Everyone loves guarantees. For investors, this guarantee takes the form of returns on their investments.
I recall talking to prospective clients a few years ago and while helping them understand the benefits of investing in mutual funds they suddenly popped the question, “Is the return guaranteed?” Not their fault totally. Many of them have only seen or heard from their parents about the guaranteed returns in PPF, Fixed Deposits and in their favourite insurance policy as well.
Times have changed. Most guaranteed return instruments (PPF, NSC etc.) do not deliver returns that can help your investors reach their financial goals. Serious investors also have come to understand that market linked investments cannot offer guaranteed returns. But alas, there are few such investors.
The fact is that a guarantee works. You are more likely to get an investor to be your client if you can offer a guarantee. Sounds strange! Yes, it is.
To clarify, I am not talking about a guarantee of returns, unless your client’s entire portfolio can be put in fixed return investments.
I am talking about “guarantee of service”.
5 guarantees that your client is going to love
- I will always listen to you carefully and understand your goals and purpose
- I will share relevant information with you, discuss pros and cons of the decisions and help you invest and meet your life goals; I will empower you by sharing my knowledge with you
- I will always take your call and speak to you or reply to your messages when the markets are falling or your portfolio is not doing well
- I will always work in your best interest
- I will always be transparent and disclose my earnings and fees from you
You can always add more or modify the guarantees given above. The bottom line is “do you have a guarantee statement”. Please consider one if you don’t.
How should you do it?
1. Prepare a Service Guarantee statement for your clients
2. Print it on a paper and sign it and give it to each one of your client
3. Ensure that you deliver on every guarantee
In 6 months to a year, I guarantee you that your clients will have become the biggest ambassadors of your business/service. You will not only increase business from existing clients but your referral rate will shoot up sharply.
The simple point is that clients get tremendous comfort when they see commitment from the advisor.
Are you ready to make it? Do share your views.
The article has been contributed by Vipin Khandelwal, Founder and CEO, Learning Infinite.
