November 8, 2018 | Article

A recent study showed that advisors who exemplified “know your client” behaviors were more likely to have deeper client relationships and draw referrals as opposed to those who didn’t practice such behaviors.1 This segment of respondents was classified as “behavioralists.” The recent study regarding these behaviors conducted by the Financial Planning Association provided the following key findings2:

  1. Greater satisfaction. Financial planners who engage in leading “know your client” behaviors gain deep personal fulfillment from 60 percent more of their client relationships.
  2. Higher referrals and growth. Financial planners who engage in leading “know your client” behaviors see 56 percent higher client willingness to recommend and 72 percent higher net client growth rate.
  3. Delivering value by pinpointing “say-do” misalignments. Planners who actively identify misalignment between what clients say and what their behaviors show – and constructively resolve those gaps with their clients – report higher success. The survey found that planners who pinpointed this disconnect had almost triple the client growth rate compared to those who did not (30 percent vs. 11 percent), double the referral rate (18 percent vs. 9 percent) and more fulfilling relationships (75 percent vs. 60 percent).
  4. Family matters. Highly proficient “know your client” planners spend more time directly engaging their primary clients’ partners and adult children. They are 40 percent more likely to discuss aging-related lifestyle transitions and cognitive decline with their clients and their families.
  5. Picking a focus. Financial planners who define a specific client audience tend to be more proficient in “know your client” behaviors and see stronger outcomes. This suggests that planners who focus and go deeper with a single client type can use that client understanding to more efficiently attract similar clients.

The study also showed that about 1 out of 7 of their respondents are behavioralists and they outperformed their counterparts. This includes a 30 percent net client growth rate and 73 percent of their clients being willing to recommend. In comparison, these respondents’ counterparts only showed 11 percent and 60 percent in the same respective areas.1

How will you incorporate these “know your client” behaviors to deepen your client relationships and increase your chances of growing your business?

RoboWholesaler is a technology that was created to help financial advisors looking for ways to save time and enhance their productivity. With their time spent more efficiently, they’re able to focus on developing the interpersonal component of their client relationships and grow their businesses. The RoboWholesaler app is now available for free in the App Store and Google Play. It offers you a fast, easy way to review fund performance rankings, and get up-to-date fund fact sheets for top-performing funds and at-a-glance summaries of key fund information.

1 “The State of Client Understanding”The Financial Planning Association, Capital Preferences, and T. Rowe Price.

2 “FPA Unveils “Know Your Client” Benchmark Research in Collaboration with Capital Preferences and T. Rowe Price” The Financial Planning Association.


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