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