How much do you think your client values your advice? Is it only limited to the conversations on their investment outlook and the ups and the downs in their portfolio? If this is the case, then you may be missing out on an important opportunity to educate them about the real value of financial advice.
Today’s consumers are looking for an advisor who tends to look at their investments carefully but then goes well above that service. By expanding the conversation, you have an opportunity to connect in the ways that really matter.
In case of your existing clients, they have been with you for years. They are likely to understand that you are a trusted partner and have experienced the benefits. But newer clients and prospects may need to hear something different from you.
Though they want retirement planning and wealth management, they also need someone to assist them with their most basic financial challenges: getting out of debt, saving for college, and reducing their financial stress.
A recent Financial Consumer-Advisor survey conducted by SourceMedia Research shows striking differences between what consumers say they need from advisors if they decide to work with one and what advisors believe to be the value they provide. In many cases, advisors themselves are discounting their own value by focusing on areas that don’t resonate with prospects.
A whitepaper on ‘different ways to show clients your value’ by LPL Financial provides interesting insights to help you build better relationships with clients.
The trust factor
Consumers are often nervous about letting someone else into their financial world. They may be hesitant to give up control of their money. In the survey, when asked about working with an advisor, consumers singled out trust as being among the top attributes they are looking for. Advisors may not understand consumers’ anxiety because that might not be the experience of their own clients. In the survey, they cited qualities like unbiased advice and being client-focused as one of the biggest concerns.
Plan for every client
Clients want you to see them as unique individuals. They want a financial blueprint that is tailored to their specific financial goals and priorities, not an off-the-shelf solution that only addresses a few narrow areas. Advisors who emphasize their core mission to help create a financial plan that meets a client’s diverse needs can stay competitive.
25% said they’re looking for help in reducing their financial stress and 26% want help in improving their quality of life. However, only 15% and 18% of advisors, respectively, believe those to be their clients’ top objectives. “Help prospects see that, in order to get the most out of their money, they must have a clear idea of what purpose it will serve. Emphasizing how personalized financial advice helps them get to the heart of their hopes and dreams and will help provide the laser focus they need to reach them,” suggests the white paper.
The whitepaper suggests a few best practices which will help you to put trust in the centre of all client interactions.
- Make client education front and centre: Finances are complicated for many consumers. Understand that they may have limited knowledge of the subject and they need an unbiased partner to help them understand it. Create a client portal for personal finance articles relevant to the majority of your clients, conduct workshops on budgeting or debt management, and use the annual review as an opportunity to educate your clients on an important financial topic.
- Stretch yourself: Not all clients are looking for retirement planning, at least not initially. Make debt and college planning a central part of your service offering, so prospects know you are an advisor who understands their current challenges.
- Leverage technology to support and build business: Integrate technology strategically, in key aspects of your business—use social media to connect with prospects.
In an evolving industry, where the perception of trust has changed and the value of advice is being challenged, it is imperative that advisors connect with clients and prospects by being attuned to these shifts. Today’s prospects have the earning power and assets to work with you but they haven’t yet heard the value of financial advice articulated in a way that is relevant to them. Be the advisor that changes their perceptions.
Reproduced substantially from the LPL Financial white paper.
