We are in the experience business

Everyone knows that, following the departure of so many financial advisers over the past few years, new client opportunities have probably never been more plentiful for those who remain. However, as with all things in life, it will not always be this way.

Regardless of market conditions, most professionals strive to ensure their value proposition and the outcomes they deliver are the best they can be.

Another topic that has captured the attention of financial planning business owners over the past three to five years is pricing. Almost every adviser has reviewed their business approach, including:

• The types of services and advice they provide.
• How those services are delivered.
• The profitability of their business model.

Like it or not, many advisers have increased their client fee levels.

For the most part, clients have recognised the value of the outcomes their advisers provide and have readily accepted those increases. As the old adage says, “Price is only ever an issue in the absence of value”.

However, as business owners and advice practitioners, we must continually demonstrate our value, articulate what that value is, and ensure clients both receive value and perceive that they are receiving genuine value for money.

Delivering value and helping clients feel they are receiving valuable outcomes are two different, but equally important, objectives. To achieve both, we need to optimise their experience.

In today’s crowded advice market, expertise is only part of the equation. What keeps clients loyal is the way their financial planner makes them feel throughout the relationship.

Yes, value matters, but the client experience is a critical part of both the value clients receive and the value they perceive.

What is the client experience?

Client experience can be defined as a client’s perceptions, both conscious and subconscious, of their relationship with your brand as a result of every interaction they have with your business throughout the client lifecycle.

It is far more than simply the services you provide

Every time a client interacts with you or your business, their experience influences the future of that relationship. Whether they meet with an adviser, attend an event, receive communication from your team or visit your office, they leave with a perception that shapes future decisions.

These collective moments create the overall client experience and influence the quality of the relationships advisers build with clients. Strong, positive client relationships can significantly enhance both your marketing effectiveness and the lifetime value of your client base.

For example, if:

• Your average client retention period is 10 years.
• You service 100 ongoing clients.
• The average annual fee is $6,000.

What would be the impact of increasing retention by just three years?

100 clients × $6,000 × 3 years = $1.8 million.

Whether clients are delighted, satisfied, dissatisfied or unhappy, their experience directly impacts your bottom line. It makes sense to continually look for ways to improve the client experience.

Three strategies for delivering a powerful client experience

There are certainly more than three things advisers can do, but these strategies can make a significant difference.

None of them are particularly new. Most are obvious and many businesses are already implementing versions of them. As always, the question is: Can we do it better?

1. Personalise your service

This may sound obvious. Greater personalisation generally leads to stronger relationships. However, how much thought, effort and consistency are we really putting into our approach?

Personalisation also extends to how we communicate.

The only way to truly understand what clients want from your communication is to ask them. So why not make this part of every review meeting?

Include “Communication” as a discussion item in your meeting agenda and consider asking questions such as:

• How satisfied are you with our communication?
• How can we improve communication with you and your family?
• Would you like us to communicate more or less frequently?
• Is there a preferred method of communication you would like us to use?

Of course, the challenge then becomes delivering communication in the format clients prefer. When information, updates and educational content are delivered in ways that suit individual clients, they are more likely to engage with, absorb and appreciate the message.

That is something worth working on.

2. Provide personalised client experiences

Financial planners can create stronger client relationships by moving beyond the delivery of advice and designing personalised experiences that make clients feel understood, valued and confident over time.

Meaningful engagement opportunities can be built into a structured client journey.

Before you meet

Preposition your expertise, authority and value by delivering:

• Introduction pack outlining your services and value proposition (day 1).
• Client Value Proposition video link (day 4).
• Relevant article or eBook aligned to the client’s stated needs (day 7).
• Meeting confirmation phone call from a team member (day 12).

Onboarding new clients

Reinforce your service, value and commitment by providing:

• Welcome kit and thank you package, including team contacts, service information and key value propositions (immediately following implementation agreement).
• Product implementation progress update (7 to 10 days following lodgement).
• Product completion notification (upon completion).
• Quarterly newsletter.
• New client induction and details confirmation (7 days following implementation completion).
• New client survey (following induction).
• Six month review (month 6).
• Educational communication, eBook, video or similar content (month 8).
• Annual review meeting (month 12).

3. Continue delivering positive new client experiences

Creating a great onboarding experience is important, but the real opportunity lies in maintaining that experience over the long term.

Consider incorporating:

• Quarterly newsletters.
• Educational communications such as videos, eBooks or articles (months 4 and 8).
• An adviser phone call (month 6).
• An annual progress review meeting or more frequently as required.
• A client survey following the annual review.
• A client event invitation every 12 to 18 months.

The bottom line

Creating exceptional client experiences requires organisation, consistency and commitment.

However, investing the time, effort and resources into building experiences that genuinely resonate with your clients will strengthen trust, reinforce your value proposition and create positive moments throughout the entire client journey.

In an increasingly competitive advice environment, expertise alone is no longer enough. Clients remember how you make them feel.

The advisers who consistently deliver outstanding experiences will be the ones who retain clients longer, earn stronger referrals and build more valuable businesses.

The team at Capstone can you create more personalised and meaningful client experiences. To find out how contact:

Kym Turner
Senior Practice Manager
Capstone Financial Planning
P: 03 8622 0719
E: k.turner@capstonefp.com.au