is to present a report that meets two key requirements:

  1. Focus on the prospective client’s individual goals and milestones
  2. Focus on terms that are both familiar and relevant to the investor

The personalization of goals-based analysis is more effective for winning new clients than performance measurement because it illustrates progress toward their goals. By offering investors a plan that speaks directly to their needs and financial objectives, advisors prove that they understand their clients, which helps to put them at ease. Advisors who can put investors at ease increase their chances of winning their trust and by extension, their business.

Tools for Goals-Based Reporting

To leverage investment data in a timely way that demonstrates trustworthiness and commitment to client goals, advisors must be able to quickly generate clear, accurate reports. Choosing the right technology gives advisors an easy, practical way to tell a client’s story using data.

Advanced tools enable advisors to show clients where their investments have been, where they are, and how to make the right changes to achieve their individual financial goals. They give investment managers control to define growth goals instead of comparing metrics to a market index, and they offer detailed insights and clarity that fuel important discussions on growing wealth and spending strategically.

To support advisors, First Rate has developed CORE™, the core investment performance, and client reporting software for wealth management firms. CORE is a holistic web-based console designed to meet the complex client goals-based reporting demands of your individual clients. It’s designed specifically to deliver a holistic wealth view for the client through in-depth reporting on specific individualized metrics. A key part of the CORE platform is the ability to automate the repetitive activities involved in financial reporting that can limit productivity and hinder your ability to add new clients.

At First Rate, we believe that when you tell your story using a combination of superior digital tools like our goal-based reporting application through the CORE solution, and excellent one-on-one attention, clients are more engaged, long-term relationships thrive, and your competition is left behind.


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