Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
Whenever I interview a prospective coaching client, I first ask them to describe their practice to me as if I was a potential client. Most people stumble because they don't have a clear understanding of what they are offering beyond their investment advice. I was working with several strong advisors from Florida and asked each of them to give me bullet points that demonstrate the strength of their practices. I heard the following:
- 45 years of experience;
- We build trust;
- We give proactive advice;
- We get to know you beyond your portfolio; and
- Full solutions.
When I heard those bullet points, I thought back to the training I had very early in my career. That training was to know the difference between features and benefits. Facts are important. But just stating the facts doesn’t tell the prospective client what it means to them. It's too vague.
How to expand on those bullet points to convey your value?
Here are a couple of examples:
- 45 years of experience is a fact and it is important. But what is in it for the client? Among the benefits for the client:
- You will get level-headed advice.
- We have helped our clients circumvent both good and very difficult markets.
- Proactive advice is a fact. The benefit to the client is making decisions in anticipation of changes in markets. You show them that they shouldn’t chase the latest trends. You help them have a disciplined and defined approach to decision making that allows them to weather the inevitable turbulence of financial markets.
- Being planning driven is the core of a great practice. But for the client it is:
- Achieving their goals within the risk they are willing to take.
- Making sure that their estate passes to the people or institutions that the client desires.
- Providing peace of mind.
Conveying your value should be easy. Consider this example:
I have a small, concierge-sized practice with 100 or fewer clients. And because of that we offer exceptional client service, which we call “12-4-2.” That means we contact every client at least one time per month and four of those contacts are reviews, two of which are in-person. We also have a planning-based investment process that manages risk as well as fulfilling investment goals. We work best with those clients who have $1,000,000 or more in investable assets.
In just a few short sentences, you make clear the distinction about your practice compared to other FAs.
And, when speaking with a prospect or COI, add this question to a conversation: "Tell me, what are the value-added things you receive from your current provider? What's their service commitment to you?"
Very few advisors can comfortably recite their distinguishing characteristics and, of course, their clients can't either.
The next time you are talking to a prospective client about the facts of your practice, tell them about what these facts mean to them. It makes your practice a lot more appealing.
Supernova Consulting President Rob Knapp is the author of “The Supernova Advisor,” “Supernova Multiplier,” and co-author of “Supernova Teams.” Our trained coaching team works with financial advisors and their teams to bring balance in their lives, increase client satisfaction and grow their practice. Find out more or to set up a free consultation visit our website at www.supernovaconsulting.com or contact [email protected].
A message from Advisor Perspectives and VettaFi: To learn more about this and other topics, check out some of our videos.
More Breakaway Brokers Topics >
Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.