Insights on how advisors adapt and drive growth

Strategic planning, effective execution, and a growth mindset have helped RIA firms thrive—even in recent times of change. The benchmarking research identified that strategic planning helps firms sharpen focus and alignment around their long-range vision for future growth while also staying ready to pivot as needed. In the charts below, the 2021 RIA report shows continuing growth in total clients, revenue, and AUM.¹

RIAs benefit from developing an offer based on the needs and desires of the clients they most aspire to serve. Firms that created a written ideal client persona (ICP), client value proposition (CVP), and marketing plan attracted more new clients and new client assets than firms without these documented. In 2020, these RIAs attracted 50% more new clients and 62% more new client assets than firms that didn't put these in writing.² Among Top Performing Firms—the firms with the strongest performance across 15 key business metrics—68% have documented an ICP.³ The data below show how firms are embracing these practices, what services they are offering, and which services they include in their asset management fees.

Technology has helped advisors stay connected with clients and engage with prospects. Half of all firms track the status of prospects in the sales cycle, and firms tend to use their CRM to define and track the steps advisors should take—from first meeting to closing. Almost all Top Performing Firms, 92%, tracked their performance on new client goals in 2020, compared to 75% of other firms. As the charts below illustrate, firms that leverage tools to track qualified leads tend to attract more new clients.

Results of the 2021 report reveal that Top Performing Firms are leveraging many channels to drive superior growth—including marketing as well as referrals. As advisors looked for new ways to connect with prospects last year, digital strategies and website effectiveness grew in importance. Top Performing Firms were more likely to leverage digital tactics. When considering what tactics to pursue, it's helpful to focus on those that resonate with your ideal client. The charts below illustrate how firms are driving new client growth.

As firms made major adjustments to their work environments, supporting employees became even more vital. One way that firms showed their support was to allow staff to work from home. At the beginning of 2021 for all firms, about two-thirds of staff at the median were in the office less than four days a week. Firms also continued to invest in their staff, spending $1,632 per professional on training, education, dues, and licensing at the median. This support helped team members be productive, and in fact, AUM and clients per professional increased significantly compared with 2016, as shown in the chart below.