In 2015, financial advisors need to focus on adding value to their client relationships and demonstrating that value.
The second phase of the client relationship model (CRM2), whose first stage was implemented last year, requires that fees and security performance are made more transparent to clients. Your challenge will be to balance that technical information with reinforcement of the services and expertise that you provide.
Three practice-management and marketing experts share ways to add value in 2015:
> Rediscover your clients
You go through a discovery process with new clients, but don’t forget the importance of learning more about your established clients, says Larry Distillio, director of financial advisor business management with Mackenzie Financial Corp.
“Clients’ lives change along the way,” Distillio says. “We need to know our clients better than anyone on the street to help reinforce relationships and to build client loyalty.”
Even if you have known a client for many years, ask if his or her values and top financial concerns are the same as they were when you first met. See if your client feels his or her financial plan still supports those objectives. This discussion might inspire the client to tell you that vision has changed, Distillio says.
For example, when you created a retirement plan for a client 10 years ago, you based it on her plan to spend her later years in her home province near family. However, your client might have decided she wants to travel once she stops working. You can then start a conversation about how you can help her make this goal financially viable.
> Get feedback from clients
If you want to increase your value to clients, discover what they value about you, says April Lynn Levitt, a coach in Toronto with the Personal Coach.
Feedback is a critical part of understanding what differentiates you from other advisors and increases your worth in your clients’ eyes. It also presents an opportunity to see what aspects of your practice or the relationship might need some work.
How you gather this input depends on your preference, Levitt says. You may opt for a formal process through a client advisory board or five-minute discussions with individual clients during review meetings.
> Create content to prove your value
You regularly demonstrate your experience to clients through meetings and the financial plans you create. If you find a way to express these skills online or in print, you can reinforce your expertise in a way that allows clients and contacts to share your work, says Michael Wickware, principal at Wickware Communications in Toronto.
Whether you write articles for your e-newsletter, maintain a monthly blog, or are featured in local media, you are creating a presence that can usually be shared digitally. This can lead to total strangers learning about your practice.
Also, keep in mind that content is not limited to the written word. If you are comfortable in front of a crowd, hold events for clients and their friends or offer to give talks to local groups and associations that represent your target market.