There are a number of ways financial planning practices can generate more business through cross-selling
Financial planning businesses can establish new lines of advice or referral arrangements with other firms to improve cross-selling opportunities, increase share of wallet from existing clients as well as retain clients by helping look after a broader set of needs.
Many financial planning businesses now provide risk advice, and this has become more popular as it is increasingly difficult to get new business in the door. So whether you establish a risk department within your business or establish a referral relationship with another risk adviser set on commercial terms, there are a number of ways practices can move into this space.
Another way practices can cross-sell is to offer other services, so it could be mortgage broking, accounting work or even legal services that practices can expand into in a bit to create cross-selling opportunities. While the financial planner is the best person at advising clients on their financial affairs, they might not necessarily be great at providing advice on accounting and are most likely not even qualified to do so.
Creating a referral-type arrangement on any of these fronts can be a positive step for a financial advice business in terms of servicing a client’s broader needs. By providing a holistic range of services to clients, this reduces the likelihood that they will approach potential competitors.
Your client might use another accounting firm which happens to have a wealth arm in their business, and when that firm is talking to your client about their tax returns or building their business up over a period of time, they might start to talk to them about wealth and that actually puts your client in jeopardy of leaving.
By either establishing new lines of advice or referral arrangements with other firms, you not only improve the chance to cross-sell but ensure client retention and longevity of the relationships which are crucial to your profitability.
