Pathways to Growth
Capital Group’s Advisor Benchmark Study
Three crucial routes to business growth
In Capital Group's Pathways to Growth: 2023 Advisor Benchmark Study, we surveyed more than 1,500 advisors to answer the question: Why did some practices grow 144% more than others? Our research identified certain actions and practice management behaviors that helped drive growth across the board, for all kinds of practices.
We categorized these higher-impact activities within three distinct groupings, or pathways. Understanding what these paths are and how they relate to each other can help you rebalance your time and energy toward growth-related behaviors.
Find out more about each of these pathways below. Then find actionable ideas to help you stand out among the highest growth advisors in our Pathways to Growth article collections.
Client Acquisition
Successful practices make client acquisition a focus and have established procedures for marketing, acquisition and client onboarding.
An intentional approach
Clients are the lifeblood of every practice and key drivers of assets under management (AUM) and revenue growth. Our study showed that practices that made client acquisition a focus and utilized marketing-based strategies gained a greater-than-average share of new clients and achieved higher-than-average growth. Yet, the average practice relies on referrals for 87% of its new clients and engages in limited marketing activity. While new and existing clients are both important sources of growth, our latest survey found the average advisor was slightly more focused on existing clients as a primary growth driver.
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Relationship Alpha
Delivering products and services that support clients in reaching a range of life goals builds confidence, loyalty and deeper engagement.
More offerings delivered in a differentiated way
Certain products and services are “table stakes” offerings for all practices. But our study confirmed that practices offering a broader range of services tied to the long-term goals of clients and their families — from education planning, to charitable planning, to family education and generational wealth transfer — grew faster than those that did not. One key offering correlated to high growth was retirement plans, as practices with at least 25% of AUM in defined contribution plans grew faster.
Products and services offered directly through practice
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Strategic Scale
Building a business takes thinking like a CEO, which means spending more time on the activities correlated to growth.
Spending time smartly
While it may come as no surprise that advisors are dedicating 80% of their time to client and investment management, our findings indicate that allocating more time to practice management has led to higher growth. Seeking areas of efficiency – through technology, model portfolios, processes, productivity tools and team building — and focusing on the highest value activities has led to higher growth practices.
Share of advisors who set defined and measurable goals in the following areas
Source for all chart data: Capital Group Advisor Benchmark Survey, May and June 2023
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Get your copy of our latest Pathways to Growth study for greater insights, including:
- Client acquisition strategies
- Enhanced service offerings
- Strategies to help you scale
- Marketing tactics that set high-growth practices apart
- 5 steps on your pathway to growth
Explore our curated collections of related PracticeLab articles:
Personalized coaching resources
Our virtual and in-person resources can help you forge your own pathways to growth. From webinars, to workshops, to one-on-one consulting, our advisor practice management consultants and wealth specialists can help build your business.