Changing the name from IFA to MFD would not make a significant difference to the clients, as long as distributors continue to deliver the high quality services to them, feels Ashutosh Bishnoi, MD and CEO Mahindra Manulife MF. He was speaking at Cafemutual's webinar Mindful Musings. The topic was "Building and Maintaining your Reputation".
"What matters to the client is the benefits they are getting from you and if you are delivering on your promises and not whether you are called MFD or IFA. These terms are internal to the industry and do not matter to investors," said Bishnoi.
In fact, Bishnoi is of the view that MFDs should look at this name change regulation as an opportunity to build their reputation better. Suggesting different approaches to change the name, Bishnoi floated some interesting ideas based on the individual's own name, location etc.
For instance, it could be the name of the distributor, acronym of partners or based on the location such as Pune Distributors or Paris Distributors. Also, it can be based on religious or mythical concepts like Subh Labh Distributors. He added that his favourites include esoteric names such as Sunshine Distributors or Springtime Distributors.
Further, Bishnoi said that the name of the company can be used to market some of the solutions that distributor offers. For instance, if the company's name is Sunshine, the distributor can create a Sunshine Education Plan - a package to achieve education goals of a client. This package could contain 3 SIPs of different fund houses and investment in sovereign gold bond every six months, but it should have your company's name.
Use of Content
Bishnoi further said that MFDs should use content to enhance their reputation. For this, they need to come up with original content at a regular frequency. It can be in the form of videos, articles, infographics and so on. And can be circulated on various free platforms on social media. Note that different platforms need different content. For instance, you can upload a longer video on YouTube but it needs to be crisp if it is on WhatsApp and newsy if it is on Twitter.
Another method in brand building is using traditional media outlets such as radio, television and newspapers. These days even regional television channels, radio programs and newspapers are offering space to financial news. They need experts who can explain complex financial issues in simple terms. MFDs should use their network to gain entry to these channels. While one cannot use these platforms directly to advertise your own business, the fact that you are occupying that space as an expert can help you build a strong and credible brand.
Bishnoi also suggested some quick steps to build your brand.
- Define who you are and what you stand for in this business
- Have an elevator pitch i. e. try to summarise some of the unique things about you in one sentence and market it at great length
For instance, Bishnoi explained that a signage of his favourite neighborhood Udupi restaurant says that 'The owner eats here'. This is a simple yet effective way of saying how much involved you are in your business
- Set some of your own rules – e.g. be polite, be the first with bad news, never lie and so on - and stick to it no matter what the situation
- Share your knowledge without fearing that it will be copied
Other key takeaways
- A well-built brand allows you to position yourself as a more premium product and service than your competitors
- Find out the reality of your reputation by asking clients what they don't get from you that they either expect or get from someone else
- Always ask people who leave your team what they think about you. This will give you more honest feedback than asking your friends, family and current employees
- Ask for referrals immediately after you do something good for clients. It is likely to work better rather than asking referrals because you had done something good 6 months ago.
- Look to increase wallet share rather than acquiring clients
- First build your brand based on some expertise and as profitability increases then look to expand to other products. Do take into consideration if the resources available with you would be adequate to execute the expansion
