Tim Sargisson: Make sure clients value your service

As we all know, late 2012 marked the point when the centre of power between advisers and clients shifted. Not only did the Retail Distribution Review (RDR) change the way advisers serve clients, it also redefined the way a majority of clients were to pay for that service.

Since RDR, advisers have had to develop robust client centric service propositions which demonstrably show they are providing ‘good value for money’ – the levels and types of service they provide, how they charge, and how they proactively communicate this package. Adviser business models have had to accommodate lower upfront revenue as well as ways of generating and maintaining on-going servicing fees.

I know from talking to many advisers that there is still work to be done in order to protect revenue and avoid client fatigue in paying for an on-going service. Here are a few ideas to consider if you’re concerned your revenue might be at risk.

 Getting to know your client

This sounds obvious, but it’s a prerequisite of any adviser intent on building a long-term and profitable relationship with their client – what makes them tick, what are their personal goals, their ambitions and aspirations, what they value – and what they don’t?

Going the extra mile

With some careful thought, you can exceed client expectations. Using ‘additional’ client data over and above mere tick boxes can help cement a relationship and add to the perception of delivering greater value. Remembering personal facts and snippets of information, then replaying them in ad hoc conversations or review meetings for example.

Look for the personal touch when communicating

Clients will value more personalised approaches reflecting their specific interests and preferences. For some this might be detailed investment commentary, whilst for others it could be quick read material which summarises the key points.

Content marketing is a skill advisers should be getting familiar with. It involves creating thought leadership pieces, sharing content and ideas via blogs, videos, articles, social media and other content via the online channels such as Facebook, LinkedIn, Twitter, Instagram and the like. This material shouldn’t overtly sell a product, but should reinforce your status and expertise as an adviser to work with and trust.

The tangible evidence of advice

Let’s take it as read that the advice you provide is professional and sound. But what about the way it’s presented?

The advice report – I’ve always believed that a bit of extra engagement goes a long way. Making the report as personalised as possible by adding images to illustrate known goals, for example. The choice of language you use to describe not only your advice, but also where you add value is important – keep it plain, simple and jargon free.

Client reviews – As good as many of them are, don’t rely on the standard platform review packs to carry the day. Clients will often miss the context of the information by going straight to the big numbers – this year’s total value vs last. Clear unambiguous explanations are required if clients are to be reminded that performance is to be understood in relation to market forces, and their stated goals against their risk profile and time horizon.

Value added services – We all like to think we’re getting something extra for our money and it’s no different for clients of financial advisers. Setting up trusts for life cover for example, or organising income drawdown and more could, if decided, be services included inside of a fee arrangement.

Many advisers also forge relationships with trusted providers of other professional services such as lawyers, accountants and will writers, and will proactively recommend these businesses to clients should they have the requirement.

Technology as value added – Over and above technology playing an increasing important role in the way advisers deliver first-class advice and excellent client service is its positive role in customer engagement.

Investing in the right CRM software can help advisers’ segment clients by a number of characteristics and send tailored, subject specific, timed and relevant information or promotions via email and social media.

Remember emails and social media posts can all carry links directly back to your company website.

Why is all this important?

It’s because the dangers of not being ahead of the modern adviser curve are potentially damaging. Firstly, clients are becoming more savvy and demanding about their expectations from financial advice, now that they ‘overtly’ pay for it. Secondly, alternative technologies such as robo-advice are likely to seduce some higher net worth advised clients with the view to lowering advice fees. And thirdly, some advisers are already investing in leading-edge technology and offering more competitive fees.

By adding a robust value proposition and some demonstrable evidence of providing additional value, over and above raw fees, advisers will be set fair for long-term and profitable relationships with their clients.

Published on 6th October 2017