What is the future of prospecting?

Prospecting is changing, with many options available, but the human touch in some of the approaches below might still prevail.

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Prospecting is like housecleaning.  You know it needs to get done, but you secretly wish you could pay someone to do it for you.  The pandemic lockdown changed many ways we do business.  Many agents and advisors likely hope prospecting would get lost in the shuffle.  No chance.  You always need to be adding new clients.

Lets look at several ways it could go:

Buying leads.  A friend in Asia is doing telephone prospecting.  The firm buys leads.  I doubt they are cheap.  In the US, there’s likely a system that captures contact data on people doing searches on “financial advisor near me,” then repackages and sells that information as leads.

Outcome:  Advisors and firms would buy leads harvested online.

LinkedIn “Catch and release.” Everyone accepts prospecting is a numbers game.  Businesses would engage a Linkedin marketing company that helps you create a profile, then sends out hundreds, no, thousands of LinkedIn invitations like “I found your profile intriguing.”  The percentage that accept are sent an automatic message saying “I’m an (X) doing business at (X firm).  Here’s what we do…”  Some users respond, getting a second message prompting you to make an appointment.

Outcome:  The robocall gets reinvented.

Building your LinkedIn network.  You buy into the LinkedIn concept.  You build a network.  You post content.  You answer messages and follow up.  You position yourself top of mind when a connection wants insurance or investment advice.

Outcome:  Social media gets used properly, but it takes a long time to get results.

Webinars and videos.  Firms engage a company to produce professional videos.  It promotes your business or shares some educational content.  If you belong to LinkedIn groups, you see lots and lots of short videos posted.

Outcome:  People will attempt to “talk” with prospects without picking up the phone.

E-mail campaigns.  According to Forbes, it’s still an effective strategy.  You can learn a lot by doing research.  Everything can be measured.  You’d better have a compelling subject line.

Outcome:  You will be sending (and receiving) lots more e-mails.

Cold calling.  It’s easy to talk down, but it works.  Why?  Because you get lots of robocalls.  You get calls from charities.  People want to buy your house or “any other real estate you own.”  Again, it’s a numbers game.  Because of DNC rules, you will likely focus on B2B calling.

Outcome:  People will try to buy better and better lists.  The leads uncovered in Strategy #1 will likely get phone calls.  You wonder about the legality.

Social prospecting.  Join the right groups.  Attend the right events.  Meet the right people.  Ask the right questions.  It’s probably why Chambers of Commerce were invented.  Once people get comfortable with attending group events, popularity could pick up.

Outcome:  Agents and advisors join the right groups and get active.  It’s a slow process.

Seminars.  These might be online.  In many cases your favorite nonprofits have moved their programming online.  Lots of lectures.  You and your firm get on the bandwagon.

Outcome:  You and your firm produce approved content.  All the effort goes into building the audience.  What else is new?  They eventually transition from virtual to live events.

Surface mail.  It’s so “out” it’s “in.”  Check your mailbox.  You get bills and advertising.  A proper letter on high quality paper becomes a treat.  The more personalized the better.  The major advantage of letters is staying power.  They can be saved.

Outcome:  Firms and agents will do more direct mail campaigns.

Referrals.  It’s been the best and will probably always be the best.  Surveys show most clients are agreeable to referring business.

Outcome:  Agents and advisors will try to find the magic words to use when asking for referrals.

Technology will play a big part, but person to person, human contact is the most important element.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, “Captivating the Wealthy Investor” can be found on Amazon.

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