turning up the heat! creating value for your hnw clients anne manson vp strategic business...

Turning up the heat!

Turning up the heat

How a little extra effort…

Turning up the heat

…can producean incredibleamount of

value for

clients.

What am I going to talk about?

What is steam (212 degrees)?

Why do advisors need to deliver steam?

How do clients assess the value of steam?

How do you turn up the heat?

What is steam (212 degrees)?

Improvingas many aspects

of a client’s life

as possible.

What is steam?

Steam

Hot Water

What is steam?

Cares for client as a

client

Cares for client as a person

Advisorlooks for

ways to helpthe

relationship continually

evolve

Advisor maintains

friendly butmainly

professional relationship

Evolving AdvisorTrusted Advisor

What is steam?

financial planner

investment counselor

educator

Steam

Founding AdvisorFounding Advisor

Financial Planning

Evolving Advisor Case Study

Retirement Consulting

Healthcare Referral Practices

Next GenerationNext Generation

Retirement Boot Camps

Wealth Planning

Lifestyle Services Coaching and Support

Evolving Advisor Case Study

Why do advisors need to deliver steam?

Environmental impact on clients

Volatile Financial Markets

Retirement Realities

Industry Perception

Media Hype

Stagnant Economy

More Choices

Fee ScrutinyPoor PortfolioPerformance

Complex Lives

Value Gap

Why do advisors need to deliver steam?

The client “value gap”

Standardneeds

andexpectations

More needsand

heightenedexpectations

Value ofservicesprovided(IncludesAdvice)

Steam

Servicesbeing

provided

Services and expectations not being met

Ignorance is bliss

If a tree fallsin the forest…and no one is there…doesit make a sound?

If a client doesn’t ask for steam…isit really that important to them?

Why do advisors need to deliver steam?

YES

Why do advisors need to deliver steam?

Client articulated value

Research confirms client value gap – top 6 of 16

Source: New world advisor 2010 – The Oechsli institute

1. Provide clear and timely communication

3. Focusing on my family affairs, not his/her practice

2. Resolving problems quickly and to my satisfaction

4. Meeting my investment performance expectations

5. Possessing a comprehensive breadth of knowledge & depth

Average

52%deficiency

6. Always having my family’s best interests behind every decision

Importantto me

Advisoris providing

Why do advisors need to deliver steam?

Do Not Receive Excellent Value for Fees Charged

65%35%

Do Receive Excellent Value for Fees Charged

Source: Institute for Private Investors Report, 2009.

7. Fully disclosing fees

Fee transparency is inevitable

Why do advisors need to deliver steam?

Legislation is coming

Clients are becoming more educated

Clients are reviewing their portfolios more often (43%)

Competitors are promoting lower fees

Source: Barclays Wealth Insights, 2010.

Why do advisors need to deliver steam?

Unattended issues can have a financial impact

BadRelationships

divorce

businesspartner

Expensive Lifestyle

spender

generousto a fault

Financial Literacy

economy

markets

split assets

dwindleassets

withdrawassets

Why do advisors need to deliver steam?

Why clients left their advisors

Source: CEG Worldwide LLC. Breaking Through – Building a world class wealth management business - 2008

How do clients assess the value of steam?

New equation for assessing value

by HNWC

How do clients assess the value of steam?

what am I getting?

how much am I paying?= CPV

Relationship

Not Valuable

Valuable Invaluable

Neutral Services

Table-stake

Services

BuilderServices

What value do I place on the relationship?

How do clients assess the value of steam?

Client’s perception

of relationship with Advisor

Services offered

and their affect on the relationship

Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience

Examples of services

Keeping accounts accurate.

Keeping website updated.

Preventingclients

from being overzealous

when markets are

on the upswing.

Neutral Services

Table-stake

Services

BuilderServices

How do clients assess the value of steam?

Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience”

What category does fee disclosure fall under?

Fee disclosure

How do clients assess the value of steam?

Neutral Services

Table-stake

Services

BuilderServices

Source: Adapted from VIP Forum “Building Loyalty through a high-quality client experience”

Solving Problems

PersonalService

FeeDisclosure

KnowledgeDistillation

Communication

Client’s perception of value is based on a combination of factors

How do clients assess the value of steam?

Knowledge

CustomizedCommunication

Full transparency

Client expectations

How do you turn up the heat?

How do you turn up the heat?

1. Shift your paradigm

Rebuild your brand to represent the evolving advisor who is

continually adding value to the client’s life.

Rebuild your brand to represent the evolving advisor who is

continually adding value to the client’s life.

2. Customize the advice you provide to each client

Client #1 Client #2

How do you turn up the heat?

financialleader

wealthplanner

concierge

educator

3. Conduct a steam test

Are you delivering steam?Use the “steam test” tool

to find out.

Are you delivering steam?Use the “steam test” tool

to find out.

How do you turn up the heat?

4. Implement new or improved services

• hone existing skills

• develop new skills• establish partnerships

• tap into client base for experts

How do you turn up the heat?

5. Look for opportunities to add value

Addressthe breadth

of personal andprofessional needs.

How do you turn up the heat?

Example 1: Client needed help managing selfish inheritors.

Look for opportunities to add value

Look for opportunities to add value

Example 2: Clients need help with their business.

Business Coaching

Example 3: Client needed help making a personal decision.

Look for opportunities to add value

Look for opportunities to add value

Example 4: Clients need help educating their kids.

Financial literacy workshops for children

Example 5: Client needs to solve family conflict.

Look for opportunities to add value

Wrap up

Why are advisors the best people todeliver steam?

Why are advisors the best people todeliver steam?

Disclaimer

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