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The Power of Wow

After her particularly stellar basketball season, John Evans, Jr., Ed.D., took his 10-year-old daughter for a trip to the Sarasota, Fla. Ritz Carlton.

On the elevator ride up to their room, he praised her rebounding, her boxing out, her shooting. They settled in, left the hotel, and came back to their room to find a tiny chocolate cake with a message on top reading, “Congratulations on the great season, Susana.”

The bellman had heard the entire conversation and seized the opportunity to give these two guests what Evans refers to as a “wow moment.” He defines this as a unique, emotionally engaging experience that goes beyond expectations and is readily recounted.

Evans, executive director of Janus Henderson Labs of Janus Henderson Investors (formerly Janus Capital Group), told FPA Retreat attendees in April 2017, that generating wow moments for a great client experience, like the one he had at the Ritz Carlton, starts with energy levels, is followed by clarifying your purpose, and ends with expanding your team’s capacity to deliver authentic wow moments (read more about “wow moments” straight from Evans in the June 20 FPA Practice Management Blog post titled, “The Circle of WOW”).

“We have an energy crisis here, ladies and gentleman,” Evans said. “But here is the thing: we can create more energy.”

Evans noted that there are four areas on the energy pyramid: the physical (the fundamental source of fuel, sleep); emotional (the capacity to manage emotions); mental (capacity to organize and focus attention); and spiritual (the purpose beyond self-interest). Of those, we are most stressed in the mental and emotional.

But, Evans noted, stress isn’t always bad.

“Stress is the giver of life,” Evans said. “A life of pillows and marshmallows is no way to live.”

Evans notes that a way to generate more energy in all areas of the pyramid is to embrace stress and abolish multitasking, which he said is “one of the greatest enemies of extraordinary and the pathway to mediocrity.”

It’s counterfeit engagement, he said, and we all need to become more engaged. Focus on one thing at a time, establish healthy habits such as eating right and exercising, and see if your energy levels improve.

Next, advisers must clarify their purpose. Why do you do what you do? What is your purpose? Your cause? Your belief? Actively communicate that from the inside out.

Finally, appoint a “wow czar” or “chief clientologist” whose job it is to help generate these experiences. This person should have tremendous emotional intelligence and be creative.

“We have to be intentional about wow,” Evans said.

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Ana Trujillo Limón is associate editor of the Journal of Financial Planning and the editor of the FPA Practice Management Blog. Email her at alimon@onefpa.org


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The Circle of WOW

On a recent flight home, after giving a keynote speech on driving deep client loyalty in the financial services industry, the woman sitting next to me asked about my business. It turns out that she was a public relations executive for the dental industry.

Intrigued, I asked, “What is the most effective slogan you have ever authored in your world of teeth?” She responded, “Simple. This one: you don’t have to floss every tooth, just the ones you want to keep.”

Instructive! So it is for clients in the financial services industry: you do not have to connect emotionally, or make meaning with every client, just the ones you want to keep.

Let’s be candid: nobody can control market events, but investment advisory teams can control how they connect emotionally with clients, colleagues and others. Regulatory changes and challenging investment environments should remind us that making stronger connections is more important than ever. And a key way of doing that is what we at Janus Henderson Labs affectionately refer to as The Art of WOW—focusing on actions that build impactful connections with those we care about at work and beyond.

Launching a meaningful wow journey requires planning. We like to start with “The Circle of WOW,” a four-step business development approach designed to fire up your business development efforts and start a perpetual upward spiral of results:

Step 1: Evaluate. Find your super-niche that helps you grow on purpose, not by accident. No matter what your profession—cultivating a “happiness advantage” is a natural outcome of discovering your unique business tranche (UBT) and developing your business around it.

Step 2: Activate. Identify and WOW your “Client Marketing Officers” and never ask for a referral again. Learn to consistently deliver WOW experiences to key members of your UBT, and leverage their guidance on how to grow your business with the help of other extraordinary members of the group.

Step 3: Replicate. Curate ideal clients and quit prospecting as you know it. With the help of your Client Marketing Officers, identify best new prospective clients and connect with them based on the fundamentals of WOW. Design each prospect’s experience based on a customized assertion schedule.

Step 4: Perpetuate. Create a magnetic ecosystem. Stop promoting and start attracting (and connecting). Deliberately cultivate personal rituals and design your environment to continually attract and nurture your UBT. Maintain a strong presence as an expert and dominate your space with unmistakable joy and command.

While WOWing our clients is certainly an art, we follow an actionable playbook on how unexpected, thoughtful behavior can elevate you from a professional resource to a provider of truly personalized service.

To learn more contact Janus Henderson about The Art of WOW. Our program, designed to drive extreme client loyalty, was developed in partnership with Dr. Joseph Michelli, internationally recognized client experience expert and author of The New Gold Standard: 5 Leadership Principles for Creating a Legendary Customer Experience Courtesy of the Ritz-Carlton Hotel Company and The Starbucks Experience.

JohnEvans
John L. Evans Jr., E.D., is the executive director of Janus Henderson Labs of Janus Henderson Investors, formerly Janus Capital Group. He is a practice management expert who conducts extensive consulting and training with top financial intermediaries and businesss leaders worldwide.

 


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4 Ways to Retain Heirs

Ponder this worst-case scenario when it comes to introducing yourself to your client’s heirs: you’re at your client’s funeral and you offer both your condolences and a business card. The chances of those children and grandchildren calling you up after that are pretty slim.

Whatever you think of the younger generations—they’re lazy, entitled, glued to their phones—the fact remains that $24 trillion in wealth will transfer to them by 2030. They’ll need help. Introducing yourself to your clients’ heirs early and genuinely is the key to retaining that business.

Maria Quinn, adviser education specialist for Vanguard, told FPA Retreat attendees in April that there are ways to meaningfully engage with the adult children of your clients. First, Quinn advised, understand how the younger generations are different and how they perceive financial advice; second, fully engage both spouses; and last, authentically connect with the heirs of your clients.

In a 2015 Deloitte survey, 40 percent of boomers surveyed said their children work with a financial planner. Of that 19 percent said those children worked with a firm other than the ones the parents worked with and 21 percent worked with the existing firm.

Combined, Gen X and millennials (born between 1965 to 1997) are 141 million people. They’re different in the way they interact with financial planners. The acronym used to describe them is HENRY: high earner not ready yet. They will have wealth; they just don’t have it yet.

The younger generations are noted as the “401(k) generation,” Quinn said. They are saving automatically and don’t generally know where their money is invested. Both Gen X and millennials are socially conscious and express interest in learning more about retirement from their employer. Gen X tends to be distrustful of the financial advice industry while millennials see it as being too sales oriented.

But a smart move in reaching that next generation is to form a relationship with their mothers. Quinn said that many advisers tend to ignore the wife in client couples.

“She may be quiet in the room, but don’t think she doesn’t have opinions,” Quinn said. “She controls about 90 percent of the decisions. You want her in the room. You want to make sure you’re engaging her as much as you can.”

Some examples Quinn offered attendees to authentically connect with clients’ families were:

Do something special for your favorite clients. Quinn noted a planner who’d planned an 80th birthday party for his favorite client, pleasing her and impressing the family alike.

Offer pro-bono services for life events. Offer to do a financial plan for your clients’ children when you hear they are getting married or are expecting a baby. This could help forge a new client relationship and loyalty for years to come.

Pair up young advisers with young clients. Quinn said pairing up your clients’ children with your firm’s younger advisers would also be helpful. It would get that next-generation business in the door, while giving your next-generation advisers some valuable experience.

“Younger investors like to have a cultural similarity with the advisers that they’re working with,” Quinn said.

Be a savvy communicator. Quinn encourages planners to utilize technology to make a positive impression. She noted that the next generation of clients will do a Google search on you, and you want to be sure that what they find is appealing. Also, note that this generation probably doesn’t prefer phone calls, but rather emails and texts.

“If you do have clients whose children you want to make meaningful connections with,” Quinn said, “determine the most effective way to initiate engagement and establish a strategy for sustaining engagement.”


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4 Questions to Attract More Clients

There are just four questions that every financial adviser must answer if they want to attract more clients. If you can answer these questions, you’ll be able to more effectively communicate your message to prospects so that they will want to work with you.

No. 1: Who’s Your Ideal Client?

When advisers think about their business and how they help people, they tend to think the most about the services they provide. Things like the types of planning they offer, the investments and products they use for clients, the process they walk clients through, etc., but we rarely focus on defining who we serve.

The financial advisers that will survive and thrive over the long term will define their business not by the service they offer but by the people they serve.

They know exactly who their ideal client is.

No. 2: What Value Do You Provide?

You undoubtedly provide a lot of great advice to your clients. But what do your clients value the most? What’s most important to them?

Do they care about investment selection, the products, the process, your credentials, your years of experience or your past performance? I’m sure they do.

But there’s actually only one thing that your clients value above all else: their transformation.

They are seeking the positive change they experience by working with you. They want the end result. How do I know this? It’s because people buy the destination, not the plane ride.

What is the destination your clients are trying to get to? What’s the ideal end result you can help them achieve? This is the real value you give to clients and prospects.

No. 3: How Do You Clearly Communicate Your Value?

If you’re the greatest financial adviser in the world but you don’t know how to clearly communicate your value to ideal prospects, then you won’t be in business very long. If you cannot clearly communicate your value to people, nothing else you’re doing in your business really matters.

Many good advisers have failed because they didn’t know how to clearly communicate their value.

The best advisers are able to engage in a conversation with a complete stranger and within two minutes, that stranger fully understands how that adviser helps people. Even better, that stranger will have enough curiosity and excitement that they want to hear more from the adviser.

If you’re able to naturally start the conversation with people, you’ll have no trouble getting people in the door. And If you can communicate your value, you’ll have no problem getting people to become your clients.

No. 4: How Will You Consistently Attract and Acquire New Clients?

This is the most important question that advisers need to answer. It’s also the one most advisers have a hard time answering.

How do you find new clients? Most advisers rely on referrals to get new business. Some others still do seminars, lunches, cold calling and networking events. Those techniques are good but there are more and more advisers turning to newer ways of attracting prospects to them. Techniques such Linkedin referrals, Facebook ads, blogging and webinars are quickly growing in favor with advisers. This is because they are less expensive and more profitable than the “old school” ways of getting new clients. But there’s also a steep learning curve to these. You shouldn’t let that stop you from testing them out. When you find the technique that works for you, stick with it and focus all your energy there.

Take five minutes and try to answer these four questions. And be honest with yourself. If you’re having trouble with one of the questions, start exploring new ways to try and answer it. If you need ideas, download the accompanying guide to help you out.

dave-zoller

 

Dave Zoller, CFP®
Financial Adviser
Streamline My Practice
Warrenville, IL


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All Business is Personal: 3 Tips for Addressing Difficult Client Conversations

“Hi Jim. I wanted to inform you that your funds will be transitioning from an A share to a C share, which means you will actually pay less in fund fees, however, my fee cost will be increasing just a big. Let’s set up a time to discuss.”

Now there’s an email nobody wants to send or receive. As the financial industry evolves and advisers are held to an increasingly higher standard, you may have to take a new approach to difficult conversations with your clients. The ability to engage clients in these discussions is critical in building and retaining a successful practice.

Here are three tips based on the research of G. Richard Shell, award-winning author and creator of the University of Pennsylvania Wharton School’s “Success Course,” on how to better approach challenging conversations and ensure you’re creating Demonstrations of Value (DOVs).

Talk About Client Goals First
When times are tough, take a positive approach by focusing on their goals while still acknowledging the concern. For example, you could say, “I know you set up this portfolio to save for Katie’s college education. She’s starting high school next year, so we still have four years until tuition starts. I know the markets have been rough, but I believe we’ll still be able to achieve your goal. Here’s why.”

By leading the conversation with knowledge of your client’s specific needs and concerns, you can better address the need to maintain an objective view throughout market challenges and not let emotions cloud a commitment to a longer-term strategy.

Help Them See the Big Picture
Your client comes to you with big news. She and her husband are ready to buy that house on Lake Winnipesaukee they’ve been talking about for years. While you share her enthusiasm, you want to make sure that she’s putting this decision into context.

During this conversation, you have an opportunity to demonstrate your knowledge of your client’s plans and needs. How long do they plan to own this house? Will they need to consider space for additional family members later on? Is this where they’d like to retire one day? If yes, how does that fit into their overall retirement plan?

When you help them consider the questions that matter, you reinforce your value more deeply than their investment positions. You can help be a leader when it comes to a family’s important life decisions.

It’s About More Than Money
Get to know your clients beyond their portfolio. While it may seem obvious, occasionally our time gets the best of us and we don’t focus on the details that could make a difference.

Keep notes on their hobbies and interests, where their priorities are, how old their kids are and family anniversaries and birthdays. Knowing these specifics can help foster a relationship that goes beyond just business, creating a partnership that can withstand even the toughest financial environments.

Are you ready to demonstrate your value in a collaborative client relationship? For more tips on how to boost your communication skills, learn about the 3Cs to enhance your negotiation skills.

JohnEvans

 

John Evans
Executive Director, Janus Labs
Janus Capital Group
Denver, CO


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Why Clients Choose You

Why would a prospect end up choosing you over another adviser?

There’s really only one thing that a prospect is looking for when they begin the conversation with you. If they believe you can provide it, it’s much more likely that they’ll become your client.

What Prospects AREN’T Buying

Despite what most advisers think, people aren’t working with them because of their:

  • Superior investment selection
  • Comprehensive financial plan
  • Account aggregation software
  • Years of experience
  • Credentials after their name, etc.

We’re all proud of those things and they play a role in the decision to work with you, but they’re not the reason people choose you over everyone else. Prospects aren’t buying the products or features you provide. They’re actually not buying the benefits either.

They’re Buying Transformation

The one thing that they are buying is the transformation that they believe they will get by working with you.

What do I mean by that? It doesn’t matter what people are buying. Whether it’s a candy bar or new car, we’re all looking for the same thing: we’re living in a current state and we want to move into a desired “after state.” We believe making the purchase i going to move us into that place we want to be.

Imagine what your prospect’s thinking. Why are they talking to you? Why are they looking for a financial adviser? I can definitely tell you that they’re not calling you because everything is perfect with their finances.

They’re calling you because they are discontent with some aspect of their financial life. They’re not completely happy with everything they’re doing. They have a problem that they don’t know how to solve and they may be frustrated, worried or confused. The fact is they’re looking for an adviser because they are in a place that’s less than ideal.

And that’s your ideal prospect. Why? Because you know that you have the solutions they’re looking for.

Where Do They Want Go?

If their existing state is discontentment, then they need to move into a place of contentment.

This is the entire value of your service business summed up in one sentence: you are helping people move from their before state to an ideal after state.

If you can clearly communicate this in a way that they understand, you’ll never have to sell anything ever again.

What’s The Next Step?

Take out a sheet of paper and write down answers to these questions.

  • Where are they now?
    1. What are their problems?
    2. Why are they looking for help?
    3. What’s their emotional state?
  • Where do they want to be?
    1. How will this change after working with you?
    2. What will they have?
    3. How will they feel?
    4. What will they leave behind?
    5. What kind of person do they want to become?

Once you’ve written these answers, you’ve taken the first step to discovering the transformation your ideal client is looking for. Start using these things you’ve discovered as you talk with prospects moving forward. Pay close attention as you talk about their desired “after state.”

dave-zoller

 

Dave Zoller, CFP®
Financial Adviser
Streamline My Practice
Warrenville, IL


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A Client’s Evolution

It’s no secret that advisers want to have a client base made up of loyal clients. However, most advisers may not take the time to fully understand why some clients are one-time customers while others are lifetime advocates.

Let’s take a brief look at what I call “the client’s evolution”—an evolution that we all have with our clients to some degree—so that you can better comprehend how you can build client relationships that last a life time.

The Customer

More than 20 years ago, I began building my business by following some simple advice from my branch manager: Find a good double tax-free municipal bond and tell everyone you can about it.”

As an eager rookie I did just that and soon I was opening up new accounts with what I thought would be “forever” clients. Unfortunately, I soon realized that many of those clients were simply one-time customers—people who had decided to buy a product. They were trying to find the best-yielding bonds and it didn’t matter who they were buying from. Some of those individuals bought additional bonds but for the most part I was one of several advisers they were working with and my value was merely a function of how well my product was doing at the time.

If you have several “customers” working with you and you would like to forge stronger relationships with them, you must find a way to show your value to them. One of the best ways to do this is to stop being a product pusher and start being a problem solver by getting to know them. Once you do, you can find their needs and fill them.

The Client

As my practice grew, I decided to take a different approach and offer prospects a complete plan to help them achieve their financial goals. This opened the door to creating solid connections from the start because I was able to identify specific needs that the prospect had and share with them how my products and services could be their solutions. I was no longer pushing any specific product but rather solving their financial concerns. As a result, these types of people became clients.

If you have customers you’d like to turn into clients and get to know even better, it’s time to get to know them on a more personal level.

The Friend

After a number of years, I noticed that some of my clients had turned into close friends. Just as any friendship evolves with communication and respect, so can an adviser/agent/client relationship.

I never started out to form friendships with my clients, but friendships occurred naturally over time after I showed genuine interest in their lives. They were no longer just clients to me, but friends who I wanted to help—not only with their financial goals but in any way that I could.

The Advocate

At some point in my career, I realized that a select group of clients whom I had formed friendships with had an interest in my success. I had developed a level of professional and personal trust with them and they were absolutely convinced that I was not only capable of helping with their financial advisory needs, but that I truly had their best interests at heart.

That’s when I realized that I had what I now called “advocates” or clients who willingly wanted to help me succeed by introducing me to their friends and family. In addition, some of these people shared their own experiences in business and suggested marketing, staffing and even branding strategies to help me.

Why Clients Evolve

I’m sure by now you might relate to having clients of every stage that I mentioned. The secret to evolve your client base is to evolve as an adviser yourself and be involved with your prospects and clients from the very start.

If you are ready to evolve your practice, schedule a complimentary 30-minute coaching session with me by emailing Melissa Denham, director of client servicing.

Dan Finley

 

Daniel C. Finley
President
Advisor Solutions
St. Paul, Minn.