This blog post originally appeared on the High Performing Practice website. If you want to choose to improve your financial services practice, visit their blog for more ideas.
Last week I introduced the idea of providing value as the one thing to focus on for growth, and I broke down five different areas to study to determine if you are providing value. And in past weeks, I’ve talked about how value is measured.
Although returns against a benchmark are one indicator, value includes so much more than price. Price is a commodity; value is not. And it’s up to us to make sure our clients understand the difference.
To grow, even when the market isn’t doing as well as we’d like, you need to pay attention to how to build value in your business. This will allow you to retain clients, recruit new clients and to remain relevant in the greatest shift from the workforce to retirement that we’ve seen in the United States.
The first hurdle is to change client perception. This can be tricky, but it’s an essential part of driving value. First, we need to help them understand the difference between price and value. Price is how much your clients pay for a financial plan. Price is measured by how much greater return your client receives versus what they paid. That value is the relative worth of your overall relationship.
Of the five components of value we will be looking at, the first one to discuss is excellence. So, how do you define excellence? I believe it’s the art of paying attention to the client. Of making it a priority to understand the client’s entire need—their goal for their financial future. It’s not just asset management or insurance. It is the entire breadth of a relationship. Excellence means a willingness to collaborate with others on areas that aren’t your expertise. It’s taking the time to look under every rock, leaving no stone unturned.
I’d also like to discuss the second component that drives value, and that’s consistency. As a student basketball manager at Indiana, I was around Coach Knight for four years. His game preparation was legendary. And his game preparation was consistent. Just as Coach Knight followed the same process for each game, you need to follow the same process for each of your clients.
Consistency is important not only from a regulatory standpoint but, most importantly, it’s important from a referral standpoint. If your clients understand what their referral will experience, they’re more likely to refer you to people who they know, like and trust. It allows them to set the expectation for their friend or family member.
Consistency gives your client confidence. It gives your staff confidence. And it increases your chances of success while decreasing the chances that anything important will be overlooked.
When our clients are confident in our ability to drive value, they will find it easier to make the decision to stick with you.
© 2018 Ash Brokerage LLC.