Developing an Engagement Plan

The underpinnings of a successful engagement plan require taking a holistic view of clients and their families in a way that extends beyond the traditional “know your customer” efforts required by regulations.

Developing an engagement plan will put an advisor in a distinct—and advantaged—minority, since such plans currently are absent among most advisors.

Recent research conducted by InvestmentNews reveals that fewer than 24% of advisors currently have an engagement plan in place. Importantly, 57% of advisors at firms of all types have no formal plan or strategy in place for developing relationships with their clients’ children, with the remaining 19% of advisors also having no plan in place currently, but expecting to develop one.

In that latter group, about two-thirds expect to have a plan in place within a year, and one-third within one to three years. When those with a plan were asked about its success in retaining clients’ children, most advisors— about 56%—judged those plans to be moderately successful, with about 31% saying that the lack of a relationship with adult children was the single biggest reason for failing to retain them.

Developing a plan to engage an often neglected spouse and a couple’s children or other important family members should begin by gathering information about the entire family, if not immediately then as soon as reasonably practicable. This information should include:

Having a full range of client information and a motivation to make family engagement an integrated part of the business is an important first step. The next is working on ways to engage all family members.

To learn more, visit: https://www.cadaretgrant.com/start-preparing-your-practice-for-the-next-generation/.