One of the biggest mistakes advisers make is not spending as much time and effort following up on their leads as they do trying to generate those leads.

Let me ask, have you ever calculated the lifetime value of a client?  How about the cost of developing a new client?

These two numbers are crucial to the success of your business.  Many of the most important decisions you make are derived from these numbers.

The amount of income you generate from an average client over their lifetime determines how much you're willing to invest to obtain that client, right?  So if you haven't already done so, I suggest you take a few minutes to make the calculations.

Leads Are A Valuable Asset

One of the biggest mistakes that many of us make is not pursuing leads in a consistent orderly manner.  Given the potential value a lead represents it's worth your time to:

1. Create a lead generation system
2. Create a follow-up system.

Let me outline a very simple automated system for lead generation and follow-up.

You begin by sending a postcard, letter or notice of an upcoming event to a list of prospects.  Your goal is to drive them to call you, email you or maybe visit a web-page to request a free report or brochure; something prepared by your home office that is compliance approved.

Your response will include the requested report or brochure and a simple cover letter designed to pre-qualify your prospect and to pre-sell him or her on YOU (not your company, not what you sell, but YOU).

If your prospect doesn't respond after receiving the free report, you automatically send a second letter or possibly an email (if they provide an email address) with a brief note, i.e., "I recently sent you our report on The ABC's Of Investing but have not heard from you.  I know you're busy but please give me a minute to speak with you etc......."

If they don't respond to this, ten days later you send one more contact; a third letter and/or an email. After that you automatically put them on your list to receive your periodic newsletter or other contact tool.

Most financial advisers don't follow up after their first attempt. Why? Because it's a manual process and a hassle. They either forget, get bogged down in other work or they get frustrated and move on to a new strategy.  This is the worst thing you can do.  Don't give up at this point, persistence pays off for those who have patience.

You now have the basics of an automated system.  You automate the process by assigning the tasks to your assistant or team members.  You tell them, "here are the letters, here are the emails and here are the dates I want you to send these.  If there are any problems let me know".  If you don't have an assistant or team we can provide a solution.  Call and let us know, we'll help you.

This system is designed to put your lead generation and follow-up on autopilot so you can focus on closing sales and staying in contact with existing clients.

Staying In Contact With Existing Clients

As for existing clients, you're making just as big a mistake if you're not staying in contact with them in a systematic way.

You can gain so much long-term leverage from your clients by just staying in contact with them on a consistent basis.  A hand written note attached to a WSJ article, a newsletter, a comment about a recent news story, anything you can personalize will suffice.

If you don't do this, the goodwill you've generated will begin to disappear.  Absence does NOT make the heart grow fonder, not in the business world.

The cost to you of having to find and develop new clients far exceeds the cost of maintaining existing clients and generating more income from them.  It pays to stay in contact with your customer base!

You've probably heard recent radio commercials touting the "Constant Contact" product, this is what it's all about; staying in touch with your customers.

Creating contact and follow-up systems should be an integral part of your marketing program.  Call us at 800-282-4567 or go to our website at Larkspurdata.com if you would like more information.  Mention this article and we'll give you the option of either a $100 discount or 500 extra leads on the next order you place with us.