For HNW advising, the importance of being "You"
A unique value proposition aids wealthy client prospecting
When seeking to guide the highest echelons of wealth, financial advisors are wise to understand that personal service, comprehensive planning and sophisticated investment offerings – while a powerful value proposition – are table stakes. You’re not in the game without them, but alone they may not be enough to give you an edge on the competition.
High-net-worth and ultra-high-net-worth clients often have specific needs that are narrow and complex, like multigenerational wealth preservation, layered trust and estate planning, or business owner de-risking. Rather than seeking out a jack of all trades, they may be looking for an advisor who has that specific domain experience on top of a broad, well-resourced planning practice.
That is, to get your foot in the door, it can help to have a unique value proposition, or UVP.
Your UVP
Every advisor has a value proposition, whether they’ve put it on paper or not. Many take a value proposition centered on service, planning and investing – that approach is a good one, responsible for a lot of great careers. Over time advisors applying this UVP may add certifications and accolades, and eventually tenure makes its way into the pitch.
But thoughtfully creating your own UVP goes further. It doesn’t just tell potential clients how you can help them; it speaks to the deliberate structure and focus of your practice – and it reflects your practice growth plan. Often, this means investing in yourself to achieve specialized expertise or add a set of service offerings to your practice relevant to a type of client.
This approach is sometimes described as “T-shaped,” representing broad knowledge on many things and deep knowledge on one (or several) of the knotty problems faced by those with significant wealth.
Service-based differentiators
Examples of specialized service offerings that can support a unique value proposition:
- Business value growth and exit planning
- Employee retirement plan management
- Institutional portfolio management
- Private markets expertise
- Cross-border wealth management
Some advisors simply fall into a UVP, often by helping a client with a thorny problem and getting a reputation for being able to solve it. Others deliberately build their practice around a topic, pursuing specialized training and certification. Or they may pivot to higher complexity services when they’re looking to take their established practice up a rung. Interestingly, advisor trainees in AMP, the Raymond James Advisor Mastery Program, start this process early, perhaps by aligning their nascent practice to the specific needs of serial entrepreneurs, for example.
Value-based UVP
A unique value proposition doesn’t have to be about service offerings. It may be about values, language, client family structures, or even style. Being able to talk in the jargon of a potential client’s field can demonstrate your understanding of their needs.
The rest of the equation
A unique value proposition can win business, but clients are apt to throw curveballs. Maybe they came to you because you have a reputation for sharp in-house portfolio construction, but suddenly they want to set up a special needs trust.
High-net-worth clients expect, on average, 10 to 12 distinct service offerings from their advisors, according to Cerulli, an industry research firm.
This is where the crossbar of that T-shaped knowledge comes in – not to be an expert in everything but to know where to get answers. Answers may come from a member of your team whose specialization complements your own, from contacts with other professionals like trust attorneys or insurance specialists, or from your broker/dealer and its catalogue of departments.
Raymond James has a dedicated team for connecting advisors and experts in complex topics relevant to high-net-worth and ultra-high-net-worth wealth management. The firm’s Private Wealth Advisor certificate program also introduces participants to contacts throughout the various business units of the firm, including trust, investment banking and charitable giving.
Proving the proposition
Ultimately, even the best unique value proposition can only be as good as the execution. Reputation, as they say, walks in on foot and rides out on a horse.
Your UVP shouldn’t look like fad-chasing. The most effective unique value propositions are driven by conviction, the best versions coming from advisors who have a real interest in the problem space – it’s hard to fake authenticity.
Understanding UVPs can all be a bit ephemeral, but the main takeaway is that growing your practice into the high-net-worth space often takes more than being a great financial advisor. A unique value proposition helps potential clients – and you – understand what sets you apart.
Raymond James Trust Company of New Hampshire is a subsidiary of Raymond James Financial, Inc. Raymond James Charitable Endowment Fund is an independent non-profit organization that has entered into a services agreement with Raymond James Trust N.A., a subsidiary of Raymond James Financial Services, Inc.