Deepening Client Relationships is Effective for Advisors, LPL Financial says 

When it comes to prioritizing growth, advisors need to have a clear gameplan on defining what “growth” means for their practices and how they can provide “tailored” services to their clients, according to a newly released survey published by LPL Financial.  

The survey found that “top growers” in the industry prioritize clients who have long-term financial potential. A client who is 60 years old or younger builds better business relationships with their advisors, which is less than 35% of clients who are in the decumulation phase. 

The study focused on four key areas that illustrate where behavioral skills and tactics play an instrumental role in how “top growers” can strengthen their relationships to achieve long-term stability within their practices. 

Advisors typically hold about 60% or more of client assets in advisory rather than brokerage and use financial planning as a doorway to more in-depth conversations and to expand solutions beyond traditional investing methods. 

The demand for more “personalized” and “customized” services and advice from advisors stems from more clients being selective about new prospects, elevating their value proposition, and seeking support for scalability with various tools, including onboarding and process design. 

The survey also revealed that advisors don’t only consider the amount of assets under management a client or firm has, but also consider their growth potential, stage of business, and services. 

“In today’s advisory landscape, growth is no longer a luxury, it’s a necessity,” Kraleigh Woodford, EVP of growth strategy and enablement at LPL Financial, said. “As the demand for advice continues to build, advisors and institutions will need tools and solutions that help them scale and grow on their terms.” 

LPL Financial’s Advisor Growth Study compiles data over six years of structured data, from over 14,000 financial advisors across business models and geographies.