9 Things Clients Need to Know about an Adviser

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In my last blog, I focused on the importance of having a service plan for those investors seeking a shared decision-making advisory relationship. Winning in this market segment requires a clearly articulated presentation.

However, beyond the now-common “elevator pitch” and “value proposition” summaries every marketing guidebook or consultant mandates, the fact is, investors looking for a new advisory relationship will want much more before making a decision—it’s called due diligence.

Most individuals will not have a clearly articulated process, but all want to reflect on their decision and know that they made a good choice. This is not just for the basic satisfaction of a well-made decision, but there’s real economic and emotional value at hand. An adviser that encourages scrutiny shows confidence and transparency, two characteristics central to a trusted advisory relationship (note: for a discussion about making this scrutiny visible to your market, see “Removing Purchase Obstacles to Valuable Benefits”).

Making Business Personal
Whether a formal or informal process, there are nine key messages that every prospect must know about an adviser. Unlike an institutional due diligence process that emphasizes sterile facts, an adviser personalizes these to not only reach the prospect’s mind but also the heart. Both must exist for a professional relationship to flourish.

1.) The Key Benefits Clients Receive: This goes beyond the service listing often found in standard value propositions to personalizing the importance of each benefit (see “Clients Buy Benefits Not Features”).

Example: “When my clients see their needs and aspirations carefully marked as milestones in the wealth plan, a real sense of financial purpose takes over.”

2.) Pricing Services: Clients’ value a fiduciary’s watchful eye over increasing complexity and uncertainty, and this must translate into an appreciation for relationship pricing such as a retainer or fee on AUM, compared to a commission approach that is inherently transactional.

Example: “We only work for your best interests, and this isn’t something that is turned on or off but rather is a constant, and that’s why we price our services in a bundled fee for the wealth we oversee.”

3.) Services Have Value: Services deliver financial or emotional benefits, and a specific example brings tangibility.

Example: “Our retirement income planning ensures that the income you receive is done so efficiently. Recently, we increased a client’s monthly income by XX percent through improved tax efficiency.”

4.) Your Service Practices: Move beyond the overused term “relationship” to how a client actually experiences the delivered services.

Example: “It’s important that we get to know you and your family. Then, when we have our meetings, you’ll see how our services directly connect to what’s on your heart and mind.”

5.) Why You’re an Adviser: Your advisory business is a service business delivered by a server. It takes a certain personality willing to serve, and the energy source for this is an adviser’s passion.

Example: “My family struggled with financial anxiety and my heart still aches for the burden it caused. I became an adviser to bring peace of mind to my clients.

6.) Your Community Involvement: Your advisory business is a people business, and this is best illustrated in community involvement.

Example: “My family took root in this community back in [year], and we are involved in X, Y and Z. This involvement gives us a deep appreciation for what it means to be a true neighbor and, since many of our clients are local too, we connect on many professional and personal levels.”

7.) Your Credentials: More than listing specific charters, list needs-based expertise.

Example: “My expertise sits right in the center of what you need in identifying a retirement-income plan. I’ve developed similar plans for XX of our clients, so it’s rare that an issue comes up that I haven’t already encountered.”

8.) How You Built Your Company: Knowing why an advisory firm started tells a lot about the adviser.

Example: “It was important to me that my business dedicate itself to specific wealth needs instead of being diluted as would be the case in a larger firm.”

9.) Your Business’s Objectives: An advisory firm is usually a community-based business.

Example: “We’re a small business in town and when our clients achieve financial, social and emotional success, the whole community benefits.”

Messaging to Win
Clients who understand an adviser’s relatable characteristics easily can paraphrase them to others. When a client speaks in this way, he or she not only offers the adviser an important due diligence reference, but the adviser’s characteristics become further internalized.

Kirk Loury

 

Kirk Loury
President
Wealth Planning Consulting Inc.
Princeton Junction, New Jersey

2 thoughts on “9 Things Clients Need to Know about an Adviser

  1. Great article, great advice and insight. Timely. Thanks.

    Like

  2. As someone who helps advisors’ write about themselves and their businesses (developing content for their websites), I wish every financial advisor would read this list and think about these 9 points as they decide what is most important to include! Thanks for sharing

    Like

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