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How Can Advisors Differentiate Themselves from the Competition?

With firms under pressure to expand, fees facing increased scrutiny and client attitudes changing, it’s more important than ever for advisors to stand out from the crowd, yet a new study finds that a majority of investors think all advisors make the same promises.

In fact, the study by BNY Mellon’s Pershing finds that even top advisors struggle with developing a unique value proposition. In “Advisor Value Propositions: How Advisors Showcase Their Value—and What Investors Secretly Think,” 63% of investors surveyed indicate that all financial advisors make the same promises, making it difficult to distinguish among them.

Conducted by The Harris Poll, the study examined the websites of Barron’s Top 100 Independent Financial Advisors for 2017 and then surveyed over 1,000 high net worth investors from February to March 2018 to find out what investors think about the value statements of these firms. Among the revelations was that 26 of the top 100 FAs’ websites claim they “provide comprehensive portfolio management,” which was viewed a not a key differentiator.

“Our study shows that while most advisors recognize the importance of a compelling value proposition, many don’t quite know how to create one,” explains Janet Kelly, vice president, Practice Management Consulting at BNY Mellon’s Pershing. “Many advisors fall into the trap of using industry jargon, generic terms or trite clichés in an attempt to distinguish themselves, which doesn’t resonate with clients.”

Common mistakes advisors make when building their value proposition include not tailoring their messages to their target clients and not emphasizing the importance of trust, accountability and transparency, the study notes.

“A unique value proposition communicates an advisor’s passion for serving clients, the value and the expertise they bring to clients,” notes Kelly. “Taking the time to reflect on these critical elements will not only infuse their communications with new language, but can also energize the advisor team.”

According to the study, firms looking to build a “distinguished value proposition” should consider the following advice.

Clearly articulate who you are. Advisors should assess their skills and what unique value or specialty they have to offer. In addition, they should clarify their aspirations and vision for their firm. Advisors should include “table stakes” themes, such as tailored solutions, fiduciary duty, and trust/integrity/accountability, but they should also differentiate themselves by highlighting their niche.

Understand your clients and explain how your services benefit them. Advisors should be prepared to answer questions such as:


  • Who is your ideal client and what are their key concerns?

  • What do they want from an advisor and how does what you offer benefit them?


Give them a reason to choose you. Pershing emphasizes that advisors should be able to demonstrate their commitment to client success and protecting clients’ money but also show them what makes the advisor special and how their approach and vision will benefit the client.

The top value statements that investors best responded to when choosing an advisor included “We are a registered investment advisor with a fiduciary duty to protect your interest,” followed by “We are accountable to our clients — we say what we do and we do what we say.” Meanwhile, the statement that attracted the least investor interest was “We help business owners balance the needs of their business and their personal goals.”

Build an emotional bond. The study further recommends that advisors should speak to their client’s dreams and aspirations. To that end, they should clearly articulate how their vision aligns with their client’s dreams and how the advisor will bring them closer to meeting their life’s goals. In fact, 7 in 10 investors say it’s very or extremely important to have a financial plan that addresses their life goals and not just their finances. “They want advisors to make them feel confident, self-assured and empowered,” the report notes.

Taking advantage of social media.  The study shows that more than 40% of all investors and 73% of younger investors turn to Google to conduct research on advisors, yet advisors apparently are not optimizing their social media presence. Perhaps most striking is that one in three investors said they have looked at advisors’ personal Facebook pages and more than half of them decided not to work with an advisor as a result.

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