Longevity in Advice: The Three Levers of Sustainable Revenue Growth
Financial advisors face the challenge of generating sustainable revenue growth while navigating through the growing costs of compliance and everyday administration. In the competitive environment of financial planning, revenue growth is crucial for success and longevity. Here are three key strategies for financial advice businesses to drive revenue growth.
1) Grow Your Client Book
The first and most effective way to drive organic revenue growth is by growing your client book. Recent statistics show that two-thirds of “mass affluent” Australians do not currently have a relationship with a financial advisor, and close to half of them intend to enter the market for financial advice. Attract new clients and upsell to existing ones by identifying opportunities through complete visibility of your clients and their needs.
2) Implement a Business Development Strategy
It’s crucial to have effective marketing and efficient onboarding to drive new businesses. But, it is often forgotten to understand how much revenue you generate and where it comes from. Identify the areas that contribute the most to your bottom line by tracking profitability and resourcing. Build a profile for your most profitable clients to focus your efforts and resources.
3) Embrace Technology & Innovation
Technology also plays a significant role in revenue growth for financial advice businesses. As more advisors moved to virtual meetings during the pandemic, embracing technology has opened new opportunities for them. By leveraging data analytics, automation, and artificial intelligence, advisors can improve their services, increase efficiencies and enhance their client experience to grow their client book.
Related Facts:
- The majority of advice businesses run their service offerings as siloed, separate divisions.
- Having complete visibility into clients will help businesses identify opportunities to extend products and services to their existing clients.
- New businesses are critical to growing revenue, and it is vital to understand how much revenue the business generates and where it comes from.
Key Takeaway:
To achieve longevity in financial advice, it’s essential to focus on sustainable revenue growth through a pragmatic and long-term view. By focusing on growing the client book, implementing a business development strategy, and embracing technology, firms can achieve sustainable revenue growth.
Conclusion:
Financial advice firms need to prioritize revenue growth as the apex factor for their sustainable expansion. By implementing these three key strategies and keeping a close eye on building the ramparts of their business, advisory businesses can remain relevant to the clients of tomorrow.
