“… Because we’re worth it” Establishing the right image and gaining client commitment...

“… Because we’re worth it”Establishing the right image and gaining client commitment through effective client engagement and education

Lawrence Emm

Business Change Specialist

For financial advisers only

TODAY’S AGENDA

Context

Communicating with existing clients

Re-establishing value and worth

New client commitment

Tools for the job

Next session


THE COMPLETE PICTURE

PEOPLE CAPABILITY

PROCESSAND

ITPRICING

SERVICE CONTENTPROPOSITION

CLIENT NEEDS

ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY


THE CLIENT’S PERSPECTIVE

Clarity Value for money Tangibility Straightforward Not over complicated or complex or full of jargon Accessibility Able to speak to people who understand me


KEY QUESTIONS

Which clients do we want to retain? Which clients do we want to lose – if any? Which clients are profitable? Which clients are unprofitable? Do we have the right type of clients? Are clients getting the correct level of service? Are clients paying us for our true value and worth? Can we articulate and explain our value and worth?



CLIENT RE-ENGAGEMENT PROCESS

TRANSITIONING EXISTING CLIENTS

• Only consider existing client engagement when you have established and documented the ‘new client experience’

• Stay focused on profitability• You must be able to articulate and explain your value and worth in a way the client

can clearly see the benefit of continuing to work with you and pay you


CLIENT CATEGORISATION AND SEGMENTATIONUse your new client service titles

Analyse existing client data in terms of income against costs – where data is available

Categorise existing clients – aim to have 60% of existing clients comfortably fitting into one of new service propositions

Segment 40% remainder as follows: highly profitable – Platinum Superstars! currently unprofitable – but have potential to be profitable currently unprofitable – unlikely to have potential to be profitable do not have sufficient data - profitability or potential


SETTING THE RIGHT TONE – CLIENT REASSURANCEDear Mr Williams,

You will be aware from recent press and media reports that significant changes are scheduled to take place within the financial services profession from January 2013. Here at Tollarday Wealth Management you will be pleased to know that we have operated ahead of these industry benchmarks for some time and pride ourselves that all our advisers, and a number of our client management team, are already qualified to Chartered Financial Planner status which is higher than the new professional standard set by our regulatory body.

At our next review we will guide you through how we intend to simply formalise the way we have worked in partnership with you over the last 8 years while managing your tax and estate planning. We will also discuss how you will continue to receive the same high levels of ongoing advice and service in the future as one of our valued clients.

If you have any questions in the meantime please do not hesitate to call me on 01234 567890.


CLIENT CONTACT STRATEGIES


Typically these may include: Seminars Client review meetings Telephone Email Letters Social media

Remember that some clients will need to have several approaches using different contact strategies to effectively communicate the need for change and gain their commitment.

CLIENT CATEGORISATION AND SEGMENTATION

CURRENTLY UNPROFITABLE BUT WITH POTENTIAL

Use the ‘campaign’ approach highlighted in later slides

Highlight benefits of client choosing you as their trusted adviser

Enclose client services leaflet

Highlight benefits of Mid-Range option and routine reviews and pro-active services

Explain that client has choice and now needs to decide how want to work together (or not) in future

Ask client to complete ‘tear off slip’ and return or call office to discuss


CLIENT ENGAGEMENT – PLANNING TEMPLATE


Activity What are

you trying

to achieve?

(Objective)

What is the

activity

about?

(Proposition)

Who are

we trying

to

influence?

(Target)

What do we

want them to

know?

(Key

Messages)

How will we

communicate?

When will this

happen?

(Method and

Timing)

Who will do

the work

and what

will it cost?

(Resource

and

Budget)

How will

we know

if it has

worked?

(Measure

of

success)

CLIENT ENGAGEMENT – PLANNING TEMPLATE


ENGAGING CLIENTS BEYOND 2013

Source: Cerulli Associates

FPA Principal Member Survey November 2002

How do advisers spend their time?

Financialdata

gathering

Planningand

preparation

Review &ongoingservice

Relationshipmanagement

Productadvice

Researchand

administration

Dataanalysis

Present plan

Where advisers spend their time

What clients value

... and where do most clients perceive value?


Company

Clients

PeopleInvolve and Organise

Deliver Reality Set Expectations

“BRAND Tri-angle”

“BRAND is every part of the business that

touches the customer”

You

Para-Planners

Website

Cars

Fellow Advisers

Documents

Offices

Communications: politeness and efficiency

Initial data gathering

Detailed fact finding

Research, report and

recommendations

Transactions and “new business”

Revenue and commission

management

Ongoing service delivery

Service: From client expectations to consistent delivery

Stage Three

RECOMMEND AND

IMPLEMENT

Stage Four

REVIEW AND

RETAIN

Stage One

CLIENT ACQUISITION

Stage Two

GATHER DATA AND PREPARE

RECOMMENDATIONS

Client “Story”

To demonstrate WORTH and

BENEFIT


Premier

Select

Assist

ABC Wealth

ABC Planning

ABC Advice

Platinum

Gold

Bronze

XYZ Elite

XYZ Standard

Client Select

A Class

B Class

C Class

Financial Consultancy

Financial Planning

Financial Advice

ADVICE AND SERVICE PROPOSITIONS

Financial Wealth Management”We provide financial consultancy and proactive financial management for business and private clients with complex affairs – we will work with other professionals to create and manage a bespoke, comprehensive and evolving strategy”

Financial Planning“We provide straightforward financial advice to make sure you have the right advice and product solutions for your immediate and future needs”

Financial Advice“We will arrange to transact particular financial products at your request”



A CHOICE OF SERVICE PACKAGES

6 KEY QUESTIONS

Why will clients come to us?

What will we do for them?

What and when do we need to do? – service content

What information will we provide – when?

Right people -right place - right time?

What processes and IT do we need to make it happen?


HOW DO WE WANT TO BE SEEN BY CLIENTS

PREMIER WEALTH CONSULTANTS

What do we do?Expert financial and tax planning to enable the long term management of investments through a detailed plan that is regularly reviewedWho do we do it for?Private clients with over £500kHow do we do it?Working with other professional advisers from a consultancy perspective to use our in-house technical skills and expert software to pro-actively manage clients’ affairsWhere do we do it?In traditional style offices in the “professional quarter”


SIMPLICITY INSURANCE ADVISERS

What do we do?Streamlined advice in one meeting to make sure people have the right policies for their needsWho do we do it for?Families and working people between the ages of 30 and 50How do we do it?Straight forward fact find and product/fund selection software – automated reports and other documents

Where do we do it?In our high street “shop-front” office or in people’s homes

We will ensure we understand what each of our clients want

We will always explain to you the choices and options you have

We will explain our approach to planning, research and analysis

We will show you what is required to make it work for you

We will provide regular reviews and recommend only appropriate changes

We will help you to think about what is important - what you want to achieve, fix or avoid

We will explain all the choices of levels of advice and service available and help you make the right decision

We will only do what is right for you – we will arrange and implement any necessary solutions such as products, funds or trusts – we will agree ongoing services and contact

We will carry out research necessary to ensure you receive the best advice – we will draw up a plan to make everything crystal clear and logical

We will do what you have asked us to do and meet as often as you have agreed and provide other ways of keeping in touch to keep you and your plan up to date

CHOICEFlexible options

CLARITYA succinct picture of

where you stand

CLEARroute to follow

CERTAINTY so that you stay

on track


This is This is whatwhat we do … we do …

This is This is howhow we do it … we do it …

These are the benefits to the client – these have These are the benefits to the client – these have real valuereal value

CLIENT ENGAGEMENT – CLIENT COMMITMENT

Understanding what our clients want

We will help you to think about what is important, what you want to achieve, fix or avoid

We offer all clients an initial half-hour meeting at our expense in order for you to see if there is a fit between us and if you like the approach we take.

We will gather some basic information, answer your questions about how we might work together and explain each of the stages of financial planning.

We can give you examples of the work we have done with similar clients and an indication of the typical costs involved.


THE LANGUAGE OF VALUE AND WORTH


NEW WORLD

“AT OUR EXPENSE”

VALUE – WORTH

COMMITMENT

ADVICE

FINANCIAL PLANNER

FEE – SERVICE CHARGE

CLIENT MANAGER - EXECUTIVE

“USING COMPREHENSIVE TOOLS AND EXPERTISE …”

ROUTINE AND AGREED SERVICING

OLD WORLD

FREE

COST - PRICE

NO OBLIGATION

SALES

ADVISER

COMMISSION

ADMINISTRATION SUPPORT STAFF

“EASY 5 MINUTE JOB – SIMPLE AND STRAIGHT FORWARD”

UNSTRUCTURED, AD HOC CONTACT

THE CRITICAL POINT

The initial engagement meeting will become the most important opportunity to establish:

– Value and worth– Clear expectations– Gain client commitment


CREASTING THE RIGHT IMPRESSION


A DISTINCT CLIENT ENGAGEMENT PROCESS


UNBUNDLING THE CLIENT EXPERIENCE

Stage 1

Stage 2

Stage 3

Stage 4

Client Engagement

Strategy and Planning

Service

Implementation

Information gathering – Risk Analysis etc.,

Analysis and Product research

Lifestyle analysis and report

FIXED OR MINIMUM FEE OR HOURLY RATE

Present recommendations

Agree asset allocation

Applications - Reasons why

FIXED OR MINIMUM FEE

Update Lifestyle analysis

Recommend change (or no action)

FIXED OR MINIMUM FEE OR HOURLY RATE

Information gathering

Present and negotiate client propositions

Agree basis for working together

INITIAL 30/40 Minutes “AT OUR EXPENSE”


A CLIENT SERVICE AGREEMENT - EXAMPLE



SUMMARY

Clients will pay explicit advice and service charges (fees) only where they can see tangible value and worth Articulate value – not price and cost Don’t over-promise (and under-deliver) Use website, client service literature to reinforce your expertise, value and worth Now is the time to develop and practise – 7 months to R-Day

REHEARSE AND PRACTISE

Businesses need to move from concept to implementation by engagement and buy-in of all staff.

By necessity this will mean significant investment in rehearsal, practise and review as well as the business setting clear expectations and managing performance.

We can learn from the experiences of Heathrow T5 …


This presentation is designed for and directed at professional financial advisers. It should not be relied on by consumers.

This document is based on Skandia’s interpretation of the law and the HM Revenue and Customs practice as at January 2012. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change.


www.skandia.co.uk

Calls may be monitored and recorded for training purposes and to avoid misunderstandings.

Skandia provides you with access to its investment platform, known as Skandia Investment Solutions. Within this platform you can open an ISA and Collective Investment Account provided by Skandia MultiFUNDS Limited, and a Collective Retirement Account and Collective Investment Bond provided by Skandia MultiFUNDS Assurance Limited .

Skandia Life Assurance Company Limited, Skandia MultiFUNDS Limited and Skandia MultiFUNDS Assurance Limited are registered in England & Wales under numbers 1363932, 1680071 and 4163431 respectively. Registered Office at Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom.

All companies are authorised and regulated by the Financial Services Authority with FSA register numbers 110462, 165359 and 207977. VAT number for all above companies is 386 1301 59.


“… Because we’re worth it” Establishing the right image and gaining client commitment...

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