IFAs need to build their identity which should help their potential clients understand what they are good at.
During a training session with IFAs, I conducted a small exercise. I told them that a friend of my mine has recently come back to India from Dubai and was looking for an advisor. I asked the IFAs to give me one solid reason on a piece of paper on why I should recommend their case to my friend. And guess what the most common reason given by IFAs was – good service.
What is the problem with ‘good service’, you may ask?
First of all, it is very common - If 50% have given this answer, can I send half of the class to my friend? Secondly, service is ‘hygiene’. In today’s times, good service is a given and expected almost like an entitlement. The client will say you are not doing me a favour by doing service – it’s a part of your job. Also, service is vague because definition of service is different for each person – paperwork, financial planning, investment selection etc. Finally, service does not give anyone a vivid sense of what you do that is better than others.
Moral of the story – Have we created a clear identity about us that gives people a reason to do business with us?
What is a brand?
A brand tells everyone what you stand for. In other words, your strengths, capabilities and values are known to all. Think about all the successful professionals you know – lawyers, doctors, architects etc. In almost all the cases, you will be able to recall their strengths and capabilities spontaneously. In most of these cases, their brand will have enough ‘power’ to pull their clients towards them
A great advantage is that a brand gives you clarity and focus. In any business/profession, you do not have infinite resources. When you are clear about your brand, you will go after the right clients and undertake the right activities.
Pre-requisites for building a brand
So, how can you as an IFA go about ‘building’ your brand? Let us begin with a few pre-requisites for branding
1. Know your strengths and weaknesses: Branding is not about a logo or clever or pompous claims. It has to be rooted in your inherent strengths. Any promise or claim made by you as an IFA has to be matched by your competence and intentions.
2. Know what and whose needs are you trying to fulfill: Example – ‘I will help young executives and professionals plan and reach their financial goals’
3. Know what and how you are going to offer: Example – ‘I will reach these young executives and professionals through their work places by offering financial education and customized plans. In return, I will charge them an annual fee’.
How are brands created?
Let us start with the obvious, i.e. the basic tools and mechanics – logo, visiting card, marketing literature etc. are what give your brand a physical identity. Web sites and newsletters too are popular branding tools with IFAs worldwide.
But though the physical manifestation – logo, visiting card, brochure etc. is what is visible, everything that you do must reflect it. If you are looking to build a practice around HNI clients, your office location, decor and your personality can not be shabby. As they say, action speaks louder than words.
Brands are built over time. You need to be consistency, predictable and regular in what you do. So if you have a monthly newsletter, your views and recommendations have to be consistent; it must reach your clients by a fixed date every month and you must persist with it over time.
Summing up
Your brand must reflect the desirable attributes of your business. It must be matched to your strengths. To ensure it resonates with your chosen segment, every touch point must reflect it.
