Eight ways advisors can better connect with high-net-worth clients

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“Let me tell you about the very rich,” F. Scott Fitzgerald wrote in his 1926 short story The Rich Boy. “They’re different from you and me.”

Fitzgerald went on to unveil an unflattering account of the wealthy as soft, cynical and displaying an air of superiority. We can all have differing views on that, but I believe he was right in his first comment.

As someone who has studied the wealthy for more than two decades – both as a private wealth marketing professional and as host of Serious Coin, a podcast about handling wealth – I believe the ultra-high-net-worth are different in terms of their behaviour and expectations of service.

Here are my observations, along with insights from affluent people and advisors I’ve interviewed, in this list of eight practical tips for advisors who want to succeed in attracting and serving this hyper-niche segment.

1. Wealthy people talk to each other about money, so make sure you are referrable.

You can forget the adage about never talking about money in polite company. The ultra-high-worth often swap ideas on managing wealth.

One advisor to the uber-wealthy told me he has observed that the more money people have, the more likely they are to share and compare: “They’ll be having breakfast together and the conversation is all about ‘What are you doing? What are you investing in these days?’”

These conversations allow them to gain insights, build relationships and form partnerships that can lead to new opportunities, connections and collaborations. And when they think they have discovered something new or interesting, they tell others.

Think about the power of that word-of-mouth. Imagine your name was inserted into those conversations. What would your clients say about you?

2. Improve your digital assets, because the wealthy do online research.

Even with a referral, your prospective clients will likely do their own research, so you’ll want to ensure your digital assets are just that: assets.

Are your website and social profiles current and compelling? Do they quickly communicate your purpose and value to users? It may sound harsh, but a cumbersome, outdated or error-filled website may cause prospects to draw the same conclusions about what it’s like to work with you.

People form a first impression of a website within the first 50 milliseconds of visiting it and will leave within 10 to 20 seconds if they are not engaged by its content or design.

If you don’t look and sound different from the rest, how will you convince them you are different from the rest? Don’t make prospective clients work to understand your proposition. If the “cognitive load” is too heavy, they will likely move on rather than put in the time to try to understand.

Consider your SEO and paid-search strategy, too. In a previous role, I was often contacted by prospective clients who found us while researching other firms to which they had been referred but were unimpressed.

3. Ask and listen, and they will help you craft a successful pitch.

How do you handle a first meeting with a prospective client – or, in the case of charities, a potential donor? Do you exchange pleasantries and then launch into your presentation? Your prospective client has asked for or accepted the meeting for a reason. Do you give them a chance to state what that is? How much do you talk? How much do you listen, and how much do you tailor your presentation based on what you have heard?

The absolute best salesperson to the uber-wealthy who I know tells me, “The biggest mistake people make is to go in and give the pitch without seeking first to understand what is on the minds and hearts of prospective clients.”

Even super-private, uber-rich individuals will tell you about themselves, he says. Entrepreneurs love to talk about how they built their business.

Naturally, some will open up more than others; you will be able to gauge this with open-ended questions such as: What are you looking for? What’s important to you? What’s been your past experience with [whatever service you’re offering]? What did you like? What did you not like? What are you looking to change/achieve?

Displaying your natural curiosity and an easy, conversational approach will allow you to orient your pitch to suit the prospective client. They will tell you what they want if you take the time to ask, and, more importantly, listen.

This sentiment was echoed in a recent podcast episode I recorded with a Tiger 21 chair, Stu Wolff. He said, “So many times, I’ve heard from [Tiger 21 members] that, “I just feel like I’m getting put into a mould and they just fill out the blanks on the forms.” His advice for advisors is to “really listen to what your client is looking for and what they want. Not everyone fits into the same mould.”

One way to demonstrate that you are truly listening is to set down in writing what you heard in the meeting and reflect it back to the prospective client in an email or draft proposal. Not only does this show you were listening, it allows the prospective client to clarify or add anything. In other words, you’re collaborating.

4. Come prepared and be concise, because time is their most valuable commodity.

Mark Cuban, billionaire investor and entrepreneur, once said: “The most valuable thing you can give someone is your time. Don’t waste it.”

It sounds obvious, but not wasting time starts with being punctual and prepared for meetings.

A personal example: My husband and I were once contemplating making a charitable gift. The development officer of the organization suggested it would be good for us to meet the CEO. We agreed and a meeting was arranged. Unfortunately, the CEO arrived 10 minutes late and breezed in saying, “So, I don’t know anything about you. Tell me about yourselves.” If he had invested just 5 minutes to get briefed ahead of time, he would have known we’d been giving to his organization for years and were already part of a donor recognition program. Lack of preparation put the entire credibility of the exercise in question.

More importantly, get to the point. Be succinct and distill your message to be crisp, compelling and engaging.

A study by the University of California, Berkeley, found that participants were more likely to invest in pitches that were concise and easy to understand, favouring those that were absent of jargon and used simple language to convey the value proposition. Consider doing a scan of your pitch (written and verbal) and asking yourself whether the average Grade 7 student could understand it.

One ultra-high-net-worth investor I interviewed several years ago told me that there are just five things he wants to know before investing: What is it? Why should I do it? What are the risks? What’s the potential upside? How are you participating/being paid?

“Beyond that, I’m not interested,” he declared.

5. Stop selling: Wealthy people are wary of it.

I’m being only somewhat facetious when I suggest that the uber-wealthy are more inclined to take bad advice from peers than good advice from professionals.

Why? Some of it may be hubris. But, more likely, they trust the honesty and judgment of smart, successful peers. And they often perceive advisors as having something to sell and possibly not being as successful as they are. The danger of this approach is that peers often lack expertise and the ability to provide professional advice.

In fact, I believe this is one reason the ultra-wealthy often fall prey to bad investments. They have so much money coming in, it’s hard to follow it, both from a time and due diligence point of view. The very instincts that made them successful in their own business are not necessarily helpful when they venture into other investments.

My advice for advisors is to approach confidently and with a genuine desire to share your knowledge in a way that demonstrates not only field expertise but, more importantly, the circumstances and interests of your prospective client. In other words, stop selling.

To illustrate, I was at one time part of a pitch for the management of a large trust on behalf of beneficiaries who were new to investing. We worked hard on our response to the RFP and were among the two finalists. Our presentation was delivered by senior members of the investment team.

We lost. Why? The prospective client later explained that although our pitch was polished and highly professional, the winning advisor did more to earn their trust by sharing his knowledge and expertise.

“It was like having an uncle who happens to be an investment genius tell you what you should know. He sprinkled insights all over the table,” the prospect told me later. While we were focused on us – our capabilities and what we could do for them – the other advisor was focused on the clients, educating them about the issues, opportunities and choices they faced, and he earned their trust as the guide with the solution. It was a lesson I never forgot.

6. Bring your A-game, since they have sky-high expectations.

Right or wrong, the ultra-wealthy are used to getting what they want – through their own sheer force of will and grit, or through the power and privilege their money affords them. They have high expectations for themselves and those on their team.

Advisors who want to be part of that trusted inner circle need to “exceed to succeed” – service them like crazy, don’t make sloppy errors and pay attention to detail.

Look for ways to “surprise and delight” them with your responsiveness. If they have a cross-border tax question, get your U.S. tax specialist on the phone immediately. One advisor told me about how he won clients over by “turning around a complicated 20-page customized proposal in less than a week.”

7. Try to match their communication style.

Generalities aside, the ultra-high-net-worth segment consists of many personality types, preferences and communication styles.

Do you know the communication preferences of your clients/donors?

One client may invite you to their home for review meetings and also want to talk about current events and the economy with you over a leisurely lunch. Others want a 10-minute phone call and have no interest in discussing broader issues.

One donor may want to hear anecdotes and heartwarming stories of the impact your charity is having on its community. Another may prefer hard data points that show results and SROI.

More from Canadian Family Offices:

• As fear of downturn looms, a look at playbooks of high-net-worth investors
• Private investment in portfolios: opportunities and challenges
• Peter Jaskiewicz saw his family’s business fail. Now he’s helping others

Try to match your communication style to your audience. If you ask them, they will likely tell you how they prefer to receive communications and what they’re most interested in. Too few people ask.

If you are thinking of hosting clients at dinners or events, think hard before you make the ask. As one advisor told me of his billionaire clients, “They have no interest in going to dinner. They have their families, their friends, their business interests. They don’t have time and they’re not looking to be impressed. My wealthiest client likes to meet me in a coffeeshop.”

In fact, failing to address their true needs and concerns, while offering up what they may view as frivolous activities, could even compromise your relationship with them.

8. Be transparent: If you have bad news, they expect you to share it.

In spite of all of your efforts, things can go wrong. Be proactive and transparent. Deliver the bad news with as much detail and emphasis as the good news. Tell your clients how it arose and what you’re doing to fix it and/or prevent it from happening again in the future.

Like everyone else, wealthy people know that not everything works out, so having a frank discussion about missteps can be an opportunity to show your true colours and win the trust of your clients.

The rich may indeed be different, and they’re not all the same. But practicing these common-sense tips can give you an uncommon advantage when you demonstrate trust, transparency and simplicity in helping your clients manage their wealth and well-being.

Kelly Willis Green is an independent marketing advisor to organizations seeking to better understand, reach and satisfy the unique needs of high-net-worth individuals. She is the creator and host of Serious Coin: Rich Conversations About Wealth, a podcast that explores the financial, emotional and lifestyle benefits and challenges of coming into wealth.

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