Ipac’s Gupta: client psychology the key

MOST advisers segment clients by wealth, but it is more important to segment them psychographically, saysipacchief executive officer Peeyush Gupta.

The ipac model divides clients into three groups based on their attitudes to investing. The first group is described as DIY (do-it-yourself), and account for between 15 and 25 per cent of the client base. Gupta says these clients are price-sensitive. Tax and legislation complexity impacts on their investment strategies.

The advice-receptive group, which accounts for between 35 and 55 per cent of clients, are the ‘heartland’ clients to win, he says.

This third group are the delegators, comprising between 20 to 30 per cent of the client base, who will pay for advice. It is possible to build long-term relationships with these clients, says Gupta.

“The best clients to have are the delegators as they are profitable,” he says. “They are advice-perceptive, but still want to control some things.”

High-net wealth clients enjoy being given frameworks and want some control, Gupta adds.

“A high-net-wealth client is a relationship on three levels: a psychological relationship to achieve life objectives; help with life-cycle events; and products and transactions,” he says.

“They want an adviser they can trust — and this is achieved in the first 30 seconds of the first meeting.”

Gupta says the client expects the adviser to recognise their successes and offer to take away any financial worries in the future.