Creating a brand for your business is no longer optional for advisors in light of recent regulatory changes such as Fund Facts and the Client Relationship Model (CRM2), according to Doug Towill, senior vice president, strategic business development with Toronto-based CI Investments Inc.
“[Creating a brand] used to be nice for [advisors] to do,” said Towill, speaking at the 12th annual Institute of Advanced Financial Planners (IAFP) Symposium in Calgary on Sunday. “It isn’t nice to do anymore, it’s need to do.”
Regulatory changes, such as CRM2, mean that clients will now know the exact dollar figure they pay for your business, said Towill, and as such they will want to know the value they get for those fees.
“What you need to be able to do better than anyone else you compete with is convey your value,” he said. “[Clients and prospects] think your business models are all exactly the same. So it’s up to you, the professional in the relationship, to have a discussion around your value.”
To find your brand and easily communicate it to prospects and clients Towill suggests following what he calls the Brand Framework, which is outlined below:
> B = biography and business
Clients want to know who are as an individual, says Towill, and how that translates to a business model and clientele they can relate to.
“Craft stories about yourself that will help people identify with you,” said Towill.
> R = reasons
Let people know why you are in this profession and run your business as you do.
“There are different reasons [for why] we got into this business,” said Towill “What are the philosophical underpinnings of your business model?”
For example, what reasoning or beliefs dictate the services you offer or the way in which you treat clients?
> A = actions
Be clear about what you do as a financial planner.
“People want to know the processes you use,” said Towill. “They want to know you’re professional [and] you have a financial planning process for how you build portfolios.”
> N = niche
Talk with clients about who you serve, said Towill, and be able to explain your ideal client profile.
You don’t have to be so specific as to mention an age group or the area of the city you live in, says Towill. Instead, describe a group of people with similar planning needs.
Towill used the example of an advisor in the U.S. who works with individuals who have recently lost a family member to an illness, such as cancer, or whom themselves have been diagnosed with a terminal disease.
> D = difference
Tell clients what makes you different from your competitors, said Towill, and what makes your business remarkable.
“Remarkable things get remarked about,” he said, “And what do we call a remark in this industry from one person to the other? A remark is a referral.”