Plans, value props, and personas make the difference for top RIA firms
Top-performing firms, which outdo their peers on AUM growth, client acquisition, and new revenue per advisor, were able to sustain those efforts thanks to an intentional approach.
That’s one of the strongest takeaways from a new report published today by Schwab, which delves into different trends and strategies across the RIA space.
Drawing from its 2024 RIA Benchmarking Study, which gathered data from across 1,304 advisory firms representing $2 trillion in AUM, the Schwab report found that the top-performing firms achieved 23.9 percent median AUM growth in 2023, easily above 16.1 percent achieved by all other firms.
Top firms also brought in 42 new clients for the year on average versus just 23 for their rivals, while new revenue for professional clocked in at $67,000 for the best-performing firms, where all other firms squeezed out a relatively meager $39,000 in new dollars per advisor for 2023.
One dimension where top performing firms stood out, Schwab said, came from client surveys, with 43 percent saying they poll clients compared to just 30 percent of all other firms. Firms that collect feedback during interviews with clients also got 26 percent more client assets last year.
The study also showed a strong correlation between performance and planning. Among firms that managed over $250 million generally, just two thirds said they have written strategic plans (68 percent) and succession plans (64 percent), compared to 82 percent and 75 percent of top-performing firms, respectively.
Aside from referrals, marketing was a major driver of new client acquisition at top-performing firms. That’s supported by a formal strategy, including a documented ideal client persona used by 82 percent of top-performing firms and a
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