While advisers seem confident that their clients know they are delivering unique value, the situation changes dramatically when we switch to prospective clients. Clients are in the position of having experienced the impact of what you do and should, by extension, recognize and appreciate the value you provide.
Clearly that is not the case with prospects as they are yet to get a first-hand experience. Yet, your growth plans can be negatively affected if that value is not effectively communicated to prospects. So your website is a good place to start when it comes to effective communication of value.
An independent survey by Financial Planning Association (FPA) shows that while advisers generally felt prospective clients would understand the products and services available if they visited their site, far fewer felt those same clients could understand the value of what they provide and for whom. There are significant gaps with respect to adviser perception of the value they deliver, client perception of that value and the extent to which value is clearly communicated to prospective clients. Although the value that advisers provide is generally high, it seems likely this is an issue of communication.
To understand the issue more clearly, the survey asked respondents about how they communicate their value. 78% of advisers say they have crafted some statement that defined their value - it can be described as a value proposition, mission statement or elevator pitches. Interestingly, several advisers felt that ‘artificial’ expressions of value were ineffective; they sought clarity and authenticity over the elevator pitch.
As part of the research, FPA gathered close to 500 statements of value from advisers. A review of those statements suggests that advisers generally fall into one of five categories when describing the work that they do. Three of those categories focus on the role of the adviser, one on the outcomes and one on the work being done.
- The Expert: Highlights technical expertise to build adviser credibility
- The Guide: Highlights adviser role in guiding the client toward financial independence
- The Partner: Highlights adviser role in helping clients understand their own goals and dreams
- The Outcome: Highlights the outcome adviser is trying to achieve for client (e.g. building wealth)
- The Facts: A simple statement of the work done (e.g. a financial planner)
How can your statement of value be differentiated?
- You can make it very specific about the role and work or you can design it to generate interest and encourage the prospective client to ask more questions.
- You can be focused only on products and services or client objectives.
- You can focus on wealth as the outcome or the benefits of wealth (e.g. peace of mind)
Finally, it is all about communication! Articulating and communicating value is a simple exercise. These exercises are designed to help you and your team internally by highlighting where you will focus and externally by helping prospective clients understand what you do. While the process begins by crafting a clear statement of value, it’s important to recognize that you communicate value in many ways, including your website, your process and your offer.
Many advisers take great pains to explain and reinforce value at the outset of the relationship and then assume the value is obvious from that point onward. Too often, you deliver value but fail to remind clients what you are doing. Consider creating a service agreement that outlines everything that you provide to clients. Review that at the outset of the relationship and review it annually to ensure that you have delivered on your promises and clients are clear about everything you have done on their behalf.
Reproduced substantially from the survey by Financial Planning Association - ‘2016: Trends in Practice Management: Understanding and Driving Client Value.’
