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The One-On-One Approach

February 28, 2013

Edward Jones is a full-service brokerage firm and private partnership that caters to around 7 million investors. It uses a personalized one-on-one approach through its more than 12,000 financial advisors in the U.S. and Canada. The company believes that the best way to serve customers and retain them is through one-on-one face-to-face approach.  To be able to do this means they must be present in many locations and have a good number of personnel.  The local advisors also have support from the 5,000 associates in the home office who offer the experience, research and expertise.

The company is based in St. Louis, Missouri. It spends around $100,000 dollars to turn a career-changer or a graduate into a licensed advisor.  These persons then open small offices and build business from the ground up. It caters mostly to Mom & Pop investors.  In 2011 it earned $485 million of profit based on $4.5 billion net revenue with it more than 7 million clients.

The one-on-one approach and a period of learning curve for a new advisor has its disadvantage of taking more time to ramp up business. The client served also does not have that large of an asset. Nevertheless Edward Jones has a market niche which has allowed it to be profitable and growing while serving those who may have otherwise not gotten this form of financial service.

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