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
As the first quarter of 2024 comes to a close, Money Management looks back on the corporate regulator’s bans and AFSL cancellations in the financial advice sector.
Insignia Financial is holding ‘relatively steady’ onto its rank as Australia’s second-largest financial advice licensee after the Godfrey Pembroke exit but Count is hot on its heels.
Liberal senator Slade Brockman has said the government needs to have a “cold hard look” at the level of regulation in the financial advice space and the costs of running a business.
FAAA chief executive, Sarah Abood, has warned changes in the first tranche of the QAR legislation around advice fees documentation could create more work for advisers rather than less.