I’m occasionally asked what makes me a successful relationship manager in Private Banking. There are of course a lot of competences, skills and attitudes that come to my mind. Here I would like to focus on a commercial aspect that you as a successful relationship manager should pay attention to
Since you are measured by your commercial success, you always need to
Servicing and retaining clients has an immediate impact on your actual performance. With a skilful analysis of your clients’ needs and a corresponding marketable value proposition of your company you can obtain a good result based on the existing size of your client portfolio. Only if your clients have a growth in their wealth, while not changing their investment behaviour, you can grow the asset base of your portfolio without improving your clients’ experience. However, the majority of Private Banking clients are consuming their wealth, in average by 5 % yearly. Therefore, if the portfolio performance is not above this level, your asset base and revenues will decline, without creating new value added for your clients.
Invest in your education and skill
To increase the share of wallet you need to outperform your competitors and you need to constantly and consistently perform better than you did before. Because you cannot build your success on the assumption that your competitors will perform worse and your client has already allocated his share of wallet with you based on your past performance compared to your competitors. So, aside from keeping the service level, you need to invest in your education and skill set. Make sure you work for a learning company that is systematically improving its value proposition and that you can present it to your clients, thus improve their experience with you.
There are only rare cases, where the portfolio size is so important that you can achieve results for this year in line with your ambitions only focussing on your existing clients. It depends on your portfolio’s profitability, your clients’ ability to increase their assets with you and last but not least your interaction with your clients to increase the share of wallet you get from their assets. Most of you have to acquire new clients to achieve your goals this year or at least next year’s targets.
Invest in the growth of your portfolio
However, client acquisition is a long and time-consuming process that even with an extra effort very rarely give you short term results. Therefore, if you have not started to work on 30 to 60 prospects last year, you will not be able to acquire 10 to 15 new clients this year. In average you will need more than a working day over a year before you can convert a prospect into a client and of course not all prospects will become a client. None the less, you have only limited possibilities to consistently improve your own and your company’s performance and increase client satisfaction. Without systematically finding new clients after a much shorter time than you like your portfolio and revenues will decline. Don’t forget, the results on your acquisition work initiated now, has an impact on your success only next year without the possibility to speed up in a systematic way.
You will get to your prospect list out of your network. To build it up is the longest process and important to maintain. Especially if you count upon referrals out of your network leading to
prospects. Should you not maintain your network you start walking on burned soil, in most cases it is impossible to reactivate your contacts and neglecting your network can even extremely harm your reputation in the market. So you never can start early enough expanding your network and above all treat it as one of your biggest treasure. It is hard work for years.
Invest in the right balance between your activities
Consequently, as a successful relationship manager, when allocating your time, you always keep in your mind to do the right activities now to be successful this year and the following years. If you find a healthy balance between this three groups of activities you will be (under this aspect) successful in a sustainable way.
Do the right activities this year to be successful this year. (short term)
Do the right activities this year to be successful next year. (mid term)
Do the right activities this year to be successful even after next year. (long term)
You can learn in a systematic way how you find a good balance of your activities as well as where you have to become more proficient. There are also technics to reduce your dilemma if you belief, there is not enough time to do everything as much as you should.