In our industry, it can sometimes be easy to lose sight of the primary purpose of our business, which is to service the financial needs of our clients. Personal, professional and even corporate goals may lead some of the best financial planners to occasionally place their focus in a direction that isn’t in the client’s best interest but in theirs. When this happens, it goes against the “science of service.”
In the short-term, this shift of focus may help the planner accomplish a goal but typically in the long-run it can only be counterproductive because it goes against what should be all about a planner’s integrity. Once this “line” is crossed it is that much easier to cross it again because a planner’s definition of what that “line” is becomes blurred by excuses.
Mahatma Gandhi said it best when he said, “The best way to find yourself is to lose yourself in the service of others.” I believe this is very true. However, that begs the question of, “What constitutes service?”
Understanding the Science of Service
Most planners and agents think that the definition of service is to answer incoming client calls, hear what they need, drop everything and attend to their requests. However, that is a very reactive client servicing system. And, while this type of servicing is obviously necessary at times, it isn’t the only thing that clients need.
Step 1: Have a High Level of Integrity
Over twenty years ago, I asked John M., the most seasoned financial planner in the office a simple question, “Can you run a financial advisory practice with integrity and still make a great living?” He simply smiled and said, “You will make more money than you could ever imagine as long as you continue to do the right thing.”
Unfortunately, we have all met prospects who owned products that were inappropriate for them. Instead, the planner who sold them these types of products probably did so because they were thinking of their own best interests.
Ironically, the science of servicing begins even before a prospect becomes a client because recommending an inappropriate product(s) is doing the prospect and yourself a disservice.
A level of impeccable integrity must continue when they do become a client.
Step 2: Have a High Level of Product and Market Knowledge
Clients entrust their hard-earned money to you because they believe you not only have their best interest at heart but that you fully understand the right investment strategies for them. That’s why it’s so important to take the time to keep abreast of your product and market knowledge.
An example of this is Paul C., a financial planner client of mine who spends at least 30 minutes each morning reading something related to the stock market, the economy and/or various products that he recommends to his clients. He says that by doing so he feels well-versed to answer any questions that his clients or prospects have.
Step 3: Have a Proactive Client Servicing System
Most financial planners want to service their clients in the best way possible, but many fail to understand how to service clients effectively because they don’t understand what great service means.
David P., another client of mine, was putting out fires all day long which made him feel exhausted more often than not. That is until we designed a proactive client servicing system by segmenting his book, clearly defining his client servicing levels, systematizing his client servicing activities and delegating many of the day-to-day interruptions to his staff. It didn’t take long before David felt back in control of his day.
Why Servicing is Not an Art
Hopefully by now you can relate to the planners in each one of the examples and realize that what they’re doing is not subjective. To John M., integrity is the cornerstone of service; to Paul C., knowledge is imperative to keeping his clients informed and having the right investments; and to David P., having a proactive client servicing system gives his clients and himself peace of mind. To these planners, their activities are not open to interpretation. Instead, they have adopted a “science of service” mindset.
If you are ready to take your business to the next level, schedule a complimentary 30-minute coaching session with me by emailing Melissa Denham, director of client servicing.