How to find new clients in the coronavirus era

Some advisers attend face-to-face networking events as part of their marketing strategy, to achieve this goal.

But the pandemic has largely removed this activity from marketing plans. So, how are firms going about finding new clients in the current environment?

Some advisers did not view networking events as the right marketing activity for their business anyway, as Scott Gallacher, director and financial planner at Rowley Turton explains: “We tried it previously, but found it too ‘salesy’”.

And an established reputation stands firms in good stead, anyway, in the absence of networking opportunities, reports Malcolm Cannon, client strategy director at Mearns and Co: “Our managing director is very good at going out and making connections, but that’s been curtailed,” he says.  

“But referrals are still our number one source of business, which implies that a level of trust is already there.”

And new business enquiries have bounced back, despite the pandemic, as he explains:

“When the shock of coronavirus first arose, there was a big decline in enquiries. But they are now at the same level as before. I wouldn’t previously have believed, pre-Covid, that you could do things without face-to-face meetings.”

He adds: “People have been doing a lot of ‘soul searching’ as a result of the pandemic – that is, looking at career change or retirement, which has created enquiries.”

Mr Gallacher has also seen a rebound in new enquiries: “The key impact when lockdown happened was that new business enquiries fell off a cliff for two-and-a bit months. All advisers will have suffered due to the drop in new business enquiries.

“Our new business enquiries are back up to normal levels now, though – in fact, a bit above normal levels, as people are doing some catching up”.

Referrals and digital-marketing activity

One approach to developing new business in the new environment is to increase marketing activity by using external suppliers: “We’ve signed up to a digital-marketing company and we’re getting lots of enquiries through our website,” says Mr Anderson: “But we’ve always been proactive. I think reactive advisers will be finding things tough at the moment”.

Ms McCarron also reports positive results from online activity: “Our investment team posts portfolio update videos on Instagram, which we find is excellent for client engagement.”

But she says that otherwise, business-development activity is much as it was before: “At the moment we’ve not made any alterations to our lead sources or methods.

“We find the summer months are naturally slower for enquiries, therefore it gives us time to focus on our existing client bank and ensure we’ve got all their new tax year planning in full operation.

“We expect enquiries to ebb and flow while clients ‘find their financial feet’ after a volatile few months.”

While Ross Leckridge, associate director at Johnston Carmichael Wealth, reports that referrals continue to deliver new clients, other means of recruiting new clients are also under consideration, as he explains: “The majority of our new clients come from referrals and that simply hasn’t changed. 

"A high proportion come from our parent company, with the balance coming from existing clients, professional contacts and other advisers. This is undoubtedly our best source of new clients, both previously and now.

Mr Leckridge also sees potential benefits from digital marketing, as he adds: “We are keen to enhance our online presence and maximise the opportunity for prospective new clients to either find us online, or to do a bit of homework on us following a referral. 

"This will include developing a structured and consistent social-media strategy, as we recognise that, maybe now more than ever, people are finding community online”.

Other advisers are turning specifically to social media too as a way of raising their profile with potential new clients: “I have placed greater emphasis on interacting on LinkedIn,” says Mel Kenny, financial planner at Radcliffe and Newlands:

“Networking events have always been considered to be part of the marketing ‘pie’ and I continue to network with peers online, but online fatigue is the challenge to keep attendance high.” 

Mr Gallacher also sees the value of an online presence, as he explains: “Apart from referrals, most of our enquiries come from the internet, including from our website and social media, which keeps the company visible to potential customers. They also come from sites such as Unbiased and VouchedFor.

He adds: “We had been doing some marketing work already and are planning to use LinkedIn a bit more, to replicate the face-to-face catchups we would be doing”.

No need for new business

But not all advisers are thinking about business development at the moment, as Darren Cooke, of Red Circle Financial Planning says:  “I don’t need any new clients, although I take on some by referral or if they find me organically. I’ve got into this position by doing a good job over a long period of time and by - I would hope - providing a good service.

Mr Cooke, who launched a petition to ban pensions cold calling in 2016, which led to a government consultation and a change in the law, explains: “The pandemic hasn’t really affected me, although the level of referrals has slowed a bit, as people are not seeing each other.” 

He suggests that advisers seeking new business should be proactive: “Speak to clients and ask them to refer you to their friends and family,” he recommended.