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Maximizing RIA Interactions

by Michelle

Today, Ignites reports on a recent survey by Charles Schwab on RIAs prizing communication more than ever. Proactive communication, support from custodians and product manufacturers, investing in new or improved CRMs, help with managing client expectations, a focus on investment approach and strategy, and targeted email were all cited as increasingly important to advisors given the volatile and competitive environment.

An additionally important segmentation point, one of many in kasina's "Maximizing Advisor Interactions: Dos and Don'ts for Wholesalers" report, released in December 2008, is an understanding of team roles and sizes.

As the slow but steady shift in the advisor landscape to the RIA (and independent) channels continues, firms should be reminded that the traditional solo advisor is becoming less prevalent in all advisor channels, particularly with RIAs. Of advisors surveyed, over 50% of RIAs reported working in teams of four or more.

As teams become more pervasive, so does specialization within the teams, and understanding an advisor's specific role is critical to understanding what he or she will be receptive to in a wholesaler meeting. An advisor who works on a team as an investment specialist might be most interested in understanding how a product fits into a portfolio, or what the portfolio manager's process entails, while another advisor on the team who focuses on business development would be the appropriate target for sales ideas or discussing partnering with a wholesaler to host topical seminars for potential clients.

Awareness of these characteristics is key to establishing an appropriate and fruitful RIA service model.