RIA Benchmarking Study Means
RIA
Benchmarking Study Means
In our recent
webinar, we spoke with Lisa Salvi, vice president of Business Consulting and
Education for Schwab Advisor Services, to discuss the findings of the 2020 RIA
Benchmarking Study and highlight the factors underlying that growth.
The Importance of a Strategic Plan
Currently in its 14th year, the RIA Benchmarking Study is
one of the leading studies in the industry and features findings from 1,010
advisory firms representing $1.1 trillion in AUM.
Conducted between January and March of 2020, the study found
that advisors started the year in a position of strength following the longest
bull market in recent history. Surprisingly, many firms continued to see
ongoing growth even during the worst periods of volatility in March.
“Advisors are used to innovating... and I think that’s one
of the things in this COVID world that has helped to set them up for success,”
explains Salvi, emphasizing that a keen focus on client experience has made a
crucial difference during a period of extreme uncertainty. “We saw people pivot
their business model very rapidly and serve their clients extraordinarily well
throughout this time period.”
One of the biggest predictors of success for many firms has
been a clear and actionable strategic plan. In fact, 75% of the top-performing
firms in the study had these plans in place before the start of the pandemic
and have been able to adapt to challenges more effectively as a result.
According to Salvi, a comprehensive strategic plan should include a long-term
vision, SWOT analysis, a purpose, and a value proposition. She also emphasizes
that firms of all sizes can benefit from having one.
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Persona Targeting Can Yield Significant Results
To create those personas, firms need to take into account
the demographic and psychographic characteristics of their ideal clients and
understand what matters to those clients and what they value. For firms that
are still in the early stages of growth, Salvi suggests that it’s okay to take
on clients outside of those ideal personas, as long as there is some overlap
with the key demographic they aim to serve.
A focused business model that focuses on ideal client
personas and a strategic plan can give your firm a clear sense of direction and
a predictable growth trajectory. Best of all, it can help you navigate periods
of volatility and still come out on top.
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