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.
Recommended for you
Adviser losses this week are quadruple the same period a year ago, with the industry falling into negative territory for the last 12 months.
Colonial First State has announced the latest manager to join its Edge managed accounts menu, focusing on providing investors with a strategic income.
Rising advice fees has prompted Radar Results to increase its price guide to a minimum of $3,000 per client to reflect the changing shape of the adviser landscape.
Investment consultancy Ascalon Capital has appointed a new partner, who joins from 20 years at Zenith Investment Partners, as well as a new chief executive amid a “bold new chapter” for the firm.
