Making a sale is an exciting, necessary, and important step to growing a business. In wealth management, the products and services sold range from financial plans and investment management to insurance and trusts.
However, most advisors do far more for their clients. Wealth managers provide the possibility of a better future by helping to fulfill clients’ goals and financial dreams.
Doing so requires becoming a trusted partner, one that can guide clients through the ups and downs of the economy and life. It means building a relationship with clients, paying close attention to their interests and needs; looking beyond what we are offering to instead focus on the people we’re serving.
At TradePMR, we believe there is an important distinction between a “transactional” approach to business versus a “relational” approach. It may be a subtle difference, but as we explored in our “customers vs clients” blog, it can have a significant impact on how firms differentiate in the marketplace.
Relationship vs Transactions
“Relationship-based” sale models are designed to help others while providing a profit for the seller. According to this philosophy, a seller is providing valuable, genuine help with an eye towards continued assistance in the future, which warrants compensation and builds a foundation for a long-term relationship.1
Meanwhile, “transactional” interactions are generic, interchangeable and do little to address anything more than an immediate need. It’s like grabbing a burger from a fast-food chain versus dining at your favorite restaurant with a server who remembers how you prefer your steak cooked.
That’s not to say that transactional sales are bad. They are perfect for quick, low-cost, commoditized products and services, where buyers are just as likely to be numbers, rather than people.
Many advisors are keenly aware of the difference between “relational” and “transactional” interactions, even if they haven’t used that terminology before.
Relational interactions are energy- and time-intensive. They involve research and proactivity, not just when it comes to understanding a client, but also when it comes to knowing the characteristics of the products and services they’re providing. It’s about connecting with a client, not product-dumping.
More Than Just a Sale
At TradePMR, we believe that the best advisor-client interactions are a product of relational interactions. After all, that’s why advisors tailor solutions to specific financial goals and reach out to clients when they need it the most. It’s a strategy that provides the strong foundations necessary for weathering market booms and busts and creating multigenerational advising opportunities.
That’s why we aim to make our own business relational rather than transactional. We work to build rapport with the executives and advisors who rely on our services and products; practice active listening to uncover the needs of our clients and respond to them; and work to customize our solutions, whenever appropriate, to provide much-needed personalization in the wealth management industry. We value regular check-ins and a human touch.
We like to think about opening relationships instead of closing sales. We pride ourselves in the one-on-one support we provide, which is why we don’t have a call center and why we pick up the phone within seconds of receiving a ring from our advisors. And we believe in the art of the follow-up: conversing with our clients at a pace that’s appropriate, without being pushy or absent.
To experience the difference between relational and transactional interactions, it’s as simple as reaching out to us. To learn more about our “relational” requirements, the custodial services we provide, the technology we’ve built, and what it means to be a client at TradePMR, schedule a conversation today.
For more than two decades, TradePMR has worked with growth-minded independent registered investment advisors (RIAs), providing innovative technology tools and support designed to transform their businesses. The privately-held brokerage and custodian services provider (Member FINRA/SIPC), based in Gainesville, Fla., works to streamline fee-only investment advisors' operations through comprehensive custodial, operational, and trading support. For more information, visit www.TradePMR.com.
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1 “How to Buy/Sell Professional Services,” Warren J. Wittreich, Harvard Business Review, March 1966