power practice workbook - putnam investments€¦ · abundance or scarcity? are you a consultant or...
TRANSCRIPT
DennisMoseley-WilliamsStrategicConsultingisaninnovative,full-service
marketingandcommunicationsagency.
DennisMoseley-WilliamsStrategicConsultinghelpsorganizationsreach,
connectwith,andbuildsustainablepositiverelationshipswiththeir
desiredcommunitiesthroughtheintegratedapplicationofeffective
communicationsstrategiesandbestbusinesspractices.
FounderDennisMoseley-Williamsworkscloselywithclientstodevelop
customizedsolutionsthatdriveresults,increaserevenues,producelong-
lastingclientrelationships,andbuildbusinessesbasedonskill,knowledge,
andpersonalservice.
Dennisdescribeshisprocessas“human-drivenmarketing”;thisapproach
isproventohelpattractgreatclientsandbuildabusinessthatwilllast.
Dennistakeshisclientsthroughtheprocessofcreatingcustomized
marketingplansthatspecificallyaddresstheirbusinessneeds.
Dennisisaninternationallyknownconsultantinthefinancialservices
industry,withexpertiseinpracticemanagement,businessdevelopment,
andmarketing.Since1995,Dennishashelpedentrepreneurscreate
sustainable,predictable,andduplicablebusinesses.
DennisisamemberofthePutnamBusinessAdvisoryGroup,Putnam’s
nationalspeakingbureau.
Putnam Investments prides
itself on offering innovative
sales ideas, industry-leading
resources, and dynamic
seminars for financial
advisors as they help clients
meet their financial goals.
This Power Practice seminar
workbook is another
example of our commitment
to you as a professional
and to the growth of your
financial planning practice.
moseleywilliams.com613.729.0419
1
The Power Practice program is designed to help you develop meaningful client relation-ships based on trust, integrity, commitment, and communication.
Thisworkbookisdividedintoseveneasy-to-follow
sections.Inthepagesthatfollow,you’llfindexercises,
information,andtoolstohelpyoudeepenyourknowl-
edgeofyourclients,yourpractice,andyourself.
Doyourclientstrustyou? 2
Workonyourpractice,notinit 3
Positionyourselfasaprofessional 4
Createanidealclientprofileandclassifyyourclients 6
Createaclientserviceplan 8
Createyourclientservicematrix 10
Evolutionorrevolution? 12
Focus on the ones who count.
Consider this: Out of 200 households
50%
35%
15%
The top 40 households = 50% revenue
The middle 80 households = 35% revenue
The lower 80 households = 15% revenue
Your next 90 days: Get the results you want
2
What are the primary reasons that advisors get fired?
Surprisingly,it’snotalways
investmentperformance,
technicalknowledge,orquality
financialreportsthatarecited
astheprimaryreasons.Clients
aremoremotivatedtoleave
becausetheyfeelthattheir
advisorwaslackinginthree
keyareas:trust,service,and
relationship-building.11 RussPrince&Associates,2002.
In the financial industry, the product is often secondary to the service that you offer. How you interact with clients and how they view you can make a significant differ-ence in your success.
Do your clients trust you?
Developing long-term, lucrative relationships
with your clients isn’t solely about delivering the
top performance or possessing the very best
financial expertise.
It’saboutestablishingtrustingrelationshipswithclients.Traits
likeintegrity,accountability,andcredibilityallfosterthattrust.
Ifclientsfeelcomfortableentrustingtheirmoneytoyou,theyare
morelikelytoreferyoutofamilyandfriends.
Itisimportanttothinkstrategicallyaboutyourclients.Youneed
tools—sustainable,predictable,andduplicablesystems—tohelp
yougettothatlevel.Creatinganidealclientprofileandestablishing
aclientservicematrixwillhelp.First,youneedtodevelopasense
ofyourclients’experienceswithyou.
TRUST
CONSISTENCY
ACCOUNTABILITY
C
RE
DIB
ILIT
Y
INTEGRITY
CO
NGRUEN
CY
3
Success in this business is largely dependent on three components: credentials, efficiency, and chemistry. How would your clients describe their experiences with you?
What we can learn from McDonald’s
Onewaytoimproverelationships
withclientsistoenvisiontheir
experiencewhentheyinteract
withyou.ConsidertheMcDonald’s
example.Therestaurantchain’s
product—thefood—isnot
necessarilythebest.Yetthe
companyhasserved“billionsand
billions”ofitsfamoushamburgers
overtheyears.Why?Consistent,
predictableservicekeeps
customerscomingback.Inother
words,McDonald’ssucceeds
becauseitrarelybreaksits
promisestocustomers.
By taking your clients’ perspective, you can learn
how to improve your level of service.
Doyourclientsknowwhentheywillmeetwithyounextand
whattopicswillbecovered?
Doyoucallyourclientsevery90daysandrecordthedetails
inaBusinessDevelopmentandRelationshipManager
(BDRM)system?
Doesyourbusinessgrowprimarilybyword-of-mouth
endorsementsfromexistingclientsandotherprofessionals?
Work on your practice, not in it
Product
Service
Experience
?
?
?
4
Instead of chasing clients, try attracting them.
For prospective clients, one way is to create an air
of exclusivity around your practice.
Itishumannaturethatpeoplewantwhattheycannothave.
Youcanprojectexclusivitybybeingunderstatedaboutwhatyou
do(seestatementsbelow).Foryourexistingclients,paypersonal
attentiontothem.Thiscanbeachievedbyholdinginteresting
meetingsandevents,droppingthempersonalnotes,etc.Make
sureyoucreatemeetingsthatclientswilllookforwardto.
To position yourself as a professional, consider such statements as:
• “Unlikesomeadvisorswhoaretryingtoseehowbigthey
canget,IamtryingtoseehowsmallIcanstay.”
• “Ratherthanbeingallthingstoallpeople,Iamallthings
tosomepeople.”
• “IamselectiveabouttheclientsIworkwith.”
• “Therehastobeagoodfit:Myclientshavetofeelthatthere
isagoodfitwithmeastheiradvisor,andIhavetofeelthere
isagoodfitwithmyclients.”
People want what they cannot have.
Create exclusivity.
Do your clients look forward to your meetings?
Are your events well attended?
Do your clients view you as their personal CFO?
Do you project abundance or scarcity?
Are you a consultant or a sales person?
Are you a specialist or a generalist?
Do your clients think you pay attention?
Position yourself as a professional
5
Listen to your clients
Strong listening skills are crucial to successful
client interactions. Often , the greatest gains
in service are achieved by simply listening.
Payingattentiontoyourclients’words,ideas,andfeelingshelps
youwintheirtrustandelevatesyourstandingwiththem.
Whenyoulistentoyourclients,youcanlearnabouttheir
hopes,dreams,andaspirations.
Determine your client’s financial priorities
• Askyourclient,“Whatfinancialgoalsareimportanttoyou?”
(Neverinterruptorcommentwhileyourclientanswers
thisquestion.)
• Oncetheclienthasfinished,say:“Nowputyourgoalsin
orderofimportance.”
To get a clearer understanding of your client’s goals, rephrase the question several times:
• “Whyisthisimportanttoyou?”
• “What’simportantabout_____________toyouand
yourfamily?”
• “Ihearthatoften,buttellmemoreaboutwhatmakesthat
importanttoyou.”
Thenlistentotheanswers.
Sharpen your communication skills
• Scriptingandtoolssuchas
PowerPointaddstructureand
flowtoameeting.
• Createaclientintroductionthat
isclearandconcise.
• Preparednessiskeytoeffective
communications.Don’twingit—plan
inadvanceandpractice.
“ You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”
—DaleCarnegie,authorofHow to WinFriends and Influence People
6
Create an ideal client profile and classify your clients
When envisioning an ideal client, focus on the “Three Rs”: revenue, respect, and refer. The Three Rs will help you focus on those people you want to work with.
Identifythequalitiesthatyouridealclientwouldpossess,
ratherthanjustoutliningtheincomethata“best”clientwould
generate.Determinewhichclientsmeettheprofileandonlybring
onthoseclientsthatmeetyourcriteria.Theprofilehelpsyou
identifythoseclientswhohavetheassetlevelsyouareseeking,
havetheframeofmindtogiveyoutheirassetstomanage,and
willreferyoutoothers.
Revenue Basedonyourareasofexpertise,whatminimum
amountofpredictableyearlyrevenueshouldyouearnfrom
yourclients?
Totalassetsdesired=
Numberofclients x
Assetsperclient
Respect Youwanttoattractclientswhowillrespectyourtrue
worthasafinancialadvisorandnotfocusonwhatyoucostin
termsoffees.Idealclientswillnottryto“negotiate”yourfees,
playthe“blamegame,”ormicromanageyou.
Refer Referralsshouldplayahugeroleingrowingyourbusi-
ness.Aclientwhorefersyoutosomeoneelseisprovidingyou
withthebestformofadvertising.
What minimum asset level must your clients possess?
What percentage of their overall worth are you going to manage?
Do they make a lot of money or are they worth a lot of money?
Why settle for 40% of a client’s assets?
Theaverageadvisorisworking
withonly40%ofaclient’sassets.1
Don’tyouwantaccesstothatother
money?Ifclientsareengaged,
theyaremoreprofitable.They
referfamilyandfriends,andoften
takeadvantageofabroaderrange
ofservices.21 Horsesmouth,LLC,2009.2 AdvisorImpact,2008.
?
?
?
7
Classifying your clients will help ensure that
you get the most mileage — and business — out
of your client service efforts. The following client
classification levels will help you shape your
service approach for all of your clients.
Top 40 Theseclientsarethenucleusofyourcoreclient
base.Theymakeup50%ofyourincome(and,mostlikely,
assets).Theyareinterestedincompletefinancialplanning
andprovideyouwiththeinformationyouneed.Youmanage
alloftheirassets.Theyhaveagreatattitudeandareapleasure
toworkwith.Theyintroduceyoutotheirfriends,family,and
associates—theyareadvocatesforyou.
Middle 80 TheseclientshavethepotentialtobeTop40clients.
Theyhavetheassetsand/orincome,buthaven’trealized
theirpotentialyet.Theymaynotintroduceyoutoothers.
Lower 80 Theseclientshavesignificantassets(enoughto
beincludedinyournucleusofclients),buthavenointerestin
completefinancialplanningorinhavingyouastheirexclusive
financialadvisor.
Top 40 Plus AsfamilymembersorrelativesofyourTop40
clients,theseindividualsofferyouagreatopportunitytogrow
yourpractice.Theylikelyhavethekindofassetsthatyoudesire
andwanttheservicesyouoffer.BecauseyourTop40clients
haverecommendedyou,theseclientsalsowillarrivewithahigh
levelofprofessionalrespectforyou.
Seven questions to ask when evaluating clients:
1. Whatistheirtrackrecordon
loyaltytootherprofessionals?
2. Dotheybouncearoundorstick
withprofessionalstheyhave
carefullyselected?
3. Istheirattituderealistictoward
themarkets?
4. Aretheypersonallyaccountable,
ordotheyplaceblameand
findfault?
5. Whatistheirattitudeabout
empoweringyouastheiradvisor?
6. Dotheypractice“advisor
allocation”—splittingtheirassets
amongdifferentadvisors?
7. Dotheymicromanage?
8
A client service plan identifies all activities you will
consistently perform for each client classification
level. Establishing a service matrix and consistently
implementing it brings accountability to your
practice and builds trust and goodwill.
Call rotation Checkinwitheachclientbyphoneonarotating
basisevery90days.Thiscanhelpbuildoutyourclientprofiles,
deepenandexpandyourrelationships,uncoverhiddenassets,
andstimulatereferrals.Keepingintouchwithyourclientson
aregularbasiswillhelpyoustaycurrentabouttheirlivesand
financialsituations.
Review meeting Establishanagendapriortoyourmeeting
andmailittotheclient.Thishelpsbuildapredispositionin
theclient’smindaboutthemeeting.Afewdayspriortothe
meeting,haveyourassistantcalltoconfirmitandaskifanything
haschangedorifthereisanythinginparticulartheclientwants
todiscuss.
Articles of interest Clientstellyouthingsaboutthemselves
allthetime—allyouhavetodoislisten.Writedownthesebitsof
informationandputanoteinyourcalendartocontactyourclients
amonthorsoafteryou’vemet,atwhichtimeyoucanemploy
someofthisinformationtohelpbuildacloserrelationship.
Workshop invitation Allofyourcommunicationswithclients
don’thavetoberelatedtofinances.Ifyouknowthat10ofyour
clientslovetocook,startadinnerclubandinvitethem.Consider
havingaclientasthespeaker.Createcommunity.
Create a client service plan
Before you meet, check in with your client.
Themorecurrentinformationyou
have,themoreproductiveyour
meetingwillbe.Forexample,ifa
clientjustboughtanewhouse,this
developmentcouldwellaffectthe
discussionatyourmeeting.
9
Client events Planatleastfiveoftheseeventsperyear.It
isperfectlyacceptabletocombinethenon-financialwiththe
financial,suchasadinnerorluncheonfollowedbyaportfolio
review.Youalsocanpartnerwithathirdpartytomakethese
clienteventsevenmoreinteresting.
Birthday card Thisisasimple,thoughtfulactionyoucantake
tobuildapersonalconnectionwithyourclients.Besuretosend
itearly,atleastbyaweek,asabelatedbirthdaycardisworse
thannotsendingoneatall.
Thanksgiving card TheperiodbetweenThanksgivingand
NewYear’s—thetimeoftheyearwhenyourclientsaremost
likelytoassociatewiththeirfriendsandfamily—isknownas
the“referralsseason.”SendaThanksgivingcardtoclientsin
mid-Novembersoyouaretopofmindwhentheymeetfriends
andfamilyovertheholidays.
Moments of truth Whentheopportunitypresentsitself,
makeabigstatementaboutyourpersonalcodeofconductby
recognizinganaccomplishment,milestone,orotherimportant
eventinyourclient’slife.
Holiday gift with a twist Foryourtop20clients,choosea
holidaywhengift-givingislessexpected.Itwillhelpyoustand
outinameaningfulandmemorableway.
Connecting with clients
Yourcontactswithclientscango
beyondthefinancial.Youcanengage
yourclientsthroughtheirpersonal
interests.Forexample,ifyoulearn
thataclientfromNewJerseylikes
gardening,doanonlinesearchfor
“gardeningintheMid-Atlanticstates”
ande-mailherthearticle.
10
The client service matrix lets you think tactically about engaging your clients.
It helps you create and track meaningful check-ins and touchpoints with
clients throughout the year. Here is an example:
Create your client service matrix
Callrotation
Reviewmeeting
Articlesofinterest
Workshopinvitation
Clientevents
Birthdaycard
Thanks-givingcard
Momentsoftruth
Holidaygift
Totalannualcontacts
Top 40Quarterly
Advisor
Semiannually
Advisor
Quarterly
Advisor&/orAsst.
Quarterly
Asst.
Semiannually
Advisor&/orAsst.
Annually
Asst.
Annually
Asst.
Asavailable
Advisor
Annual
Advisor 19
Middle 80Quarterly
Advisor
Semiannually
Advisor
Semiannually
Advisor&/orAsst.
Quarterly
Asst.
Annually
Asst.
Annually
Asst.
Asavailable
Advisor
Annual
Advisor 15
Lower 80Quarterly
Advisor
Semiannually
Advisor
Semiannually
Advisor&/orAsst.
Quarterly
Asst.
Annually
Asst.
Annually
Asst.
Asavailable
Advisor 14
Top 40 Plus
Semiannually
Asst.
Annually
Advisor
Asavailable
Advisor 3
11In
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orks
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12
Cultivating trust, profiling and classifying clients,
winning referrals, and using a client service matrix
to foster lasting relationships will help you grow and
strengthen your practice. Now you are faced with the
question: Can you evolve your practice to take it to the
next level or do you need to think in more revolutionary
terms? This career-long journey and process have only
just begun.
Whenyouneedhelpandinspirationinthefutureasyoucontinue
togrowyourpractice,itwillbeimportanttoconsiderthefollowing:
What can I read?
Readfinancialindustrypublicationsandprofessionaldevelop-
mentbooks,andkeepupwithclient-serviceliteratureandother
investingandpersonalfinanceperiodicals.
Who can I ask?
Joinaprofessionalassociation,createagroupoftrustedpeers,
cultivatementors,andattendprofessionalseminars.
Don’t just sit there — begin with the end in mind.
Establishachievable,clear-cutgoalsanddedicateyourselfto
makingincrementalprogresstowardthem.Revisit,revise,and
renewyourgoalsperiodicallytoensurethattheyremainrelevant
toyourprofessionallife.
How close are you?
“Youareprobablymuchcloserthan
yourealizetoachievingyourgoals,
andlivingalifewithlessstressand
significantlymoreenjoyment.Commit
yourselftotheserviceandassistance
ofyourclients,andchoosetoleadalife
lessordinary.”
Dennis Moseley-Williams
Evolution or revolution?
14
One Post Office Square Boston, MA 02109
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FOR MORE INFORMAtION:
Dennis Moseley-Williams
613.729.0419
For more practice-building ideas,
call your Putnam wholesaler or contact
Putnam Dealer Marketing Services
at 1-800-354-4000.