Practical ideas that can
have an immediate impact
on your practice
We’ve noticed that it’s often the little things
that you can do to improve you business that
matter the most. So we have collaborated with
Elixir Consulting to bring you ten tips based
on trends that our consultant Sue Viscovic has
picked up over time by observing successful
financial planning practices.
This guide is designed to provide financial
advisers with some practical ideas that can
have an immediate impact on their practice.
Contents
Tip 1 Use an action list
1
Tip 2 Client feedback round table
2
Tip 3 The client experience book
4
Tip 4 Use a predictor graph
6
Tip 5 Shorter Statement of Advice
10
Tip 6 Sit in with your client’s lawyer
12
Tip 7 Use a live scribe pen
14
Tip 8 Draw the family tree
16
Tip 9 The how’s things call
18
The action list
will save you time
and should lead to
you completing the
Use an action list
How often have you asked clients for information in a meeting that they have forgotten to provide? e.g. sending you a payslip, or forwarding a copy of their latest super statement.
Forgetful clients cost you money as it requires your staff’s time in following up your clients for the information. Using an action list is one way to deal with this common problem.
How does this work?
You start by creating an Action Item List template that includes a column for the summary of activity, the person responsible and the due date. Make sure your staff place the action list in each new client file ready for your meetings. As you come up with actions required for either you or the client, write them on this list. Take a photocopy of the action list and give it to your clients as a handy reminder to take away with them. You can then keep a copy and your staff will have an easy reference on what they need to follow-up.
The action list
will save you time
and should lead to
you completing the
SOA sooner.
2
Client feedback round table
How often do you find out what your clients really think about you? Have you sent out client surveys in the past? If so what information were you able to gather and did you achieve the outcome you wanted?
Whilst an online or written feedback survey can be useful when surveying your entire client base, you often don’t get deep insights into your practice, the areas that you are excelling in, or the potential areas for improvement. This is where our second tip comes from – you’ve heard of Boards of Advice and you’ve heard of client feedback surveys. This idea combines both.
How does this work?
To start off you need to make a list of 10-12 clients - that fit your ‘Ideal Client’ mould – if only you could clone those 15 and make all of your clients just like them you would have the perfect business. It is important that you call and invite them personally, explaining the purpose of the review. For example you may be entering a growth phase of your business, and are seeking the opinion of your most valued clients to enhance what you do well, and highlight any areas that can be improved.
The key to obtaining genuine information is to have an independent third party facilitate the session – you can use a business coach or perhaps your dealer group PDM.
As you would expect clients would find it hard to truly open up especially with any negative feedback if their adviser is in the room so make yourself scarce. Once the session is completed, you may wish to join the group for a drink or lunch.
The most important step when conducting any client feedback is to follow-up. Let you clients know you value the time they took to give feedback and the changes you are making to the business as a result of the feedback collected. Clients really do feel valued when they feel they have been heard and acknowledged.
Benefits of a roundtable session
The outcomes of these sessions are usually some great knowledge on where to improve your practice but can also be a great opportunity for you to hear first-hand what your clients’ value. In many cases, advisers obtain an influx of referrals after the session, as one of the topics for discussion can be how you to seek out more clients ‘just like you’, and, like magic, the clients are only too happy to oblige and provide referrals.
Clients feel valued
Insights into areas for improvement A better understanding of best practice drivers An influx of referrals
The most
important step
when conducting
any client feedback
4
The client experience book
As you know first impressions are important and they start from the minute your client walks through the reception door. This is why it’s important to make the most of every opportunity you have to sell yourself to prospective clients.
Remove all superfluous reading material from your reception area and replace it with one or two copies of the same book. This book will be your Client Experience book. Financial Planning is such a personal service, and we all know that there is no better referral than one that comes from a satisfied client. The book is proof that you are so good that your clients are compelled to write and thank you, and will have a powerful impact on your prospective clients waiting to see you.
What to include in the client experience book
It should include letters of thanks and testimonials from your clients, perhaps even postcards they have sent you from their travels (that you helped make a reality). To enhance the personal connection, include photos of your clients; retirement photos, or photos of your clients on holidays. You could also include photos of client functions, showing people having a great time and engaging with you.
If any of your advisers have won awards (and you don’t have them up on the wall) include these in your book.
Letters of thanks, postcards Testimonials Photos of client functions Awards Positive media articles
TiP3
Make the most
of every opportunity
you have to make
an impression
on your clients.
Naturally, if you are quoted in a media article (positively), or if you have had an article of your own published, these should also take pride of place.
Most advisers will at least have a few thank you cards that they have collected from their clients over the years, which can provide a start. The next step is to call your best 15 clients, explain what you are doing, and ask them to write a testimonial, or to describe in their own words, the impact that your advice has had on their lives. Then get in the habit of celebrating your clients milestones, letting them know that you are really interested in their travels and that you would love to receive postcards from them to follow their journey. The book itself will take on a life of its own - as clients get to know it, they will be keen to send you cards, etc that will earn a place in the book, and will seek out their contribution the next time they are in your office.
From an Admin perspective, it is important to keep it up-to-date and preferably place newer contributions at the front of the book. Ideally, you will use an adjustable file that you can add pages to, rather than having to move everything back each time you want to insert more content.
6
Use a predictor graph
As a financial adviser it can often be difficult to demonstrate to your clients especially new clients the real value of financial advice. Showing clients, in a more visual way, the gap between their goals and reality is a brilliant engagement tool. It can mean a powerful realisation for the client of how you can add long term value to their future.
There are a number of different types of software that you can use to create the predictor graph including XTools Plus, Reasonable Basis, even Microsoft Excel.
How you can use it
1. Start with a graph and plot Time on the horizontal axis and Money on the vertical axis.
2. Include the current value of your client’s investment assets, which provides a starting point.
3. Quantify their future goals into a dollar value (the amount they need at retirement to fund their lifestyle).
4. Joining these two figures shows them the trajectory of what their savings must do in order to reach their desired outcome. 5. You then take some headline figures from your fact find...their
current salary, amount of super contributions, savings program, and make some assumptions around their likely risk profile. 6. Explain that this is a very rough estimate for now, and
that you will plug in their big spending items along the way (holidays, private schools etc). You can then firm up the numbers prior to giving them a copy in their SOA, but based on their current activities, their likely outcome will be...and apply that line on the graph.
Examples
Here is an example of two graphs created using XPlan software. Unfortunately Xplan does not allow you to create a chart that overlays two outcomes on the one graph so as you can see one graph shows a client outcome with advice and the other graph shows a client outcome with no advice.
In most cases, the end point will fall far short of their desired outcome. You then explain that it is your job to determine strategies that will maximise the probability of achieving their desired end point, and you will plot out the projected outcome of your recommendations further in your advice process.
8
Record the
predictor graph on
client files and bring
it up again at the
annual review.
The outcome of that meeting will usually be a very powerfulrealisation that they need the services of a good financial planner to help them achieve their goals. If you have conducted the rest of your engagement process well, they should decide that
you are that planner and be happy to sign an engagement letter to appoint you to assist them.
On the odd occasion that the graph shows that they will meet their destination, you are then able to throw up scenarios as to why they still need your advice - if they get their asset allocation wrong, have unexpected expenses, or if they have a year or two without income (through illness, redundancy etc).
Benefits of using a predictor graph
The predictor graph provides your clients with a graphical representation of the value of your advice but can also be a handy segway into discussing financial planning concepts such as market volatility - you can explain that the actual graph won’t always be a straight line - that it will go up and down like the stock market, but the long term trend should be in an upwards direction.
Demonstrate the value of financial advice Explain market volatility and the long term
impact Highlight the need for risk insurance Show the impact of various scenarios Plot client’s progress
Record the
predictor graph on
client files and bring
it up again at the
annual review.
The predictor graph will only work if your clients continue to earn their current level of income and don’t suffer illness or injury – highlighting the need for risk insurance. Remember to use the graph at subsequent meetings to demonstrate the impact of a number of scenarios on you clients’ savings. e.g. show the impact of changing the amount of their super contributions, or withdrawing sums of money for holidays along the way. Undoubtedly, you will need to make adjustments along the way as their circumstances change, but it will be a great way to frame your conversations around their journey toward their ultimate goal - and provide a visual basis on which to celebrate their milestones along the way.
Tips and traps of using a predictor graph
Naturally there are some tips and traps to making this work, and in exploring your capacity to engage this process, you will need to do at the following:
• select the right software to use.
• ensure staff are skilled at using the software.
• check with your compliance manager on what disclaimers are required.
• be very clear about explaining your assumptions and the fact that this is a graphical representation of concepts
10
Win the
paper war: the
SOA does not need
to be more than
10-15 pages.
Shorter Statement of Advice
Are you sick and tired of giving clients reams of paper every time you prepare a Statement of Advice? We have now seen evidence that an SOA doesn’t need to extend beyond 10 - 15 pages. If your client is happy to sign a document acknowledging they have access to a computer and the ability to access information online, then you can simply burn the supplementary information – (Product PDS’s and Research reports) onto a CD rather than printing out reams of paper. An alternative is to send your clients a soft copy of the documents as an attachment to an email, provided that the files are not too big.
Benefits of a shorter SOA
There are a number of benefits to a shorter SOA including:
• Less wastage – how often do clients leave your office with PDS and Product Information that they are never going to read?
• Navigating through an online PDS is much easier online as clients can skip to content that interests them immediately.
• Online media allows the client to watch videos and access product information in a variety of formats not possible in traditional mediums. Less wastage Clients can navigate through a PDS more easily More dynamic content possible online
12
This may be
a service that you
price into your
engagement fee
or reserved for
Platinum clients.
Sit in with your client’s lawyer
As a financial adviser you are often involved in estate planning discussions with your clients. This tip sees you taking the next step in the process and sitting in with your client’s lawyer when your client is completing their estate plans.
With the clients’ permission, you can prepare a briefing document to the solicitor who is preparing your clients estate plans and by attending the meeting, can also provide further insight into the financial plan you are implementing.
Benefits of helping clients with estate planning
Not only is this a great outcome for the client - they feel that they are receiving great service and gain confidence that their affairs are protected - but there are also benefits to the adviser. You will obtain a greater depth of knowledge on the client - which will be useful when creating their financial plan.
The overall outcome usually includes new referrals as your client feels so impressed by the service they have received that they discuss it with their associates or as a result of the estate planning process you may be introduced to family members who may also seek your advice.
Client benefits Adviser benefits
Receive greater service Increased confidence
Greater depth of information Potential for referrals
14
Use a live scribe pen
Don’t let note-taking get in the way of your conversations with your clients. In the past, you may have recorded client meetings on digital Dictaphones and then either saved the sound recording on the client file or had the recording transcribed. The cost of transcribing recordings can be high and it is often difficult to retrieve the information you need at a later date. One solution is the Live scribe Pen which allows you to record audio and link it to what you write so you can easily navigate to key points later.
How to use the live scribe pen
At a cost of approximately $300 this handy ‘spy pen’ which includes a camera is a pen and digital recorder in one. The live scribe pen records audio and links it to what you write. Simply write headings or draw pictures relating to the topic you are discussing as you go. Missed something? Tap on your notes or drawings with the tip of your live scribe pen to hear what was said while you were writing.
Easily review audio by tapping on the headings or pictures with the tip of the live scribe pen Write headings/draw pictures that relate to the topic Record audio
Upload notes to your computer
If you’re thinking my clients may not like being recorded, it is extremely rare that they object. You naturally need to ask their permission, but when you explain why you prefer to record their meeting rather than slow down discussion with note taking, they usually agree happily - and then forget within a few moments that it is even there, and relax into your conversation.
Benefits of using a live scribe pen
The live scribe pen can be a very effective tool in ensuring you can focus completely on your client rather than trying to keep up taking notes. You can also go back and check on items that need clarification or that you may not recall. If you use a para planner
Give your clients
your undivided
attention.
Complete focus on the client Easily review items from the discussion Helpful for the Paraplanner Easily transfer your notes to a computer Can save you time and money
16
Draw the family tree
Have you ever gotten through the entire fact finding stage with a new client only to find right at the end that they missed telling you important facts about their family history that will impact on their financial plan? Drawing up your client’s family tree can be extremely beneficial and is worth exploring with both new and existing clients.
As you complete each ‘branch’, of parents, siblings, children, etc, you can explore any potential impact on your clients’ financial plan. You may uncover likely inheritances, potential hereditary health problems, parents requiring financial support, unstable marriages with children… all factors that will require some attention in terms of financial planning.
Creating a graphical representation of the extended family can also allow the adviser to identify other family members who may benefit from their advice.
Benefits of drawing the family tree
As you complete each ‘branch’, of parents, siblings, children, etc, you can explore any potential impact on your clients’ financial plan.
Uncover areas for attention
Likely inheritance Potential hereditary
health problems Dependants & financial support
Identify potential referrals
Explore the
impact of each
‘branch’ of your clients’
family tree on their
financial plan.
18
It’s worth the extra
effort - it costs
4 times as much to
attract new clients
than to keep
existing clients.
The how’s things call
How often do you contact your clients? Clients who receive at least 10 - 12 ‘touches’ per year have a greater connection to their adviser and feel better serviced. The Business Health Future Ready reports consistently demonstrate that clients who are more engaged are more profitable clients to the firm.
If you provide a full review once a year, a newsletter four times a year, a budget update, a client function and a Christmas card... how else can you ‘touch’ your clients? The concept of the “How’s things” call is self-explanatory. It is a scheduled call in your diary (which is not a formal appointment in the client’s diary) where you simply call the client and ask “How’s things?“…this can lead to a number of different conversations.
Benefits of keeping in touch with clients
By keeping in touch with clients even if you are just chatting about what has been happening in their life you start to develop a closer relationship. They might discuss a financial issue that has recently occurred which may result in you needing to provide further advice or ‘tweak’ their financial plan or this may lead to a referral. Apathy is the greatest impediment to most clients achieving their financial desires - they don’t implement the things they know they should do to achieve what they want.
Staying in touch with your clients between reviews may be enough to give them the accountability they need to stick with their financial plan. The worst case scenario is that your client thinks “Isn’t that nice - my adviser is calling to see how I am”.
Develop a closer relationship with clients Existing clients are more profitable Tweak clients’ financial plans Gain referrals Make clients accountable for sticking to the ‘plan’
20
Tap into social networks
As business people we are always looking for ways to attract new clients and this is why social networking cannot be dismissed as simply a fad, it is a must for today’s financial adviser. It’s the way more people are finding services and therefore can be a powerful source of new clients.
Before delving into this new area, you need to pick the right tools. Let’s have a look at the top three social networks for advisers; Facebook, LinkedIn and Twitter.
With Facebook, a good place to start (once you have a personal profile) is by creating a fan page for your business as they’re public, searchable and allow you to add links, video and start discussions.
According to 2developbusiness Business Development Consultant Hans de Kraker “There are people who browse Facebook looking for services so the main thing is to have a shop front so you’re open to opportunities when they arise, remember don’t just spam your friends as this alone won’t result in new business leads”.
Create a fan page and you can add links, videos and start discussions
Best for farming recommendations about your work
Can be used for customer referrals, promotion and lead generation
LinkedIn is best for farming recommendations about your work. However don’t ask all your connections for a recommendation as awkward recommendations may do more harm than good. Twitter is also worth a look as it can be used for customer referrals, promotion and lead generation. Twitter’s not going to make your business but it’s a way of getting a competitive edge de Kraker says.
The search box on the right hand side of your personal Twitter homepage is a good tool to use to find out what people are saying about a certain topic, a certain business – even you. There are some traps to look out for when you are starting out with social networking. Make sure you think carefully about what you publish on the internet as it’s permanent and easily found through searches. It may be more acceptable to publicly apologise when you make an online faux pas but with news travelling at light speed, it may be too late for your reputation.
Avoid posts that seem unbalanced or over-emotional. Clients don’t care what their financial planner likes or hates, save this content for your personal account.
When you’re monitoring social networks, act on comments relating to you or your business. We used to use 1800 numbers for support, complaints or praise and these days, a tweet is like a phone that’s ringing.
You’ll get results if
you persevere but it’s
not going to happen
immediately.
22
Summary
So there you have it, ten tips that we hope have provided you with some practical ideas that can have an immediate impact on your practice.
Maybe you’re doing some of them already. Maybe you think some of them won’t work in your practice.
If you can use one of these ideas to add value to your clients - or if one of these ideas creates a totally new idea for you to implement, then we’ve done our job.
For further
information contact
your local Zurich
Investments BDM on
1800 004 480 or visit
www.zurich.com.au/
investments
Important information: This information is general in nature and does not take into account personal
objectives, financial situations or needs and is not a personal recommendation about any securities, stocks or options mentioned. This presentation has been prepared specifically for the exclusive use of financial advisers, researchers and trustees. It is not to be published without the prior written consent of Zurich Financial Services Australia Limited ABN 11 008 423 372. Unless otherwise indicated the information in this presentation is, dated May 2011 is given in good faith and has been derived from sources believed to be accurate as at this date and is subject to change. Neither Zurich Investment Management Limited ABN 56 063 278 400
Zurich Investment Management Limited ABN 56 063 278 400 AFSL 232511 5 Blue Street North Sydney NSW 2060 Zurich Service Centre
Telephone: 1800 500 655 www.zurich.com.au A M U A -0 03 99 4 -2 01 0 - ZU 12 28 9 V 2 05 /1 1
