A lack of clear profiles for target clients is limiting advisers' growth opportunities, Aegon and NextWealth have warned, after research found that just 22 per cent had developed defined profiles for clients they want to attract to their proposition.

When asked to describe what they had done to support the growth of their business, 47 per cent of advisers said they had a general idea of their target clients, while 30 per cent had no target profiles at all.

Referrals from existing clients was ranked as the top channel for client generation among all advisers, with 35 per cent of those with defined target profiles and those with no target profiles voting it as the number one channel, alongside 45 per cent of advisers with a general idea of target clients.

However, the research, which formed part of Aegon and NextWealth’s Organic Growth for Financial Advice Firms guide, showed that advisers with clearly defined target profiles were more likely to generate new clients from a wider range of channels.

Advisers with defined client profiles were ranked top for client generation via referrals from professional third parties, finance events, and digital marketing.

“When looking to understand the types of clients you’d like to bring under your wing, it’s important to remember that the numbers are often just the tip of a more human-centric financial iceberg,” said Aegon head of Money:Mindshift, Dr. Tom Mathar.

“Each of us has a variety of motivations, values and priorities that guide us through many of the decisions we make in life, including whether we’d like financial advice and who from.

“By building target client profiles that centre on fully formed visualisations of the people and lives you believe you can help, you will be in a much better position to onboard the types of clients you want to work with, deliver a better service as a result, and become more referrable down the line.

“It’s the starting point for a relationship that is more rewarding and fulfilling for both you and your clients.”

NextWealth managing director, Heather Hopkins, added: “We were inspired by a comment from an adviser who said: ‘It’s like setting a financial goal for a client and saying, this is how we’re going to get there.’ That’s exactly the thinking behind this guide.

“In advice, you wouldn’t skip the step of defining what growth is for or how you’ll measure success. The same applies to growing an advice firm.

“A clear picture of your ideal client sharpens your strategy, aligns the team, and makes every referral or marketing effort work harder.”

---