Recently we attended a adviser forum where bank based advisers lamented that while they get a high level of referrals from in house mortgage lenders, the conversion rate was incredibly low, in fact less than 20%.
On further questioning, we found that the way the referral was positioned was flawed as was the timing of the referral. The referral was positioned with the client at the later stages just before loan settlement or the early stages post loan settlement. In referring the pitch was along the lines of: "do you have insurance?"...."our guy can probably do it cheaper".
With no room to add the value of strategy, structure, complete solution plus the positioning of the service as purely transactional the respect shown by both the referrer and the client were set low.
In contrast a study of Bancassurance overseas and in particular Canada, by RGA, reported that referral rates from bank lenders to the insurance network was of the order of 70% and a conversion rate of 90%.
How did they achieve such great results?
It's all about timing and positioning.
The referral was positioned at a very critical stage, in fact when the client was the most relieved, happy, satisfied : in the 7 seconds immediately after the client had just been told that the loan had been approved.
Secondly the referral was positioned quite distinctly. So in that 7 seconds after the client had heard the loan had been approved : " How are you feeling", "It's terrific isn't it, I'm really happy for you" " I want to make sure you always feel this way about your loan and about what you loan is providing you" " I want to make sure you avoid suffering any financial stress" " I'm referring you to our protection specialist, to make sure you can always afford to live in your home/run your business from this property".
Timing and positive language. 70% referral rates, 90% conversion.
Monday 20 May 2013
Friday 10 May 2013
Grief Management For Financial Advisers
Research on client and staff connectedness to a service provider such as a financial planner / insurance adviser shows that the key differentiators are not technical expertise, education and training. Rather these components of a service offer, client value proposition or collaborative workplace are starting points and must haves : if you like they are hygiene factors and minimum expectations.
The true differentiators are the ability to connect and bond with clients, to lead staff into a zone where on a daily basis they feel valued, appreciated and that they are are involved in purposeful meaningful work and as such each day they make progress even if in small increments towards work related and personal goals.
It is these types of workplaces that are characterised by greater collaboration and teamwork, an emotional investment in the workplace, and an understanding of what should be delivered to clients and the delivery of services to clientele that is often described by clients as excellent service because "they know me".
So how then does such a workplace respond to the experience of grief by a staff member, a client?
As risk advisers / financial planners that are intimately involved in a clients financial affairs, advisers are often the very first people called upon. How they react and manage these moments of truth are the critical test of how well advisers have gotten to know their clients. It is the true test of bonding.
Mary Ann Hazen is a professor of management in the College of Business and wrote in Organisational Dynamics Volume 38, Issue 4, October–December 2009, Pages 290–296 about theories about the grief process, and identified what to expect from bereaved clients and staff : fatigue, exhaustion, and difficulty concentrating; expressions of anger and guilt; and withdrawal from relationships.
What she identifies is that social support is necessary for healing, and meaningful work can often help the grieving person. She points out that teams that can respond fittingly to clients and staff with consideration for their needs : actually assist the healing process.
This is such an important part of the process : the service delivery for a client during the claims process and the support for each other in a team environment are crucial as such workplaces as financial services for a client and any workplace for a staff member are often an important part of many people's social network.
Accordingly as Mary Ann Hazen points out they are a major source of support.
For a client the support through the process required in financial services needs to be delivered not only with a guide on what the process actually entails but an awareness and acknowledgement in clear and unambiguous terms of what a client is going through. Guides to what your service entails need to identify the resources you have available for grief counselling and support irrespective of whether your client avails themselves of such services through you or not.
For staff experiencing grief Hazen identifies that work itself can be healing with the work a way to find meaning in a loss and maintain a connection with the person who has died.
What is key here is : the acceptance that people are in a grief state, the time to reflect and the tools on how to reflect on what each person needs as an individual as part of their own and often very private process, positive action by leaders to acknowledge and show the affected individuals that they are valued and feelings are validated and an education process that has at its disposal resources to guide people through the right process for them as an individual.
Studies of journal writing, verbal acknowledgement of feelings and sharing of feelings as a group shows the positive physiological responses to such techniques that over time result in a better physical manifestation and recovery from grief. But ultimately what counters the emotional loss is the core human response of acting with genuine care that can only be delivered by positive relationships based on trust, compassion and a bond borne from really knowing someone.
It's the connection that matters.
The true differentiators are the ability to connect and bond with clients, to lead staff into a zone where on a daily basis they feel valued, appreciated and that they are are involved in purposeful meaningful work and as such each day they make progress even if in small increments towards work related and personal goals.
It is these types of workplaces that are characterised by greater collaboration and teamwork, an emotional investment in the workplace, and an understanding of what should be delivered to clients and the delivery of services to clientele that is often described by clients as excellent service because "they know me".
So how then does such a workplace respond to the experience of grief by a staff member, a client?
As risk advisers / financial planners that are intimately involved in a clients financial affairs, advisers are often the very first people called upon. How they react and manage these moments of truth are the critical test of how well advisers have gotten to know their clients. It is the true test of bonding.
Mary Ann Hazen is a professor of management in the College of Business and wrote in Organisational Dynamics Volume 38, Issue 4, October–December 2009, Pages 290–296 about theories about the grief process, and identified what to expect from bereaved clients and staff : fatigue, exhaustion, and difficulty concentrating; expressions of anger and guilt; and withdrawal from relationships.
What she identifies is that social support is necessary for healing, and meaningful work can often help the grieving person. She points out that teams that can respond fittingly to clients and staff with consideration for their needs : actually assist the healing process.
This is such an important part of the process : the service delivery for a client during the claims process and the support for each other in a team environment are crucial as such workplaces as financial services for a client and any workplace for a staff member are often an important part of many people's social network.
Accordingly as Mary Ann Hazen points out they are a major source of support.
For a client the support through the process required in financial services needs to be delivered not only with a guide on what the process actually entails but an awareness and acknowledgement in clear and unambiguous terms of what a client is going through. Guides to what your service entails need to identify the resources you have available for grief counselling and support irrespective of whether your client avails themselves of such services through you or not.
For staff experiencing grief Hazen identifies that work itself can be healing with the work a way to find meaning in a loss and maintain a connection with the person who has died.
What is key here is : the acceptance that people are in a grief state, the time to reflect and the tools on how to reflect on what each person needs as an individual as part of their own and often very private process, positive action by leaders to acknowledge and show the affected individuals that they are valued and feelings are validated and an education process that has at its disposal resources to guide people through the right process for them as an individual.
Studies of journal writing, verbal acknowledgement of feelings and sharing of feelings as a group shows the positive physiological responses to such techniques that over time result in a better physical manifestation and recovery from grief. But ultimately what counters the emotional loss is the core human response of acting with genuine care that can only be delivered by positive relationships based on trust, compassion and a bond borne from really knowing someone.
It's the connection that matters.
Sunday 5 May 2013
Predicting Client Behaviour : Who's going to buy what you're selling?
Carver and White (1994) put forth that there are two key dimensions of personality:
- anxiety
- impulsivity
These two qualities represent differences in sensitivities of two neurological systems in their responses to environmental cues.
One system regulates aversive motivation.
One system regulates appetitive motivation.
Aversive motivation is regulated by the behavioural inhibition system (BIS) that controls the experience of anxiety and is sensitive to signals of punishment / non reward and as such inhibits behaviour that may lead to adverse consequences.
Appetitive motivation is regulated by the behavioural activation system (BAS) that is sensitive to reward and non punishment and leads to goal directed behaviour with observable positive feelings of hope for example.
People with high BAS sensitivity respond to cues of reward compared to people with low BAS.
High BIS individuals are responsive to punishment cues.
Gray’s (1975) original reinforcement sensitivity theory attributes behavior to the relative strength of these two motivational systems.
So assuming that these systems do indeed operate to regulate motivation to either take risks towards achievement of goals or the reluctance to take chances that may risk jeopardising the status quo : what can you do about it when engaging your clients to utilise your services?
The keys are tapping into and individuals neurological systems and ensuring that you match your pitch in the way that will most resonate with them.
This means for the individual wanting to escape risk : you need to to highlight the risks inaction actually delivers and the consequences (punishment) that may await should they not implement the solutions you recommend.
It's a discussion about statistics, case studies and stories of the what if and adverse consequences of inaction.
For those clients with high BAS, who are looking forward, can visualise a better state of being and ready to take action for the pursuit of a reward : it's all about positive achievement and what people have achieved by implementing your solutions. All they need to do to reach a better state is move forward with you.
The trick of course is identifying which clients have high BAS or high BIS sensitivities.
- anxiety
- impulsivity
These two qualities represent differences in sensitivities of two neurological systems in their responses to environmental cues.
One system regulates aversive motivation.
One system regulates appetitive motivation.
Aversive motivation is regulated by the behavioural inhibition system (BIS) that controls the experience of anxiety and is sensitive to signals of punishment / non reward and as such inhibits behaviour that may lead to adverse consequences.
Appetitive motivation is regulated by the behavioural activation system (BAS) that is sensitive to reward and non punishment and leads to goal directed behaviour with observable positive feelings of hope for example.
People with high BAS sensitivity respond to cues of reward compared to people with low BAS.
High BIS individuals are responsive to punishment cues.
Gray’s (1975) original reinforcement sensitivity theory attributes behavior to the relative strength of these two motivational systems.
So assuming that these systems do indeed operate to regulate motivation to either take risks towards achievement of goals or the reluctance to take chances that may risk jeopardising the status quo : what can you do about it when engaging your clients to utilise your services?
The keys are tapping into and individuals neurological systems and ensuring that you match your pitch in the way that will most resonate with them.
This means for the individual wanting to escape risk : you need to to highlight the risks inaction actually delivers and the consequences (punishment) that may await should they not implement the solutions you recommend.
It's a discussion about statistics, case studies and stories of the what if and adverse consequences of inaction.
For those clients with high BAS, who are looking forward, can visualise a better state of being and ready to take action for the pursuit of a reward : it's all about positive achievement and what people have achieved by implementing your solutions. All they need to do to reach a better state is move forward with you.
The trick of course is identifying which clients have high BAS or high BIS sensitivities.
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