The financial services world is changing. We are in what is being heralded as crunch time for many financial advisers and their firms. This is why, now more than ever, it is crucial you provide value back to your clients.
What is value?
In some of the most traditional aspects of financial advising, value is seen as the money returned to the client. But, with more uncertain economic periods within the last couple of years this has been harder to demonstrate. It’s time financial advisers unhook their thinking from the traditional view of ‘value’, and instead look at the service they provide to their clients.
Why are clients turning away?
It’s easy to point the finger at Robo advisers, cheaper services and increased self-serving when it is the cause to your loss of business. But it can be much more simple then that – Customer Experience.
A good customer experience = loyal customers = more money
Customer loyalty research provided by B2B International has shown most companies lose 45% to 50% of their customers every five years, and winning new customers is up to 20 times more expensive than retaining customers. In fact, a 5% reduction in the customer defection rate can increase profits by 25% to 85%.
All of this talk about customer experience and loyalty is good, but many people reading this blog will be thinking, “how exactly can I make the customer experience better and therefore increase profit?”
The answer is simple; by providing value to your clients, or in this case, providing a new kind of value to your clients.
New value as new opportunities
New value is something your clients are willing to pay more for, and are happier with.
It is very common within the sector to meet with your clients once a year and talk about the funds you hold in management and how they are progressing. In terms of your client, this means they think about you once a year and expect to see a growth in their portfolio. You are not a constant ‘value adding’ thought in their mind, you are something they do on the side which they demand results from.
New value, is making your client think about you often, and recognising the work you do for them and the wealth you generate for them.
How can I provide new value?
Providing new value can be relatively simple if you invest the right tools into your business. One of the easiest ways to provide value to your clients is to become a non-negotiable in their lives, and provide more frequent communication and support in relation to their finances.
There are a number of services out there, like Bill Butler, which allow you to take control of your client experience, some of which will allow you to gain previously unavailable access to your client’s everyday financial information. Through services such as these, it is possible to get insight into your client’s finances and allow every adviser greater access into the client’s financial needs. This provides more incentive for the adviser to get in contact more often, and even allows for greater selling opportunities to the clients, generating additional profit. In addition to this, it will improve the client experience as the client will notice the adviser is appearing to do more work, and communicating with them more.
As we move forward, it’s important Financial advisers change their mindsets from their traditional way of operating, to a world where they provide new value to their clients. This value will allow advisers to generate a better client experience and allow them to retain more clients and therefore increase revenue.