Kelowna, British Columbia (June 1, 2010) - Pareto Platform today introduced the Pareto Platform powered by Microsoft Dynamics CRM, a SaaS (Software as a Service) based CRM solution designed exclusively for financial advisors.
“In today’s environment, organizations need to be equipped with the right technologies to help them succeed,” said Brad Wilson, general manager, Microsoft Dynamics CRM. “This new solution shows that Pareto Platform is taking a step in the right direction to keep businesses in the financial services market sharp and competitive.”
The Pareto Platform Powered by Microsoft Dynamics CRM is a customized client relationship manager integrated with a complete suite of compliant practice management and business development tools and templates. It also includes a turnkey virtual coaching process with instant access to practice management and business development coaching modules consisting of video or audio tutorials, additional reading material and actionable steps and tools to implement each module/concept that relate directly to running a better practice.
“I truly believe this solution will take the industry by storm. The strength of the Microsoft chassis along with the insights we have made over the years in terms of what functionality an advisor actually needs within a CRM will ensure this is a best of breed solution,” said Duncan MacPherson, co-founder and co-CEO of Pareto Platform.
The Pareto Platform has a process that enables an advisor to build and strengthen client trust and chemistry by capturing and chronicling F.O.R.M. information as their relationships unfold. By having a clear understanding of their Family, Occupation, Recreational Interests and of course their Money as well as having a simple and easy place to document and access all this information, advisors can make themselves indispensible to their clients.
“A financial advisor needs to be accountable to their client’s goals and objectives—not just their rates of return, and have a complete history of every activity that the advisor and his or her staff have ever engaged in with the client,” said David Miller, co-founder and co-CEO of Pareto Platform. “This will not only keep compliance happy but it allows the advisor the ultimate in communication consistency as client relationships evolve. And of course having The Pareto Platform built on the Microsoft Dynamics CRM chassis ensures integration with Outlook, Word and Excel, and easily synchronizes with Windows phones, Blackberry or other mobile device.”
Pareto will also offer enterprise solutions and an on-premise model for wealth management firms that want to make this system available to their advisors to enhance productivity.
Pareto Platform has over 15 years experience consulting with and assisting financial advisors on how to get the most out of a CRM and has customized the Microsoft Dynamics CRM to suit the unique needs of a financial professional.
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If you’d like more information about this topic, or to schedule an interview with Duncan MacPherson or David Miller, please contact Shannon Hull at 800-215-3294 or shull@paretoplatform.com .
To listen to a recorded conference call about this topic, please click here.
Tax season is over; your clients are wondering what is going on with the markets while your thoughts might be on what is going on with potential changes to regulatory law.On top of this, your practice is facing challenges ranging from staffing and workflows to trying to provide a sense of stability in very unstable times.Running a business is hard enough during Bull Markets; it can be even more challenging during a prolonged recession.More stress is not a great formula for growth.
Our own financial services practice has taught us some powerful lessons in the past year.We have had to constantly modify and “tweak” methods and systems that have been proven for over a decade.Mostly, we have had to assess our workflows and how we leverage our most valuable asset: our time.Being efficient while we help clients and prospects cope in a strange new world has been the key to surviving and growing.
For anyone that has worked with Vestment you know that we want advisors to stay in PMS: that is, Prospecting, Meeting with clients, and Securing the relationship.Time spent outside of this is only preventing growth and limiting the number of clients you have and the quality of the services you provide.This is why people on your team fulfill all the other efforts.Efficiency in your workflow is the key to building your practice and you staying in PMS.This is why we are so dependant on these “other efforts”.
There are a lot of other efforts.Our own financial services group has over 1,000 steps in the workflow.I set up our CRM software to defined and assign each step to the right person on the team while allowing me to monitor any activity in the practice at the click of the mouse.This system allows me to manage the practice no matter where in the country I might be as long as I have Internet access.Your workflow systems are ultimately dependant on your technology systems, and that is where the rub is…
What happens if the technology systems go down?I know, because it did a few years ago when a worm infiltrated. Two and one-half weeks and $12,000 later we had recovered our data and fixed the computer architecture.This did not count the lost costs in our inactivity while we were trying to piece together everything from our calendars to client records!
I was not going to let that happen again.The first step was buying a secure router.The next step was setting up three separate computer servers, one for general company files, one for our CRM system, and one for our confidential client files.Each server had a Raid backup drive and each raid had a USB hard drive for redundancy.What was the final step? I created a complete parallel system (secure router, three servers, Raid drives, and so on) at our home that does a full backup every night.On top of this, I replace all our team’s computers every three years.
It is very complex to manage and maintain, but the system is secure, and we have not had a failure since. Unfortunately, unless you personally have my background in technology, outfitting your practice like this will cost a lot of money.
What is the counterpoint out in the field in most of the advisor offices we have visited?Mostly old computers, old operating systems, few (if any) backup systems, online backup systems that will recover your data but could take 30 or hours to restore your systems if such a failure occurred, and niggling monthly costs of third party tech support teams.
Perhaps one of my most incredible experiences in assessing technology with a client was two years ago in an East Coast advisor’s office.One highly successful advisor and three team members to support him created over $900,000 in GDC annually.It was a great organization and wonderful people.
Unfortunately his chief of staff was using an old Dell.It was running Windows 2000 as an operating system on 512K RAM with a slow DSL connection to the Internet.On top of that, her computer worked as the server for managing all the data storage and Internet access for everyone and everything in the office.The result?You would type the letter “E” and could count “1, one thousand, 2, one thousand, 3, one thousand” before the “E” would appear on the computer screen.
So, what do you do?There is an undeniable need to improve efficiency, stabilize the computer systems, minimize tech costs, while still keeping current with a constantly changing technology environment (iPad anyone?).There is also a fairly large cost to pay to match what Vestment has done internally.
Recently I interviewed Randy Olson of IVDesk (www.ivdesk.com) and learned a lot has changed since Vestment’s system was infected.Randy showed me I needed to put my head “in the cloud” to break out of the costs and system support issues faced by advisors.
Randy’s company had taken all the Microsoft Office Suite, Advent, Juncture, your portfolio manager and other financial services packages and made them work on any computer via the Internet.The software is kept up to date with the latest releases, and even my Apple MacBook Pro could run PC based Advent and Juncture software through Firefox!
Did I need backups to our data?Cloud based technology systems manage this on the Web with the same kinds of redundant backup systems used by Google.Was I not able to make it to the office due to flooding?No problem, I just stop at the coffee shop that has wireless Internet and BLAM!I’m in my system.
What if I have a problem?No problem: IVDesk has a 24 hour 7 day a week live person hotline to get me past my challenges, even if I am trying to dress up a fancy graph in Excel for a client.Most Cloud delivery systems in financial services have some form of fast acting support.
Is it stable and does it work long-term? I was astonished to find out Randy’s company had been serving the financial services industry for 8 years, and that they had never have a client leave them!
Cloud technology is systematically being adapted by many large organizations in the industry.Merrill Lynch created an energy-saving risk management platform, Wall Street has a hosted Electronic Settlement Network that offers pay-as-you-go FX trade processing, and Pareto Group has had Cloud Based CRM for years, and is now partnered with Microsoft to offer Cloud based CRM customized to the practice management needs of financial planners.Most independent Broker Dealers are offering an increasing number of applications through their websites that are “Software As A Service” (SAAS) through the web.
The combination of a controlled monthly cost for technology, little to no service or maintenance fees, not having to manage the updates to all the systems is combined with a secure backup system.We think this is becoming an important piece of the practice management pie for Financial Advisors.
Who would have thought that the speed of your Internet was more important than the speed of your computer?After all, our focus should be on serving our clients, not managing our technology!
Net-net?We have to get our head in the Clouds.
p.s.If you would like to listen to my interview with Randy, please visit
Recently, I talked to three advisors who have had significant success bringing in new clients this year.
They have different approaches, book sizes, length of time in the business - and are located in three different cities.
Despite this, some consistent themes emerged. Here are three things that came out of our conversations.
You don’t win clients - other advisors lose them
The first advisor talked about an old adage in politics - Governing parties don’t get defeated, they beat themselves.
In essence, given the choice most people would rather stay with an incumbent government.
They only change when they lose confidence in the party in power - it’s at that point that they look seriously at opposition alternatives.
In this advisor’s view, the same applies to winning new clients. They’ll move on their schedule, not yours - generally when they’ve become disillusioned with their existing advisor.
This advisor believes two things have led to his success in attracting new clients:
He works to position himself with as many prospects as possible as the logical successor should they become disaffected with their existing advisor.
He tries to accelerate this process of disaffection by sharing the communication going to his existing clients.
The harder you try, the less successful you’ll be
The second advisor believes a key to his success is his low key approach - he tells prospects that he’d be happy to sit down with them any time that they feel comfortable doing so.
In this advisor’s view, the least amount of pressure gets clients guards up. And the harder you try, the more your approach smacks of desperation and scares prospects off.
Like the first advisor, he has focused on building his pipeline of prospects to whom he sends information going to his clients. He also touches base with every prospect once a year (more often if the prospect seems close to making a change) with a view to seeing if they’d like to sit down to talk about their situation.
Reduce the risk of meeting
The third advisor has found that once he gets in front of prospective clients for the first time, their comfort level in sitting down further goes up dramatically.
His branch runs quarterly lunches with outside speakers - typically one of their economists or research analysts or a portfolio manager on the firm’s managed money program.
He always buys a table to these lunches - while the bulk of the people he invites are clients, he also aims to get one or two prospects out. He’s found that prospects are more comfortable being one of six or seven at a table than meeting with him one on one - and once someone has come out to that lunch, his success rate at booking a follow up meeting goes up dramatically.
If you’re in the Toronto area and like this idea, below is a link to information on a luncheon presentation by Mark Carney on December 16.
Tables of 10 are $700 - consider splitting a table with a colleague and inviting three key clients and one prospective client you’ve been talking to.
Current market volatility and a lackluster but improving economic climate have ironically created an excellent sales opportunity for those who know how to turn a huge negative into an enormous positive. Advisors who go back to their “A” book of business in the right way, are receiving an immediate jump in production, but more importantly, are solidifying key client relationships.
The anatomy of a successful telephone call to your best clients looks like this:
Let them know up front that they are your most valued clients.
Tell them that because of the historic volatility in financial markets you need to work with them differently–as good as your business relationship has been.
Explain that it is now necessary to learn even more about their personal and financial lives then you already know since the financial moves you both agree upon in the future will affect their families, dreams and taxes in a different way.
Tell them you want to put them on a new path that will focus on risk first-return later and will comfortably get them to where they want to be financially.
Mention that you want them to view you as a problem solver for any financial related issue. That means you must meet more often and discuss their complete range of their financial concerns.
Finally, mention that this is the way you will work with all your best clients and ask them if they want to take the next step and have a conversation about how they feel about their future, their dreams and ways to make that picture a reality.
If they agree, I would also ask them an open-end question, something like, “Tell me about a pressing concern that we have not already discussed? Then set the appointment.
What you have done in this call from the client’s point of view is to raise receptivity to future messages and recommendations. Expectations will shift from what you can do for them to what they must do for you. This usually results in the revelation of assets that were hidden from your view, a larger pay-day and an enhancement of your credibility in the eyes of people who are now more likely to provide you with a great referral.
“My clients have lots of money they don’t need to learn about it.”
This generalization from the financial industry is part of the reason why many multi-millionaire clients end up falling for the biggest financial scams. It is also why so many financial professionals are always in search of the ultra-high net worth client because those clients really are looking for more than the latest ‘fad’ investment, or this year’s tax write-off.
Admittedly, it is a bit of a conundrum on how to approach wealthy people about increasing their financial knowledge because suggesting to someone with obvious wealth that they might like to learn about money can be easily misinterpreted. However, let’s consider some of the issues that wealthy people face that most ‘poor folk’ don’t have to deal with:
They have worked hard to earn their money or have strong emotional connections because it was inherited, which doesn’t automatically mean they know how to keep it or how to invest it; rather it’s more likely that…
They depend on someone else entirely to manage their financial affairs and make decisions for them. This means that…
They are frequently targeted by unscrupulous, or even well-intentioned, but inexperienced financial professionals. This also means that…
They can easily become prey for many fraudulent or inappropriate investment schemes, especially if those investments come with the ever enticing promises of tax breaks and security.
They are easy to find because many of these people will often appear in business listings or media, or their profession or address in the ‘nice neighborhood’ of town is also a clue that there is a high probability of wealth so they will be targeted. This means there is a constant stream of seemingly good investments, financial schemes and advisors offering their wares.
They will make ad-hoc decisions because they have access to the opportunities and money to put towards them. Many of these opportunities will be unregulated. However, when the wealthy investor becomes comfortable with these creative investments…
They will miss the rewards of solid mainstream financial planning.
They are busy and will often lack a solid foundation based on personal values, goals and priorities in which to evaluate the investments and strategies for their own situation, which brings us full-circle in that…
The multi-millionaire client is dependent on professional advice and service not necessarily well-equipped to evaluate complicated financial options so…
They can actually become more fearful of loss or of making a wrong decision. And because there is a perception that the wealthy have money, and therefore must know a lot about the financial plans, strategies and investments they have…
They can find it even more intimidating, and can be very private, when discussing money matters…
They are certainly cautious to admit they need training to help them make money decisions.
…Which is how we find that the generalization that wealthy people don’t want, or don’t realize they need to, learn is actually creating a barrier between the financial professionals and the clients who need their services.
What all people want and need, regardless of the number of zeros on their bank statement is to look beyond the money to what’s truly important to them in their life. They want to feel in control of their finances without having to become the expert. Everyone needs to feel financially secure, and a large bank balance doesn’t guarantee security. It comes with more responsibility and more potential for a hard fall.
And, all this is why one of the biggest lessons on wealth I have learned in my almost 20 years as a financial professional was from the billionaires who hired me to teach them how to manage their household budget and pass this life skill on to their children.
This article can be reprinted freely online as long as the entire article and this resource box are included.
Money expert Tracy Piercy, CFP is the founder and CEO of MoneyMinding Inc., a wealth building system that reframes the way people think about financial success using a day-to-day educational experience, which benefits both the financial industry and consumers.
To learn more and receive the free Fast Action Tips & Solutions, visit www.MoneyMinding.com
Advisors and agents have tried for years to develop successful prospect generating strategies. Some strategies have worked and others have produced disappointing results. Today, it seems everything we’ve known is changing as it relates to marketing. And that’s good news for those who want to grow their business!
Amidst all of the uncertainty in the market and the financial industry, the marketing of financial services is having seemingly unusual results. Strategies that may have had limited success in the past are now generating significantly more interested prospects and producing more new clients. Really! But how and why is this happening?
The economy and the stock market are the number one story almost every day in the news. There is an elevated sense of urgency and a need for answers and advice and investors who may have thought they had their financial situation under control are realizing they need help. Today people are seeking out a trustworthy, intelligent, calming voice in all of this uncertainty that will provide an individual approach, analysis and solutions to their financial situation. There has perhaps never been a time when advisors and agents have been needed more. In the past, advisors and agents may have had to “sell” services to get someone to do business. Today people are looking for you!
Red Zone Marketing has been conducting an ongoing survey this year asking financial advisors who manage assets between $250 million and over $1 billion what they are saying to clients and what activities have been working to continue to grow their business - right now. Also, in the past 2 months, as I’ve traveled across the United States presenting to groups in more than 30 cities, I have been asking ‘what’s working right now.’ Here are the findings.
Are seminars working?
Public Seminars/Social Event: Just when many people had written off seminars as an expensive strategy that hasn’t been as successful as a few years ago - they are working again! And dramatically!
According to one of the seminar marketing firms, things are looking up!
“Like in past downturn years (i.e. after 911), we see activity levels rise in mailing orders and in seminar attendance,” said Jorge Villar, President of Response Mail Express, a seminar marketing firm in Tampa, FL. “Folks are looking for something better or different in these types of times. And, consumers are looking to learn about newer options, alternate solutions and trends.”
The truth is, the large public seminars are generating more qualified attendees than ever before. By using a proven seminar marketing system, advisors are starting to see response rates that have doubled in the past 3 months!
Referral based seminars: A seminar idea that has worked in the past and continues to work with low risk and low cost is niche based referral seminars. One strategy being used is called the “5-5-5-20″ seminar. You simply pick 5 or more of your clients that are in a niche (ie. they retired from the same company). Mail each client 5 invitations to an upcoming workshop on a seminar like How to Retire from LOCAL COMPANY in Volatile Market Conditions. Then make phone calls to the 5 clients personally asking them to pass those invitations along to others who are getting ready to retire from this company. Right now this strategy is generating more than 20 people in attendance at each seminar for advisors. It costs very little (about $2.00 for the whole mailing), attendees are very interested in the timely and targeted information, and you don’t even need to serve dinner! Advisors are conducting these seminars at community centers, libraries and in their offices.
Presentations for Existing Groups: Recently, there has also been an increased interest in having financial professionals speak at meetings of groups and organizations. One advisor we talked with is an active member of his large Chamber of Commerce. He has been asking for years to speak at one of the Chamber’s monthly luncheons. Again and again he was told ‘no.’ In early October he went to his Chamber and mentioned he had a presentation called, “What NOT to Do With Your Money Now.” They cancelled their previously scheduled speaker and put him on the agenda as the main speaker. Have times changed! Now, people really do want to hear you!
Do inexpensive grassroots-type Initiatives work?
An advisor in Illinois didn’t want to spend a lot of money finding new clients right now. So, he copied a strategy that some politicians were using. He and his staff go to the train station once a week during morning rush hour. They purchase coffee from the local provider and then pass it out for free to riders boarding the train. They also give out a flyer that says, “Nervous about your investments? Call xxx-xxx-xxxx.” It includes a picture of the advisor, a list of services, and their compliance information (of course!). They have scheduled appointments, have already identified millions of dollars in potential, and closed a $1,000,000 sale. You see, just about anything you do right now to reach out to investors is working - even this!
Are referrals Increasing or decreasing right now?
Even the simple strategy of asking current clients for referrals is working better than even a year ago. In the past, a typical question asking for referrals may have produced an answer like, ‘I really don’t know anyone.’ But today when you ask the question, ‘Do you know anyone nervous about their investments?’ - the answer you get is dramatically different. The answers are ‘yes’ and ‘everyone’ and the referrals are coming in!
How about advertising?
The same advertisement that an advisor has been running in his local newspaper to generate exposure only in good times is generating phone calls from interested prospects in these volatile times. We have heard from many advisors that simple ads with a strong call to action are producing interested prospects. Many of the ads simply ask the question, “Are you nervous about your investments?”
While many advisors are pulling in the reins on their marketing and spending, market volatility brings a perfect time to increase your exposure. Right now is the time to let people know that you are an advisor with personal solutions. Yes, it takes confidence to increase your activity in turbulent times, but that’s what clients are looking for… Confidence!
New York City:“I don’t know whether I’m feeling ‘Madoffed’ or this economic meltdown has taken a serious toll on my confidence,” said Charlie, “Whatever the reason I’m not performing at the level I should.”
Charlie is not alone.A quick glance at our research illustrates a trend line from 2007 to 2009 regarding affluent client acquisition that is not good.Findings tell the story (the percentages indicate the financial advisors who brought in 10 or more clients over the past 12 months):
10 or more:
2007
2008
2009
$250,000
26%
12%
3.2%
$500,000
12%
7.9%
1.3%
$1MM or greater
7%
3.9%
1.3%
From a statistical vantage point this signals advisor paralysis.You can consider this a leading indicator, for if advisors don’t stop playing victim and start going on the offense, there will be fewer advisors in the future.
Our “Winning in Tough Times” mantra; Your actions over the next 12 to 24 months will define your business for the next ten years cuts both ways.Invert that statement in the spirit of Charlie Munger and you will probably be taking a glimpse into the future.
The irony is that this environment, as challenging as it may be, is the perfect storm for Rainmaking.We have seen advisors bringing in assets at a pace and level they have never experienced.Affluent investors are beyond dissatisfied, many are disgusted.And not only with Wall Street, politicians, and regulators, if their advisor has been playing the role of victim, they’re also disgusted with their financial advisor.
Voila – the Rainmaking opportunity of a lifetime!You have no competition (98.7% of your colleagues are not Rainmakers), you have dissatisfaction at record levels (you must have dissatisfaction in order to sell intangibles), which have created opportunities nearly everywhere you turn on the affluent playing field (people are incessantly talking about our financial crisis).You couldn’t make up this scenario if you tried.
In this environment, spending all day talking to existing clients is not good for an advisor’s sanity, much less the future of his business.Whether you realize it or not, most of these conversations revolve around events that are outside of your control and you find yourself playing defense.Even with clients who understand that Wall Street’s meltdown is not your fault, a twinge of guilt will seep into your psyche.Too much of this will zap the energy and enthusiasm from even the best advisors.It’s become all too obvious that this is occurring more than anyone would like to admit.
Regaining your MOJO is a two-step process.First, it requires that you flip the switch in your mind and make a commitment to focus your energy only on things that you can control.This alone will allow you to be proactive rather than reactive.Whether it’s taking time to exercise, enjoying activities with your family or at work, being proactive is always a tonic to one’s attitude.
Second, as a financial advisor, it is important that you make the necessary adjustments to your daily routine.Again, the idea is to regain control by being proactive.I recognize this is easier said than done, but by simply blocking time for making outbound calls to clients (servicing — playing defense) you will limit the number of inbound calls that force you to react.Then by allotting another block of time for getting out of the office and executing one or two high-impact Rainmaking activities (playing offense), you will find yourself very naturally reaffirming your value.
As a Rainmaker told me recently, “My value was reaffirmed.I couldn’t believe it, my two new clients weren’t even getting their calls returned from their advisors.Their comment to me was ‘I don’t care if you beat this guy’s performance; I just want you to communicate with me and guide my family through this mess.’ It feels so good talking with clients of other advisors – when I’m Rainmaking I’m reminded of how well we serve our clients compared to the competition.”
Not only did this advisor land two new affluent clients, $1.5MM and $2.3MM respectively, he understands the psychological importance of prospecting in today’s environment.He’s using his offense to keep his mojo on track.
I am not advocating that you neglect your clients.Hardly!But you cannot do your clients much good playing the role of a victim.What I am strongly recommending is that every day you need to get out of your office, engage in conversations with non-clients, apply your affluent sales skills, and aggressively go after new affluent relationships.
After all, the prospecting stars are aligned and there is NO competition.
“The sure way to miss success is to miss the opportunity.” — Victor Chasles
Providing superior client service is perhaps the greatest missed opportunity among financial advisors. Just stop for a moment and consider these statements:
Your clients are the lifeblood of your business…
When you build your clients’ loyalty and confidence; you will uncover significant opportunities for new business and high quality referrals…
Providing your clients with superior service and advice means your work is more satisfying and drastically reduces your need to look for new clients…
The more time you spend in client-facing activities, the more income you will generate for your practice and yourself…
To some, these phrases state the obvious. After all, top advisors leverage these concepts everyday; they work hard to spend as much time with their clients as possible. Unfortunately, most advisors spend less than half of their time in client-facing activities. What’s more, the majority of financial advisors lack a client communication plan — a simple calendar for scheduling and tracking basic contacts.
Sure, there are many seemingly reasonable excuses for this lack of client attention. From poor organizational skills to a shortage of time to lack of financial resources, the list appears endless. Yet, this one area of practice management separates many high achievement advisors from the rest.
To jump start your success, you need to focus on “Delivering the Ultimate Client Experience.” This concept includes 6 specific activities for streamlining and elevating your approach to client service. We want your clients to view you as an indispensable resource — a trusted advisor worthy of overseeing more assets and receiving increased referrals. Here is how you begin:
1. Determine your client segments — Unless you work exclusively with a highly scrutinized clientele, segmenting or re-segmenting your clients is an important first step to “Delivering the Ultimate Client Experience.” Not all clients want, need or deserve the same level of attention. Develop your service model to cater to the needs of your ideal clients and those who have the potential to be ideal clients.
2. Build a communication calendar — At a minimum, your top clients expect and deserve 24 touches each year. These contacts are at the heart of “Delivering the Ultimate Client Experience.” Your touches should include letters, emails, calls, meetings and special events. Some of these contacts need to be highly customized while others may be less personal. And though you may think you make 24 contacts to each of your best clients during the course of a typical year, you shouldn’t leave it to chance. Build your foundation for superior client service by designing a communication calendar which outlines year-ahead or at least quarterly touches.
3. Monitor the amount of time you spend with current and future clients — Advisors who spend more than 50% of their time in client-facing activities have happier clients and higher incomes than those who spend less. In “Delivering the Ultimate Client Experience” you should color code your calendar to monitor the amount of time you are dedicating and spending with clients and prospects. Most electronic calendars, like Outlook, give you this option. If you use a paper-based calendar, use different color pens or highlighters. This simple technique will help you budget your time going forward and measure your results as you look back.
4. Turn your clients into advocates — Advocacy is a process for turning your clients into promoters of your business. Advocacy leads to new business and asset opportunities as well as highly qualified referrals and references. When advocacy is communicated properly and frequently, your clients see it as a mutually beneficial and highly professional attribute of your business. To “Deliver the Ultimate Client Experience”, you need to make sure advocacy is part of your client service offerings. As the year gets underway, build advocacy discussions into your review meetings and continue with this dialogue throughout the year.
5. Define (or refine) your Client Management Process (CMP) – Your CMP is the primary strategy you utilize to manage and monitor the financial side of your client relationships. It could be comprehensive financial planning, asset allocation, estate preservation, retirement income planning or any of a number of other specialties. “Delivering the Ultimate Client Experience” requires your process be well-defined and delivered consistently. Though you may choose to offer or outsource related services, your professionalism and expertise are best evidenced by the way you implement your Client Management Process.
6. Offer “something special” from time to time — Although consistency is at the heart of all the client care initiatives mentioned so far, it never hurts to add in a few surprises. You could host a “thank you” event and invite your top clients. You could send a handpicked gift along with a personal note to a client on the anniversary of your first working together. Saying thank you and memorializing special relationships is an important element of “Delivering the Ultimate Client Experience.” Consider how you could offer “something special” to each of your top relationships during the year.
“Delivering the Ultimate Client Experience” should not be viewed as a laborious chore; it is an opportunity which will lead to your future success. Challenge yourself to implement the 6 activities outlined above and your business will thrive. Remember, your clients are your greatest asset, treat them well and the results will be more than you could possibly expect.
I am constantly amazed at the disparity between advisors in a down market. Some are doom and gloom, Chicken Littles and others are laughing all the way to the bank. One of the great things about my job, is that I get to see inside the offices of dozens of multimillion dollar advisors every year. This gives us a great look at what is working in the bear market and what is not.
Here is what I know: many successful advisors see the current market as an unprecedented opportunity to capture more business. In fact, we will probably never see an opportunity like this again in our lifetime.
Here are 6 things successful advisors are doing to keep their clients calm and attract clients in the bear market. A quick look will also show you why some advisors are having so much trouble.
Full, comprehensive, CFP®-level, financial plans for all their clients.
This will date me, but 19 years ago, I was legal counsel to the IDS Mutual fund Board of Directors. In that role I would have access to the thought process and business strategies of the management team. Of course, IDS (now Ameriprise) was the first national broker dealer to promote comprehensive planning. The statistics they had were nothing short of amazing: investors with plans invested more money, were happier with their advisors, stayed clients longer, were less likely to sue, and by the way, the advisors made more money (a lot more money!). What’s not to like about these results?
Even with these results, they were having a hard time getting their advisors to do comprehensive plans.
It seems little has changed. Fast Forward 16 years, we had another broker dealer call us because they wanted Vestment Advisors to do gap analysises and business plans for their top 20 advisors over two years. (We call this a SWOOP® report for Strengths, Weaknesses, Opportunities, Obstacles and Plan). Once again, we were taking an intimate look inside the kimono of the top advisors in the country.
Here is what we discovered: only about 10% were actually doing comprehensive planning in some form that came close to CFP® guidelines. This was true, even though, 100% were holding themselves out as financial planners. Why is this a problem? These advisors are notmeeting client expectations; they are not gathering all the client’s assets; and they are not building client loyalty during down markets.
The advisors doing the comprehensive, soup to nuts, financial planning have clients who are weathering this storm. They may not like the storm, but they do like their advisor and they don’t want to can him or her, just because the market is down.
These investors know there is more to their financial future than just accumulation. That is just one part of the puzzle. They also need to think about distribution, protection, estate planning, and of course taxes.Their advisors are keeping things into proper perspective for them. Or as I tell our audiences: get your clients eyes off the market and on to the plan.
If you properly position your services in the mind of the client, they will know that the markets have an impact on their future, but the biggest issue is where are they now, in relation to their plan?For most clients, they should still be on track. Or if off track, your financial plan will let you know how you have to make adjustments.
Now for the doom and gloom advisors, here is what they are doing differently: they may be calling their deliverable a “plan” but it is an investment plan, not a financial plan. Typically it will include some asset allocation models and maybe some pretty boxes showing the client where they live on the efficient frontier. Typically this leads to product sales, individual equities, bonds or managed money.
Is this good for clients? Well, sure, but it is only a part of the picture. Presented this way, it encourages clients to be glued to the CNN news, watching the market reports. It is also misleading to investors, because investors believe they are getting a full, comprehensive plan, and they are getting something much less.
I predict these investors will be the ones suing their advisors.
On going communication with clients
The prospering advisors have done a great job in advance of the market demise to position themselves as the point of education for their clients. The advisor is first source the client turns to for information about the markets and economy. They do not look to the evening news to do their thinking for them.
One of our advisor clients near San Francisco, calls their A clients every 6 weeks, during good markets! During bad markets, it might be every 2 to 3 weeks. Most of these calls are informal, friendly “check ins” and have nothing to do with their finances. They do set the tone and create loyalty and camaraderie.They have been communicating with clients this way since they started their firm many years ago. When I asked him how his clients were fairing, he said they weren’t happy with the market, but they were not alarmed either. In fact, they were pretty calm, a remarkable response considering the meltdown.
Another firm we know, also near San Francisco,has been hosting quarterly educational meetings for clients and guests in their office conference room for many years. It is large enough to hold over 24 at one time. They usually will have an informal discussion on the economic forecast, or other financial topics and take questions. Part of what is so intriguing about their low-cost system, is they don’t bother to promote it much to clients. The clients already know which days these educational sessions are being. There is no RSVP required—clients just show up and bring friends. Before the market crash, they would get about 12 attending in a quarter. The last once they held—twice as many people were there. This firm also reported their clients were amazingly resilient.
I loved this approach—it was cheap, easy and efficient.Furthermore, it gave the clients a great sense of comfort—they knew right where to go to get their questions answered.
Surprisingly, few advisors are communicating with their clients via e-zines. Some are even down right homey, referring to their children’s wedding or a recent trip. The few of these that I have seen, all have something in common: they are written by the advisor himself, they are not ghost written by a product sponsor company. This gives the advisor to once again show their expertise and their differentiation while calming the investor’s fears.
Special meetings are also being used. These are less stress than you think. Hire out the local country club, or even the meeting room at the Library. For your content use some of the powerpoint presentations that vendors are creating. John Hancock has one that is very popular with the multimillion dollar advisors.
The WOW experience. We still believe in giving clients the WOW experience, something so powerful they can’t get it elsewhere. If you have been reading my articles on this subject, you know it is the little, inexpensive things that really make a difference in how the client perceives you.
One advisor from New York had heard me recommend little touches like hot cider (which smells great on a cold day) served in nice china tea cups.This is a big switch from most firms that are serving instant coffee in Styrofoam cups.She went out and got her office outfitted. Later she called me to say she picked up a $1.5 million dollar account from a widow. This advisor swears it was the hot apple cider that closed the deal!
Manage the client’s expectations.
Out of all of our recommendations, this is probably the most important. It never ceases to amaze me how many advisors don’t take the time to really know their client and uncover all their expectations. These would be expectations that go beyond their portfolio, but also on their relationship with their advisor.
Successful advisors have already made it a practice to use an Investment Policy Statement for every client.In creating these documents, they have already had the “life boat drill” with their clients. The advisors have previously run through the horrible imaginables, and gotten a feel for how the clients will react to a severe market downturn. Once they have discussed the options, the advisor created an IPS to document the client’s desires and spelled out how the client would want their portfolio handled during down turns.
Bottom line—there are no surprises for the investor.
The one thing I learned working for the directors of a big Mutual Fund Company—Directors and Investors HATE surprises. Our job is to manage their expectations in such a way, they are never surprised.
One great way to do this, I learned from my good friend Mark Bass. He says this to every new client. “I want you to know, over time, something we do will lose money. I don’t know what it is, but I do know it will happen.”
I would tell clients: “I can’t promise you returns, no one can, but I can promise you great service.”
Use Alternative Investments.
Successful advisors have been using alternative investments like oil and gas, REITs, notes and the guaranteed returns of VAs.
When it comes to investing, clients want to feel like winners. When the market is up, they do feel like they are winning. But when the market is down or sideways, they feel like losers. This is never a great mindset for your clients and is a sure way to be looking at an arbitration claim if it goes on long enough.
What I like about Variable Annuities is if the market is up, the client feels like they are winning, of course. But if the market is down or sideways, they also feel like they are winners—a great mindset for your clients.
Now, I know a lot of people, including Suze Orman, think VAs are straight from the devil.I happen to disagree.
For some clients, the additional expense of the VA guarantees are well worth the money. I think of them as guard rails over the Mississippi River in Minneapolis. Some people are willing to pay for them and some are not. Just make sure your clients know VAs, and other alternatives are available and let the client decide what they want to do.
The clients whose advisors put them in VAs are now quite happy with those guaranteed 6 and 7% returns. They really feel like they are geniuses!
The Advisor has a Great Attitude.
One of the key differences I have seen in being able to keep your clients in this market is the attitude of the advisor.A few weeks ago, I was doing a conference call with a group of top producing reps and the president of their broker/dealer.The difference in the advisor’s attitude was remarkable.
One advisor from Florida, who had been doing all the things I mention in this article, was actually cheerful and up beat. He reported that they had only had 3 phone calls from clients and none of the clients he had proactively called were wildly upset. They were picking up a lot of new clients and he was sleeping soundly at night.He credited their financial planning process with keeping clients calm during the down market.
On the other end of the spectrum, we had another advisor on the call who was all doom and gloom, a real Chicken Little. It was like listening to Eyeore on downers. This advisor was sure the sky was falling, we had never been in such terrible markets, it would go on forever and he had no idea how much worse it would get or what to say to his clients. Other advisors tried to cheer him up to no avail.
I almost felt sorry for Mr. Doom and Gloom. I realized he was getting all of his advice from CNBC and his clients were probably even more depressed than he was, because his mood was catching. No wonder his business was in trouble.
The best thing you can do for your clients is have a good attitude yourself about what is happening in the markets. Create a short story (3 to 5 minutes) on how the markets got to where they are and how long these down turns usually last. Finally, explain the stock market is “On Sale”. We all love to bargain hunt at Nordstrom’s—now they can do the same thing on Wall Street.
Your attitude should be empathetic, willing to listen to the client’s concerns, and (here is the important part) cautiously optimistic. The attitude you portray will greatly impact how your clients feel.Naturally your calm clients are the ones who will be referring you business.
Personally, I don’t look at my own portfolio, because I know about market cycles and I know the direction it will be going. I chose sound companies and I know they will rebound. I also don’t listen to network news. Twenty minutes of Shepard Smith on Fox was enough to have me looking for Valium.
In short, I know there has never been a better time to gather new clients, love ‘em up, and help them reach the financial future of their dreams. These new prospects are unhappy and much more likely to switch advisors now than in an up market. No one wants to make changes when things are working.
Use the market to your advantage! Solidify your current base of clients and get new ones in the process.
For as long as I’ve been a professional I’ve heard that a person’s attitude makes a difference.You’ve probably heard all the cute sayings about attitude – “Your Attitude Determines Your Altitude”, Attitude is Everything”, “The Only Thing You Can Control is Your Attitude”.Every sales manager talks about attitude.Every leader talks about attitude.Every entrepreneur hears about attitude.
Let’s face it.No one is against having a positive attitude.It’s kind of like mom and apple pie.There’s nothing to be against.But anyone who has worked with me knows that I don’t go with the crowd.I tend to be an independent thinker and as such, often see things differently than others.Over my professional career, I’ve been a student of human nature, and one of the areas I make note of is attitude.
Attitude has an interesting dynamic around it.I’ve observed, for instance, that people with a positive attitude tend to hang out together and people with a negative attitude also hang out together.Of course, each group tends to support the views of each other person within their group.The positive people see themselves as optimistic and forward thinking.The negative people see themselves as realists.Additionally, each group tends to view the other group somewhat unfavorably.The people in the positive group tend to look at the negative group as complainers, while the negative group tends to view the positive group as naïve, unrealistic, and/or overly “cheery”.I guess it’s a matter of your perspective.Each group feels they have an accurate view of reality – or more precisely, THE accurate view of reality.
One thing I’m sure of in life is that a person’s perspective determines their reality.And here is where these two groups begin to differ.I’ve noticed very different behaviors from people depending on their attitude.You see, attitude not only determines how a person sees things, but also affects their consequent actions as well.Our attitude determines our perspective, which in turn determines our reality.How does attitude and perspective affect our reality?Let me share a story as an example of how this happens.A number of years ago I had a friend who became focused on the potential problems surrounding the change of the millennium (Y2K).As he began to “research” the topic, the foretelling of upcoming disasters became his reality.In fact, the more he listened to radio talk shows the more he accepted their topics as “reality”.The more articles he read on the subject the more he accepted the writings as “reality”.The more websites he visited about Y2K, the more he accepted their perspectives as “reality”.By the time the end of December came around, he had stockpiled water and food, and was pleading with me to move up to the mountains to escape the impending terrorist attacks, falling planes, food shortages, crashing cars, and lack of water.January 1, 2000 came and went without incident. He never spoke to me again.
Obviously none of us are worried about Y2K any longer, but this story underlines how our attitude definitely affects how we conduct ourselves and our life.Our attitude creates our reality.But be clear, it’s OUR reality, not THE reality.I’ve observed that positive people tend to view challenges as speed bumps while negative people see them as obstacles standing in the way of success.Positive folks often face the same challenges as negative folks, except that negative people have their thoughts and energies focused on the problems and the consequences of the problems, while the positive people focus their thoughts and energies on succeeding despite the problems.I’ve observed that negative people often adopt a defeatist mindset, taking on the role of a victim, while positive people often adopt a solution-oriented mindset and set about creating their own opportunities.Consequently, I’ve come to understand that having a positive attitude indeed makes a significant difference not only in a person’s level of success, but also in their enjoyment of their life.It even determines whether they succeed at all.
But here’s the unusual thing… NO ONE VIEWS HIMSELF OR HERSELF AS A NEGATIVE PERSON!
People who are negative view themselves as “realistic”.(Wait a minute…isn’t “reality” a matter of perspective?)So the challenge is to determine whether you’re a “negative” person.
Here are some guidelines:
If you feel that your course in life and business is determined by others, then you need to adjust your attitude so you can shift your reality.
If you feel that the cards are often stacked against you, then you need to adjust your attitude so you can change your reality.
If you feel that your company, manager, agents, and/or clients don’t support you, then you need to adjust your attitude so you can change your reality.
We each have the ability and power to literally change our reality.
How does one turn a negative attitude into a positive one?The same way someone with a positive attitude maintains it.You need to eliminate the negative inputs, influences, and factors in your life and introduce positive ones.We’re bombarded with messages throughout the day and night.Some of them are good and some of them are just plain bad for you.We get “messages” from family, friends, co-workers, radio, newspaper, TV, music, the internet, billboards, books, magazines, and any number of other sources.If YOU don’t decide what goes into your head, then someone else will.You need to take control of what you feed your mind.Here are some tips on how to adjust and maintain your attitude:
Eliminate the Negatives
Stop reading the newspaper
Stop watching TV news
Stop seeking the negative on the internet
Stop hanging around negative people
Introduce Positives
Start hanging around positive people
Start reading motivational or inspirational books – biographies, personal growth, success principles, etc.
Start listening to CD’s – motivational, personal growth, uplifting music, etc.
Does attitude really count? Can attitude really change your reality?I guess it depends on your perspective…
