Looking for Mr. Good Client
The following is based on one of The Covenant Group’s clients. All of the names and telling details have been changed.
Mr. Good Client Rhena knew when she met him, that Ralph was the client of her dreams.
Some clients start working with The Covenant Group because they are doing well and want to do even better, others because they’re struggling and desperately need help. Rhena Lister fell into the latter category. When we met nearly she was approaching her two-year anniversary as a financial advisor, the advisor’s version of the seven-year itch. This is when an advisor’s eyes start to rove wantonly over the career pages. Like many others at this crucial stage, Rhena had exhausted her immediate network of friends and associates. Her well of prospects had been drying up fast. For Rhena, a decent first year had been followed by a tough second, and the thought of another painful year wasn’t very appetizing. At our first meeting last summer, Rhena told us she wanted to stay in the business, she just didn’t know how.
When we first met Rhena, we quickly realized she was struggling largely because she wasn’t utilizing a clearly developed marketing plan. Together we developed a plan, which included a simple strategy that catalyzed her now blossoming business. Last Fall, Rhena landed a watershed case that demonstrates the power of her strategy. Let me take you back to the beginning of that case.
Just before noon, the boardroom began filling up with guests. As part of her marketing plan, Rhena had started running a weekly ‘Concept Lunch.’ For today’s event, she had invited six centres of influence and clients and asked them to bring a friend. Rhena stood by the doorway, introducing herself to any unfamiliar faces as well as facilitating introductions amongst her guests. In previous lunches, she had managed to initiate a couple of valuable business relationships, for which her guests were grateful. Today, one of her long-time clients, Chris, a young owner-manager of a graphic design firm, had brought along his sister, a lawyer. Other guests included an accountant and two corporate executives. It was a good crowd, but something was missing. Rhena had developed a clear goal for her business, and while this group was a stepping stone to that goal, she was hoping for a more direct route.
A few minutes later, Claire, a marketing VP, walked in with a short, balding man.
“Hi, Rhena, this is Ralph Gomez,” Claire said. “Ralph does all our printing for us.”
“Claire is a terrible client,” Ralph said in broken English. Rhena figured he was from somewhere in South America. “She always wants things yesterday.” Ralph grinned.
Rhena laughed, then asked, “Do you own your own company?”
“Of course, who else would hire me?” Ralph exclaimed. “Excuse me,” he said, then left to grab a drink off the boardroom table.
“Quite a character?” Rhena said to Claire.
“He’s nuts,” Claire added.
Claire told Rhena that Ralph had started his business over fifteen years ago and had built it single-handedly. As the sole owner, he was well off, but still spent a great deal of his time running the business. He was in his early fifties, had a wife and two teenage daughters. As Rhena listened to Claire describe Ralph, her heart began to race. Ralph was the person she’d been looking for.
When the remaining guests arrived, Rhena invited everyone to take a seat. Each guest was given a minute to introduce themselves, and then sandwiches were served. Rhena then stood up to deliver her concept seminar on financial management. Everyone seemed ready -- everyone but Ralph, who sat in the far corner, gazing downward. His body language spelled disinterest.
Unfortunately, he was the guest who mattered most. He was the only one who aligned with her new strategy. Ralph was unlike any client she had. He was twenty years older than her average client and considerably wealthier. But that’s what made him perfect. A couple of months ago, her business consisted of trying to market to her peers, young professionals in their 30s. But that’s why she was struggling. They all had lots of potential, but low net worth. As part of her marketing plan, her new strategy had been to create a profile of her ideal client, somebody who could take her business to a new level. That profile matched Ralph to a tee. She needed to find a way to get his attention.
Rhena began by saying, “Each of you here is successful in your chosen profession or business. You’re successful because you stick to what you know best, and by delegating the things you don’t do well, or don’t want to do. I’d like to talk to you today about the thing that I do well – financial management.” As she spoke, Rhena carefully gauged the interest of the audience. She would follow up heavily with anyone who seemed attentive. Her heart fell every time she glanced over at Ralph. His eyes looked heavy. He was obviously tired and having trouble paying attention.
At the close of her seminar, she encouraged questions. There were questions from many of her guests, but none from Ralph. It wasn’t looking good. Clearly, she hadn’t made an impression on him, and as far she knew, he hadn’t mingled with the other guests.
As everyone was leaving, Rhena racked her brains for a way to get to Ralph. She saw her chance. Making his way to the door was Chris, her old client. She buttonholed Chris, then turned to Ralph. “Ralph, I’d like to introduce you to Chris, he’s a graphic designer. From what I know, his company does quite a bit of printing.”
Rhena saw Ralph’s eyes widen. New business was the way to his heart. He immediately launched into an animated discussion with Chris.
A few days after the seminar, she called Chris to see how it went with Ralph and learned that Ralph was quoting on a run of brochures.
Normally Rhena follows up with her guests by sending a letter, then calling. But with Ralph, she was willing to go that extra mile. She called Ralph after speaking to Chris and offered to take him to lunch.
“Why would you do a thing like that?” Ralph asked.
“I’d like the opportunity to show you how we can work together,” Rhena replied.
The lunch meeting went well. Ralph agreed to let Rhena put together a proposal for how she would manage his finances. When they reviewed her proposal, he was impressed, and soon after, Ralph became a client.
Lessons Learned
When Rhena began working with The Covenant Group, we asked her what type of client she wanted to work with. Her immediate answer was rich ones. We explained that was a good beginning, but she needed to be specific. This was how we began developing her Ideal Client Profile. For each advisor, there is a unique ideal client. The challenge in creating an Ideal Client Profile is to choose a client who not only makes good business sense but who also suits your talents and experience.
For Rhena, the answer lay in her earlier career as a banker when she worked with older, owner-managers, helping them finance their businesses. She knew a lot about these people and what they needed. Rhena eventually developed a full-page demographic and psychographic description of her ideal client, which included: an owner-manager between the ages of 50 and 60, with a family and a net worth of over $1,000,000, who is still highly active in their business with little time left to oversee their personal financial affairs.
This was the type of person she was used to dealing with as a banker, and now, as a financial advisor, she could market to them and grow her business. Without her Ideal Client Profile, Rhena believes she would have let Ralph slip through the cracks. He had not shown much interest during the seminar, and certainly, her regular follow-up would not have been enough. Instead, she realized he was worth pursuing, made a point of introducing him to Chris and took him to lunch at a nice restaurant, something she could not afford to do for all her prospects.
Today, Rhena’s focus on her Ideal Client Profile continues to pay big dividends. Through Ralph, she has met other clients. She figures that within two years more than half of her clients will fit her Ideal Client Profile.
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The Covenant Group is referred to by many as the place entrepreneurs go to become Business Builders. They are considered to be thought leaders and have authored the best-selling books, The 8 Best Practices of High- Performing Salespeople, The Entrepreneurial Journey, and The Business Builder.