Segmentation Critical When Targeting RIAs

In the “Effectively Targeting RIAs” report issued by research consulting and benchmarking firm kasina, study researchers found that rapid growth in the RIA market is creating valuable opportunities for asset managers of all types and sizes. But to take advantage of these opportunities, firms looking to market products and services to registered advisers must consider their diverse needs, as well as the best ways to package and deliver the support advisers value most, the study shows.

Among the report’s chief recommendations for successfully selling services to RIAs: Worry more about the types of products the adviser is likely to use, not just the level of assets he or she controls. Sales staff should also consider an asset manager’s book of business, due diligence processes, and investment philosophy before creating a sales pitch or targeting strategy.   

“Asset level is meaningless if the manager’s products don’t match the RIA’s investment preferences or processes,” said Jenny Chu, report author and kasina senior research analyst. “Managers must strategically profile RIA prospects to … craft a successful pitch.”

Other recommendations in the report include developing a sales staff dedicated specifically to the RIA space. This is mostly because many advisers can’t be reached through traditional modes of external wholesaling. 

The study also provides recommendations for leveraging data to capture and target high-potential adviser prospects, data on factors that advisers rely on and look for in their fund selection processes, and other insights on market segmentation and sales force development.

More on the study and its findings can be read here.