Is Asset Retention Important to Your Business?

The importance of asset retention to your business.

“We classified the types of client risk we face in our retention efforts and made specific plans to manage those risks.” 

The retention of your best clients and their assets is an important part of maintaining and growing the business. Below is an example of how top sales teams classify client risk, and how they address beneficiary risk in particular.

Risk classification
1. Generational risk Adult children often influence parents and question advice and solutions being offered by advisor teams. Are the children of our clients as much of a risk to us as our competitors are?
2. Beneficiary risk Beneficiaries often take inherited assets “away” when clients die. Because of the average age of clients and the amount of assets to be inherited, this risk can result in substantial losses to the business. What has our loss rate been to date, and what do we do today to reduce that risk?
Beneficiary marketing plans
For new accounts Important questions you may want to ask as you are opening a new account:
• “If either of you were to become incapacitated, which of your children should we call first?” This will identify the alpha child, and that is the first person on whom you will want to focus your marketing plans.
• “May I have your permission to call your beneficiaries and introduce myself as your new primary financial advisor?” The new client will probably ask, “Why?” Your response could be: “I want to build trust with not only you but with your children as well, and I want them to know that you will be better taken care of than you ever have been before.”
Here is how the call to the beneficiary might go:
• “Your parents have given me permission to call you and introduce myself as their new primary financial advisor [you might have your assistant on the call also]. The reason for the call is to assure you that your parents are going to be taken care of better than they ever have been before. In fact, when you are nearby I would like to have you stop by the office, or I could meet you for coffee, breakfast, lunch [etc.].” 
• This introduction can be the beginning of marketing to the beneficiaries. Consider using some of your firm’s nonproduct materials or MFS Heritage Planning® materials to do monthly or quarterly touches.
Existing clients
• The problem here is that you may have had this account for some time but never made the effort to meet the beneficiaries. If that is the case, you can slightly alter the initial question at your next meeting. Example: “When we originally set up your account I failed to ask you a very important question concerning your beneficiaries. If either of you were to become incapacitated, which of your children should we call first?”
• You can then follow the same outline under “For new accounts.”

Remember: Be sure to follow your firm’s approval process to obtain approval for any sales ideas or marketing materials you would like to use with clients. For help with this and any other business-building ideas, please call your MFS® partners at 1-800-343-2829 or +1-617-954-6450 (non-US).

Unless otherwise indicated, logos and product and service names are trademarks of MFS® and its affiliates and may be registered in certain countries.

Issued in the United States by MFS Institutional Advisors, Inc. (“MFSI”) and MFS Investment Management. Issued in Canada by MFS Investment Management Canada Limited. No securities commission or similar regulatory authority in Canada has reviewed this communication. Issued in the United Kingdom by MFS International (U.K.) Limited (“MIL UK”), a private limited company registered in England and Wales with the company number 03062718, and authorized and regulated in the conduct of investment business by the U.K. Financial Conduct Authority. MIL UK, an indirect subsidiary of MFS, has its registered office at One Carter Lane, London, EC4V 5ER UK and provides products and investment services to institutional investors globally. This material shall not be circulated or distributed to any person other than to professional investors (as permitted by local regulations) and should not be relied upon or distributed to persons where such reliance or distribution would be contrary to local regulation. Issued in Hong Kong by MFS International (Hong Kong) Limited (“MIL HK”), a private limited company licensed and regulated by the Hong Kong Securities and Futures Commission (the “SFC”). MIL HK is a wholly-owned, indirect subsidiary of Massachusetts Financial Services Company, a U.S.-based investment advisor and fund sponsor registered with the U.S. Securities and Exchange Commission. MIL HK is approved to engage in dealing in securities and asset management-regulated activities and may provide certain investment services to “professional investors” as defined in the Securities and Futures Ordinance (“SFO”). Issued in Singapore by MFS International Singapore Pte. Ltd., a private limited company registered in Singapore with the company number 201228809M, and further licensed and regulated by the Monetary Authority of Singapore. Issued in Latin America by MFS International Ltd. For investors in Australia: MFSI and MIL UK are exempt from the requirement to hold an Australian fi nancial services licence under the Corporations Act 2001 in respect of the financial services they provide to Australian wholesale investors. MFS International Australia Pty Ltd (“MFS Australia”) holds an Australian financial services licence number 485343. In Australia and New Zealand: MFSI is regulated by the SEC under US laws and MIL UK is regulated by the UK Financial Conduct Authority under UK laws, which differ from Australian and New Zealand laws. MFS Australia is regulated by the Australian Securities and Investments Commission.

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