Generate Greater Income While Serving Fewer Clients
A smaller stable of clients allows wealth managers to spend more time focused on the client relationship-resulting in better service and, in turn, greater client retention and word-of-mouth marketing. --John J. Bowen, Jr.
One indication that wealth managers employ a more effective business model is their ability to generate greater income and assets while serving fewer clients. For example, wealth managers serve just 101.1 clients on average. The typical investment generalist serves 269.3 clients. This is a key point. Many advisors can't believe that reducing their client base will lead to more income and assets. But the evidence reveals that wealth managers win not in spite of having fewer clients, but because their client lists are smaller. Why? A smaller stable of clients allows wealth managers to spend more time focused on the client relationship-resulting in better service and, in turn, greater client retention and word-of-mouth marketing.
-John J. Bowen Jr., in Getting an Edge with Wealth Management
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