When RIAs see that their fastest-growing competitors have more than double the conversion rate of leads to customers, they naturally ask themselves, “What do I need to do to get to their level?”

The Herbers & Co. Service Market Growth Study 2023 found that companies rated as the best organic growers successfully close 7 out of 10 of their prospects, compared to the 30% close rate for an “average” consulting firm. It found that these companies offer additional services, such as business, cash flow and education planning, as well as real estate, healthcare, tax, insurance and retirement issues.

The importance of services that go beyond typical financial advice was recently highlighted in a AssetMark Surveywhich found that clients are more likely to switch to their advisors if their advisors do not offer comprehensive services. Undoubtedly, RIAs that drive organic growth offer a wide range of additional services such as insurance risk management, tax planning, estate planning and more.

As firms make their way to the top of the expanded services market, the key to success is mastering effective collaboration across all offerings to ensure the client receives comprehensive and thoughtful advice. Think of these services as different specialties in a high-end restaurant, where cultivating the guest’s taste experience is paramount to success. The people responsible for wine, cheese, dessert, meat and sauces must rely on one another to achieve true synchronization of flavors. Likewise, RIAs must ensure that everyone involved in a client’s financial planning is in constant communication, fostering a true culture of collaboration.

Our industry is used to operating as independent entities, but to provide our clients with the best financial future, we must shift to a partnership mentality that goes beyond a traditional vendor relationship. Just as a five-star restaurant can deliver a delicious experience by combining all the right flavors, a shared understanding between life insurance, estate planning and tax professionals provides the collective, world-class services clients crave.

Partnership is synonymous with success

As with any relationship, it takes two to succeed. During my two decades in the industry, I’ve worked with RIAs of all sizes to integrate risk management insurance solutions into their core offerings. The most successful relationships I’ve seen are with RIA firms that offer us a seat at the planning table and invite us to participate in their client conversations rather than have us walk around invisibly in the background. To support this, we have a thorough integration process that we repeat across all firms, and we’ve seen our partners increase organic growth by 2% to 4% in their first year of working with us.

Growing that partnership means aligning with advisors and working as part of their team. All too often, we see advisors not knowing where to start when it comes to effectively integrating risk management into their broader practice. When we work together—and are on the same side of the table—it is significantly easier to make an impact with the end client. When advisors seek to involve service partners in their work, it is important to ask the right questions (How will we work together? What if my client has questions? How do we demonstrate the impact of our work?). This effectively lays the foundation for a strong relationship.

The customer experience is also important for your partners

It’s possible to get so caught up in your growth strategy that your firm loses sight of the client relationships that actually drive your growth. Putting the client first means your service partner has to care enough about them to do the work that needs to be done. I find that the most in-demand services, like insurance planning, estate planning, or tax planning, are too much work for specialists to just take on assignments. Building that kind of relationship requires a high level of commitment and a team that’s willing to step out of the “vendor” box and become an extension of the RIA. It’s important to have an unbiased process that gives the advisor confidence that we’re truly working together in a partnership and not pushing a product for our own benefit.

To achieve meaningful growth, all strategic partners must prioritize client relationships by acting as a dedicated extension of their business. Their teams must be willing to collaborate with you and each other, providing a fiduciary and unbiased approach that genuinely supports the client’s interests.

Chad Druvenga is CEO of CBS Brokerage.