How does this affect the way you do business? It means you have to be sharper, quicker and more focused in your marketing efforts to identify and attract the right types of clients for your business -- and to keep the relationships strong.

Here are six steps to attracting profitable clients to your business.

1) Remember that marketing is all about connections.
Webster's Dictionary defines marketing as an aggregate of functions involved in moving goods from the producer to the consumer. That's the textbook version. The real world definition is more about connections. Every communication you have is a connection with someone else. Successful marketing, then, is the sum of the positive connections you make with your target market. This includes phone, fax, mail, e-mail, advertising, networking -- any communication, no matter what form it takes. From the simplest "hello" and handshake to a no-holds-barred multimedia advertising campaign, every impression has an impact on your audience. Hopefully, it's a positive impact.

2) Define your business philosophy.
The most loyal clients will be those whose business philosophy matches your business philosophy and who have needs you can meet with your products and services. Your business philosophy is defined as both the expertise you are known for and the manner in which you deliver your products and services. What is the business philosophy of your investment firm? Has it established itself as the leader in prime investment products? The specialist in retirement planning? The expert in pension funds? Are you personally known for giving individual attention or automated services? Those people who have a need for your specific expertise and who value your service policies will be attracted to you.

3) Make it easy to do business with your firm.
Actions speak louder than words. The most important factors in developing lifetime relationships are delivering outstanding customer service and making it convenient to obtain your products and services. Here's where you have a major advantage over your cyberspace competition. You can have face-to-face meetings with your clients. You can take them to lunch. They can reach you by phone. It's a known fact that clients are loyal when they receive exceptional service. How do you go the extra mile for your clients? Can they reach you after normal business hours? Do you send birthday cards? Do you personally walk through any tedious and confusing paperwork with your client? Remember: Your relationship with your client is directly proportional to the customer service you offer.

4) Clearly define the products and services you offer to your client.
When a prospect is choosing between you and your competition, they will make their decision based on the benefits offered. Can you help them attain their financial goals? Can you help them define short-term and long-term investment strategies? How knowledgeable are you about the financial products you offer? Can your investment advice save them money on their taxes? It's important that you clearly communicate the features of all your products and services and, more importantly, how these products and services will benefit your clients. Your products and services are not differentiated from those of your competition until the customer understands the difference.

5) Identify the prospects that understand and appreciate the value of what you offer. There are five general types of prospects. The prospects that fall into the first three categories will never turn into profitable business for you.

Nonbelievers. These clients have probably been burned in the past with another financial planner and are skeptical of your advice. This skepticism will lead them to seek advice from several financial planners, and then give you only a small portion of their financial assets to manage. These folks will tend to complain about your service or your commission or spend an unusual amount of your time on financial questions without taking any of your advice.

Penny Pinchers. These clients want everything for free. They want the best of your products and services without paying any fees or commission. They are looking for your investment advice but don't have enough assets to develop a long-term investment plan. They are typically short-term investors.

Migrators. These clients are more interested in the hottest new financial product currently outperforming the market. They will switch their investments for short-term gain even if it means migrating to another investment firm that offers a product line that currently outperforms some product in the portfolio you are managing for them.

Fence Sitters. These clients are open to developing a long-term relationship with you. They're willing to listen to what you have to offer. If you can clearly convince them that you have superior products and services, they may become lifetime clients. They will sit on the fence, however, until you have convinced them that you can fulfill their needs. But once they give you their portfolio to manage they'll value your service and make loyal customers.

Advocates. The most profitable business you can have is a client base of advocates. These clients not only value your products, services, time and expertise, they also tell other people about you. These are the folks that trust and respect you and are always eager to hear about additional products and services relevant to their business.

6) Determine the real needs of your client.
It's important to constantly keep an open dialogue with your clients. Ask them how you can fine-tune your service to better fit their needs. Ask them if they experience any challenges in working with your firm. Ask them what they would like to see your firm do differently in terms of products and services. Your client feedback is the most important barometer in gauging the way in which your products and service are perceived.

The most important thing to remember is that every time you communicate with your client you wear a marketing hat. Successful relationships are built upon positive connections. And profitable business is the cumulative effect of a lifetime of positive connections!

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