This study, the fifth in an ongoing series of FOX studies on the structure and operation of integrated wealth advisory businesses, finds the need for growth is leading to stronger sales cultures and reinvigorated sales efforts.
According to the study, driving these changes is the need for firms to be able to capitalize on new revenue opportunities, compete for the industry’s top talent, overcome the inconvenience of having to pre?empt management resources as sales opportunities arise, and maintain market share in a growing industry.
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Although sales teams and sales processes vary considerably from firm to firm, nearly all wealth advisory firms are clarifying – and strengthening – their sales?related roles and responsibilities. Some firms are adding one or more business development officers to work exclusively with wealthy individuals. Firms that use their relationship managers extensively to develop new business are refining incentive plans for business development activities and providing new sales training and coaching tools, the report says.
Wealth advisory firms still depend on their top talent to close business. According to the study, relationship managers at 76% of firms have some type of sales responsibility; at 88% of firms, most or all prospective clients meet with senior managers during the sales process.
Given the importance of strong interpersonal connections to wealthy individuals, senior managers and service team members are likely to remain involved in sales to some degree. However, firms are increasingly judicious about how they involve their top employees in sales, especially as they grow, the report further added.
At the same time, firms are becoming increasingly judicious about how they deploy top-level executives in sales, especially as they grow. "More sophisticated marketing and referral efforts, combined with early sales cycle qualification and vetting efforts, ensure that senior and star talent spend their time meeting with higher-quality, better-fit prospects," FOX’s managing director of research, David Lincoln, said in a statement.
However, family wealth advisory firms are unlikely ever to marginalize their service-first ethos, Lincoln said, "but with greater balance between sales and service, a niche financial services business may yet realize its full potential."
