Financial advisors should think about credit cards, donuts and pedometers when considering improvements to the way they communicate with their clients, Julie Littlechild told a roomful of financial advisors in Seattle on Sunday. Littlechild, president of Advisor Impact Inc. in Toronto, spoke to attendees of the Financial Planners Association annual conference.

Littlechild was referring to the way some companies, such as Apple Inc., Tim Hortons Inc. and Fitbit Inc., not only engage clients but involve clients in what she calls “co-creation of value.”

Littlechild cited Apple Pay, to be launched next month — which will enable users to make purchases using their iPhones, without opening an app — as an example of co-creation of value.

“Instead of just looking at the product,” Littlechild said, “Apple said, ‘Let’s look at the way people operate and then build a product that reflects that’.”

As another example, she pointed to Tim Hortons’ promotion in which customers are asked to participate in developing the company’s next donut product.

Fitbit is a pedometer that does much more than measure how far a user runs or walks. It allows the user to interact with the device; users can set goals while the device holds them accountable and rewards them for reaching those goals.

These are examples of companies improving their service offerings by exploring the way their customers experience their products. Financial advisors must do the same in order to differentiate themselves — and survive.

How can you bring co-creation of value into your practice?

“We can study clients,” Littlechid said, “or we can involve them. The challenge is to come up with ways to involve the client in all aspects of service delivery.”

The first step is to assess your client communication plan. That assessment — and the improvements you make — can be broken down into a series of steps:

The first is understanding what is important to clients. It is no longer enough to gather feedback, Littlechild said. You need to dig deeper and get detailed information, such as a client’s preferred communication style.

Second, ensure that your client meetings have relevance to the client, which means knowing what is important to that client.

Third, involve your clients in setting the meeting agenda, Littlechild said. Some advisory teams, for example, hold meetings prior to client reviews to brainstorm ideas to include in the agenda. A junior advisor then calls the client to find out if there are any other topics the client would like to address. Some advisors send a copy of the meeting agenda to the client ahead of time so the client can study it and add his or own items of concern.

Fourth, have a deeper conversation — the kind you would have with a new client. This step goes far beyond the standard questionnaires, in an effort to learn about the client’s hopes, dreams and fears. Ask questions such as:

  • “If I ask you to think about retirement, what are the three things that pop into your head?”
  • “If I had a magic wand, what are the three biggest things I would solve for you?”
  • “What is the best financial decision you ever made?”
  • “What is the worst financial decision you ever made?”

The fifth step is to make your communication interactive. That means incorporating technology and making it “fun.” Consider installing a large TV screen to display your presentations and using applications that combine infographics with creative imagery.

“The challenge is to move through the entire process as the client,” Littlechild said. “Specifically, from when they pull up to your office, to what information they had before the meeting , to what happens during the meeting and how you follow up.

“Take your ‘advisor’ hat off and ask yourself, ‘How do I experience this? Am I [as the client] co-creating it or is it or is it directed at me?'”