Example Client Personas

In this article, we walk through some common client personas you will encounter, what they mean, and outline ways that you can proactively use this information to personalize the advice you give.

Let’s meet three fictitious clients - Penny, Frank, and Daniel - and look at their results from the risk activity:

First, we’ll look at Penny, who has a Moderately Aggressive risk profile.

Penny has an above average Attitude to Risk and an average Sensitivity to Loss, making her a great match for growth-oriented portfolio. With her risk profile, Penny is unlikely to be bothered by market volatility and is worth reengaging for additional investment opportunities when the market drops.

Next, let’s look at Frank, who has a Conservative risk profile.

Frank has a low Attitude to Risk and a high Sensitivity to Loss, meaning he is most suitable in a conservative portfolio. With his risk profile, Frank is likely to be bothered by market volatility and require extra attention and reassurance from you during market drops. With his conservative risk profile, Frank is also a prime candidate for insurance and annuity products.

Lastly, we have Daniel, who has an Aggressive but Loss Averse risk profile.

Daniel has both a high Attitude to Risk and a high Sensitivity to Loss. This means that while Daniel is comfortable taking on a high amount of risk in his investments, he also feels losses acutely when the market drops. With a client like this, it is important to address their high Sensitivity to Loss in the context of the portfolio Daniel selects. Even though Daniel’s Attitude to Risk would indicate that he’s better suited for a growth-oriented portfolio, it is important to properly frame expectations of market volatility if he were to choose a growth-oriented portfolio. With a high Sensitivity to Loss score, it may also be worth discussing insurance and annuity plans with Daniel.

The below chart shows where Penny, Frank and Daniel sit on a distribution of 10,000 real client risk profiles, with Sensitivity to Loss plotted on the x-axis and Attitude to Risk plotted on the y-axis.

Identifying where each client sits in this distribution is useful for proactively tailoring the advice you give them. With this data, you can prioritise which clients you should call first during market volatility, as well as personalise the marketing and communications you give to each client based on their risk profile. 

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