From the inaugural issue of 401(k) Specialist magazine: One of the rewards (yes—rewards) of involvement in the 401(k) industry is client events. Charlie Epstein does it right. Here’s how to have fun while connecting with new business opportunities.
Charlie Epstein can change your view of client appreciation events in a millisecond.
Epstein, a dynamic and animated advisor based in Holyoke, Mass., has a contagious energy. Whether waxing about the day’s mail (“I just received a favorable ruling from the IRS for one of our clients so I know it’s going to be a GREAT day!”) to tirelessly sharing his common sense approach behind making a client feel valued, he quickly brings you into his world.
He founded Epstein Financial Services in 1981, has written two popular books on retirement and has built a following as “The 401(k) Coach”. However, you will never see him hosting a dry, PowerPoint-filled seminar in a conference room for clients.
“We will never hold a session on 401(k)s, investing or the economy. Why? Because that is what our competition does,” Epstein declares. Instead, he focuses on cornering the unique, you’ve got-to-be-a-part-of-this, events.
“The majority of advisors do not have a thoughtful process for client acquisition,” Epstein begins. “They also do not think strategically about how to make existing clients feel special.”
Epstein feels that advisors must go further past the newsletter and yearly birthday cards. Every month, firms should make their clients feel valued. He refers to it (complete with Rod Stewart melody) as the “Have I told you lately that I love you?” strategy.
The heart of Epstein’s events is bringing people together and there is never a hard sell involved. “Our gatherings connect clients to each other and to their community. It helps forge relationships and many times, an invited client has asked to bring a friend who has then turned in to a new client for us,” he says of the often organic referral process that occurs.
Last fall, the firm brought on Lorie Epstein to manage some of the firm’s life insurance activities as well as having the title of Director of Client Appreciation. Though they are husband and wife, Lorie interviewed for the job and has spent her long career in mortgage underwriting and title insurance.
“I was very comfortable in my last job which I had been at for 17 years. There was definitely some apprehension taking a new position after all that time and then on top of that, coming in as the boss’s wife,” she laughs.
Epstein Financial and the related 401(k) coaching services employ just 12 people and yet they manage an impressive event calendar.
Though the firm had held memorable client events over the years, the activities are clearly moving to a new level with a full-time employee focusing on the efforts.
There is also a heightened awareness to gender target some of the events.
Recently, the firm staged “Fabulous Females, Fabulous Shoes,” which drew about 45 women who came wearing what Lorie calls that “pair of impulse shoes we all have bought but never can find the occasion to wear.” Guests were also asked to bring a bag of groceries for the local food bank. Many of Epstein’s mixers include a charitable aspect as he stresses an importance in supporting their community.
Along those lines, the firm is working on taking a group to a small business that specializes in the old school, somewhat indulgent, barbershop that Epstein recently experienced in Italy.
“It was the full treatment: hot towels to the face, lathered cream, a straight razor shave, the works! So I decided we should transplant that idea here and host the event at a local shop and pa y for it all ourselves. It’s a win-win. Clients get to interact with each other in a unique environment and we are exposing the business to a potential new clientele base,” he adds.
Then there was “Cigars under the Stars” that featured cognac, spirits and of course cigars, for approximately 35 people and ran about $800, with the cigars being the major expenditure. Charlie recalls that the bring-a-friend referral worked again as an attorney who had come asked Epstein to review his practice’s 401(k) plans.
The Epsteins host many affairs in their own home with Lorie handling much of the cooking herself and Charlie often tending bar.
“Anyone can hire caterers but the compliments and the appreciation are endless when you make everything yourself,” she notes. It doesn’t have to be gourmet or from scratch but presentation is key.
“For the Cigars event, I added a bit to Trader Joe’s roasted tomato soup and then turned that into tomato soup shooters by putting it in shot glasses. And then I served them along with small grilled cheese points. The guests were wild about it,” she says.
Often they will hire local teenagers to help (white shirt and black pants equals instant wait staff), but still the costs are minimal when compared to hiring a full catering experience.
There’s been Mad Men parties, Cinco de Mayo fiestas (Lorie made 200 enchiladas for that one) and one of their most popular endeavors, now in its sixth year, the Kentucky Derby. Guests arrive in full Derby attire and hats that would make the Bluegrass state proud.
Their largest gatherings bring 125-150 people a couple times of year. Mostly they range from 15-40 people. When possible, the Epsteins prefer their home as it gives an intimacy that is palatable. “Guests are relaxed when they are in your home and more open to interact with others,” says Lorie. Adds Charlie, “Our events are low key, but powerful”.
Annually, the firm spends $20-25,000 on the events but knows that the return is worth it. From making clients feel valued to connecting them to other business opportunities to new clients coming on board, the effort and expense has more than paid for itself.
Lest your firm lack a closet chef or coffers to fund events, Epstein’s approach is accessible to any advisor. One idea that Lorie came across is to contact a local Williams-Sonoma, which will come to your home or location for free and teach homemade pasta making.
CLIENT ACQUISITION
They tell of a recent outing by a colleague who contacted a nearby Tesla dealership to do a test-drive event of the specialty cars for a group of clients.
The firm will also bring in 401(k) record keepers, money managers or mutual fund companies as co-sponsors. “We allow them ten minutes at the start of the program to present to the attendees. We coach them to make sure that what they share about their business provides real value to the group and isn’t a canned sales pitch,” notes Charlie.
Epstein has been on the other end of partnering with professional services as well. He recalls an event where a local doctor was presenting a high-end continuing education session, complete with four-course wine pairing dinner for surgeons. Epstein paid $5,000 to be part of it and had 15 minutes to talk about his firm’s services. The investment paid off immediately with new clients who recognized the credibility he held by being an invited presenter — and by connecting to the surgeons with retirement information that was important to them.
Previously, Epstein’s company and an accounting firm had rented out a theater and held a special movie showing for their collective clients, which numbered in the low 400s. Not only was the cost shared, the crossover networking was successful because there was implied testimonial of his firm to the accounting clients, and vice versa.
Another idea centers on identifying local authors or celebrities who can “headline” an event. Charlie suggests compiling a list of area celebrities and authors (“we couldn’t believe how many writers come from our surrounding towns,” he says) that might be open to participating in the right gathering.
They had heard about actor John Ratzenberger of “Cheers” fame who champions a program called “Nuts, Bolts and Thingamajigs” that aims to inspire “the next generation of manufacturers, inventors and entrepreneurs.” Ratzenberger was able to share the initiative’s importance with a host of targeted owners of manufacturing companies and in turn, the guests got photos with him and enjoyed a memorable evening.
The firm is eying local entrepreneur Tracey Noonan, whose success was boosted by a run on the popular TV show “Shark Tank,” and her compelling story of building Wicked Good Cupcakes. Pair her with a cake decorating class and voila, you have another signature Epstein moment.
The firm brought in Joseph Michelli, author of “The Starbucks Experience, The New Gold Standard, and Prescription for Excellence” (Charlie’s always been a fan of the coffee powerhouse’s story and brand) for a presentation that was coupled with Starbucks employees demonstrating roasting and tasting techniques. Epstein says to find an interesting local author (“many are desperate for an audience”), an intimate coffee shop that will often provide space for free and you have the makings for a minimal cost, turnkey event.
Charlie Epstein feels his philosophy in business, and client events, is simple: you need to make deposits before you can make withdrawals.
“People have choices. You need to deposit interesting, unique experiences in their lives. When you do, it tells them how you and your organization want to be perceived. The only limit is your creativity.”
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
Charlie,
You are a gentleman, scholar, and a true pro. Thank you for all of your help. Great article!!