Alicia Keys song about New York includes the lyrics
"Concrete jungle where dreams are made of
There's nothing you can't do
Now you're in New York!
These streets will make you feel brand new, big lights will inspire you".
The state of mind she sings about : belief, dreams, battling through the sameness to differentiate and make it big : is to me very close to what's going on in the quest to capture the social media space and engage with clients.
There is a sameness that is appearing in the manner in which people are implementing. We are all looking at the same big names in advice who have tapped into social media to engage with clients. Are we inspired? Is anyone really doing it well? If you build it ...will they come?
Broadly the answer sadly is no. Because there is something missing. If you do not have a state of mind that is social at its core then a social strategy is not one for you. If your client base does not suit a social strategy then maybe there are other ways to successful engage clients and monetize the engagement.
For me social, is the embodiment of that very word. It is the across the dinner table dialogue with a client where you get to share hopes and dreams (note there is reciprocation implied here). It is heavily reliant on you knowing your client base, your pitch or unique proposition to an ideal client, having the capabilities to deliver on that proposition and the right service model to truly enact that promise.
No amount of communication with a client be it via a social platform or not can be the solution to engagement if you don't have these components to start with.
Following that whether or not a social platform is the right way to communicate with clients depends on whether this is appropriate for the demographic and whether it suits your business model.
Don't get me wrong : I love social media and think it is a necessary mechanism to communicate with clients to truly tap into the psychology of what is core and innate in all of us : that is we are social beings. We are humans and we have always forged ahead by communication, sharing and bonding. We now have platforms which we can do this on in large scale.
As a student of psychology, the manner in which we as humans, as clients look bond with eachother, the way we look for reassurance and social proof before we act lends itself to a process of engaging with clients that taps into these hard wired drives. This client psychology and management of it embodies everything you do as advisers be it insurance advice, business insurance, Intergenerational advice or aged care. Building processes around the psychological processes that a client experiences in dealing with you and the satisfaction with life and well being outcomes they achieve as a result is critical in any communication with a client : including social media.
Wednesday 20 August 2014
Getting referrals from accountants
What's the recipe for success in the quest to get consistent, quality referrals from an accountant?
This challenge arises for even advice businesses that own or are owned by accountancy businesses. Even in these environments the manner in which the client experience is delivered for each businesses means that to align is like forcing two magnets of similar polarity together : they push apart often with repulsive force.
The classic solution : has often been the lunch time education/information session, where we talk to the accountants about TPD and expect them to spread this amazing news to clients. Of course I make light of the value and depth that many education sessions hold, but the expectation we have of the impact and the results of these sessions are often unrealistic. That is not to say they don't work, they can do over time, but often despite their regularity and range of topics the conversations we expect or hope the accountants to have just don't follow.
Also problematic is if the accountant does commence a conversation with a client and the conversation goes for more than 6 minutes ....do they charge them? And what if it goes for 20 minutes? What if they are asked a question they can't answer?
After years of observing, experimenting and some just plain dumb luck these are the techniques we've seen work and why:
1) Lunch works : it's about the one time in the day the 6 minute clock is not ticking and the accountants down tools. Rather than an education session, how about just having lunch with them, in the lunch room over a sandwich and not talking about anything to do with financial planning. It's a lot easier to get a referral from someone who likes you.
2) Training can help and is a must : but needs to be tailored so that life risks are not the forefront but rather risk to the accountancy base is. Highlighting that business expenses cover can protect the accountants fees (they are a valid business expense) is one way of the accountant feeling the need for a valid discussion with a client.
3) Getting exemption from the 6 minutes hence the conversation is "authorised" and the client and accountant are not held to the 6 minute charging regime.
4) Creating a process. A questionnaire that acts as a rating scale ie: scores points for having certain structures and strategies in place: provides a great rationale for a referral to an adviser. As the accountant works on the clients tax issues, the client is given the opportunity to fill in a short one page tick a box questionnaire. Each box attributes a score. The lower the score the more urgent the need to see an adviser. Areas covered include SMSF, Estate Planning, Insurances, Buy Sells. The only thing the accountant has to do is add up the score and say based on the score there are some issues that needs clarification : hence the referral to the planner.
5) Taking a portfolio approach with the client base. Looking at the best accountancy clients it is determined whether or not financial planning revenue is being received (works best with in house financial planning and accountancy services). If not it is an automatic referral where the accountant calls the client and explains that as one of their best clients they have not yet taken advantage (as all their other best clients do) of all the services and it's a concern as when assessing their clients financial health (as per the questionnaire in 4) they have found gaps in their clients affairs.
This challenge arises for even advice businesses that own or are owned by accountancy businesses. Even in these environments the manner in which the client experience is delivered for each businesses means that to align is like forcing two magnets of similar polarity together : they push apart often with repulsive force.
The classic solution : has often been the lunch time education/information session, where we talk to the accountants about TPD and expect them to spread this amazing news to clients. Of course I make light of the value and depth that many education sessions hold, but the expectation we have of the impact and the results of these sessions are often unrealistic. That is not to say they don't work, they can do over time, but often despite their regularity and range of topics the conversations we expect or hope the accountants to have just don't follow.
Also problematic is if the accountant does commence a conversation with a client and the conversation goes for more than 6 minutes ....do they charge them? And what if it goes for 20 minutes? What if they are asked a question they can't answer?
After years of observing, experimenting and some just plain dumb luck these are the techniques we've seen work and why:
1) Lunch works : it's about the one time in the day the 6 minute clock is not ticking and the accountants down tools. Rather than an education session, how about just having lunch with them, in the lunch room over a sandwich and not talking about anything to do with financial planning. It's a lot easier to get a referral from someone who likes you.
2) Training can help and is a must : but needs to be tailored so that life risks are not the forefront but rather risk to the accountancy base is. Highlighting that business expenses cover can protect the accountants fees (they are a valid business expense) is one way of the accountant feeling the need for a valid discussion with a client.
3) Getting exemption from the 6 minutes hence the conversation is "authorised" and the client and accountant are not held to the 6 minute charging regime.
4) Creating a process. A questionnaire that acts as a rating scale ie: scores points for having certain structures and strategies in place: provides a great rationale for a referral to an adviser. As the accountant works on the clients tax issues, the client is given the opportunity to fill in a short one page tick a box questionnaire. Each box attributes a score. The lower the score the more urgent the need to see an adviser. Areas covered include SMSF, Estate Planning, Insurances, Buy Sells. The only thing the accountant has to do is add up the score and say based on the score there are some issues that needs clarification : hence the referral to the planner.
5) Taking a portfolio approach with the client base. Looking at the best accountancy clients it is determined whether or not financial planning revenue is being received (works best with in house financial planning and accountancy services). If not it is an automatic referral where the accountant calls the client and explains that as one of their best clients they have not yet taken advantage (as all their other best clients do) of all the services and it's a concern as when assessing their clients financial health (as per the questionnaire in 4) they have found gaps in their clients affairs.
Why client surveys work
I'm constantly surprised by the low numbers of advisers who surveys their clients. Now before you groan, roll your eyes and move on, let me point a few things out to you:
- the average advice business enjoys a margin (I use the word "enjoys" with a degree of sarcasm) of around 20%
- leading advice businesses experience margins of 45%
- average advice businesses attain net promoter scores in the 50s
- leading advice businesses see their scores in the mid 90s
- average advice businesses obtain a level of referrals from the family unit / social circle that leads to them having intergenerational relationships with less than 10% of their clients
- leading advice businesses generate 68% plus of new clients each year from their existing clients family and social circles
Why the stark difference in results? Process and the client experience that is delivered consistently, repeatedly and sustainably is a massive contributor to the success of these leading advice businesses.
The way in which these businesses can design the client experience that they deliver : and the key word is design : these businesses are not successful by default : is that they simply know more about their clients and their clients walk away from every interaction with a feeling that the advice business "just knows me".
This level of understanding and the display of that understanding of what makes a client "tick" is no accident. It is delivered by meticulous and regular questioning of clients and engagement beyond a standard fact find.
These businesses use processes to find out more about their clients; mind maps, lifestyle questionnaires, psychological profiling. And to refine their process they survey clients. Not just satisfaction surveys : they look at motivators, values, propensity to refer and how well the client has understood and can articulate the advice businesses proposition.
When DoubleTree by Hilton surveyed their clients (using a # campaign on Twitter) to find out the "little things" that made a difference to the hotel stays of their clients : they enacted the feedback and delivered not only tailored experiences but demonstrated they really were listening.
When UBS private clients use the insights they have on their clientele to shape every aspect of the client experience they demonstrate that they truly do understand their clients and in doing so span advice across generations.
When Amazon recommends books for you to read based on your purchase and search history, they (or the algorithm) are listening (and watching!).
It's smart business. It's client centric business.
The first step is about asking yourself and your staff : "what do our clients really want?".
Then ask your clients.
- the average advice business enjoys a margin (I use the word "enjoys" with a degree of sarcasm) of around 20%
- leading advice businesses experience margins of 45%
- average advice businesses attain net promoter scores in the 50s
- leading advice businesses see their scores in the mid 90s
- average advice businesses obtain a level of referrals from the family unit / social circle that leads to them having intergenerational relationships with less than 10% of their clients
- leading advice businesses generate 68% plus of new clients each year from their existing clients family and social circles
Why the stark difference in results? Process and the client experience that is delivered consistently, repeatedly and sustainably is a massive contributor to the success of these leading advice businesses.
The way in which these businesses can design the client experience that they deliver : and the key word is design : these businesses are not successful by default : is that they simply know more about their clients and their clients walk away from every interaction with a feeling that the advice business "just knows me".
This level of understanding and the display of that understanding of what makes a client "tick" is no accident. It is delivered by meticulous and regular questioning of clients and engagement beyond a standard fact find.
These businesses use processes to find out more about their clients; mind maps, lifestyle questionnaires, psychological profiling. And to refine their process they survey clients. Not just satisfaction surveys : they look at motivators, values, propensity to refer and how well the client has understood and can articulate the advice businesses proposition.
When DoubleTree by Hilton surveyed their clients (using a # campaign on Twitter) to find out the "little things" that made a difference to the hotel stays of their clients : they enacted the feedback and delivered not only tailored experiences but demonstrated they really were listening.
When UBS private clients use the insights they have on their clientele to shape every aspect of the client experience they demonstrate that they truly do understand their clients and in doing so span advice across generations.
When Amazon recommends books for you to read based on your purchase and search history, they (or the algorithm) are listening (and watching!).
It's smart business. It's client centric business.
The first step is about asking yourself and your staff : "what do our clients really want?".
Then ask your clients.
Developing a family advice offer
I always have a slight chuckle whenever I see IG (intergenerational advice) on an education schedule for an adviser planning day. The reason is because of the data used to back up the "why", the method that is put forth as the solution and the marketing call to action that is described as the resource to use.
The reality is that providing family advice requires the development of capabilities, new systems and processes, different CVPs and all up is a 6 month plus journey.
The data that is usually pointed to contains a call to action to address the dire situation of grandparents being the sole carer of children aged below 15 and this creates a threat to retirement incomes and so is a necessary conversation to have with your boomer clients.
The reality here is that those numbers are 17,000 families. There are give or take 15,000 advisers in Australia : so you all have one each to target. That's some niche play.
The method that is put forth as the holy grail is the family tree and by utilising one you will capture the essence of a families total situation and position as the trusted family adviser.
The reality is that family trees do not work if positioned without context supported by capabilities that invite the positioning of a family tree into the conversation.
Finally no marketing flyer will encourage families to share with their loved ones your very kind "gift" of financial advice unless there is appropriate positioning and a defined, meaning and relevant "why".
IG advice works but it works by design. Businesses that have designed the process position as the central hub of a families financial world, but also as the intermediary between the inner workings of the "tribe" and it's external affairs.
The reality is that providing family advice requires the development of capabilities, new systems and processes, different CVPs and all up is a 6 month plus journey.
The data that is usually pointed to contains a call to action to address the dire situation of grandparents being the sole carer of children aged below 15 and this creates a threat to retirement incomes and so is a necessary conversation to have with your boomer clients.
The reality here is that those numbers are 17,000 families. There are give or take 15,000 advisers in Australia : so you all have one each to target. That's some niche play.
The method that is put forth as the holy grail is the family tree and by utilising one you will capture the essence of a families total situation and position as the trusted family adviser.
The reality is that family trees do not work if positioned without context supported by capabilities that invite the positioning of a family tree into the conversation.
Finally no marketing flyer will encourage families to share with their loved ones your very kind "gift" of financial advice unless there is appropriate positioning and a defined, meaning and relevant "why".
IG advice works but it works by design. Businesses that have designed the process position as the central hub of a families financial world, but also as the intermediary between the inner workings of the "tribe" and it's external affairs.
Making Business Expenses Easy
How do you position business expenses?
What is key here is to dispel the myths around business expenses cover and to provide advisers with the motivation to start the conversations with confidence. One presentation we like opens with a real life case where an adviser had thought they’d provided holistic advice to their client only to find they were significantly exposed to financial risks.
At this point in the presentation advisers are asked to think of, write down and make a list of the key clients they needed to have the business expenses conversation with. Following this advisers are walked through a project plan to think through how they could start simply positioning business expenses discussions not only with clients but with their referral sources.
Business Expenses cover could almost be called the ‘forgotten cover’ with less than 4% of customers with income protection cover having specific business expenses cover in place. Research shows that less than 8% of business owners have this cover in place and whilst this presents as a great opportunity, we find that less than 2/3rds of advisers promote business expenses cover at all. In fact this number may be even lower with a misperception that business expenses cover is too complex either at underwriting or at claims time.
Take an approach of keeping it simple and looking to at least cover the more significant costs – which also should be simple enough to uncover (as well as justify at claim time).
If you think about covering the main items of rent, lease costs, repayments for equipment etc when it comes to claim, these are very easy to show, without the need for complex recalculations each month - they make the financial part of a BEX claim much simpler.
Key questions to clients:
•What are your lease payments?
•What are your loan repayments – and what are they for?
•What is the rent on your premises?
•What wages do you have for administrative staff?
Also appreciate the indemnity nature of business expenses cover – which is about covering the shortfall up to the insured benefit. There shouldn’t be an expectation that the full benefit will always be paid on claim. Much like contents insurance at home, you wouldn’t expect to be paid $60,000 for your contents, if only $3,000 worth was lost in a burglary.
What is key here is to dispel the myths around business expenses cover and to provide advisers with the motivation to start the conversations with confidence. One presentation we like opens with a real life case where an adviser had thought they’d provided holistic advice to their client only to find they were significantly exposed to financial risks.
At this point in the presentation advisers are asked to think of, write down and make a list of the key clients they needed to have the business expenses conversation with. Following this advisers are walked through a project plan to think through how they could start simply positioning business expenses discussions not only with clients but with their referral sources.
Business Expenses cover could almost be called the ‘forgotten cover’ with less than 4% of customers with income protection cover having specific business expenses cover in place. Research shows that less than 8% of business owners have this cover in place and whilst this presents as a great opportunity, we find that less than 2/3rds of advisers promote business expenses cover at all. In fact this number may be even lower with a misperception that business expenses cover is too complex either at underwriting or at claims time.
Take an approach of keeping it simple and looking to at least cover the more significant costs – which also should be simple enough to uncover (as well as justify at claim time).
If you think about covering the main items of rent, lease costs, repayments for equipment etc when it comes to claim, these are very easy to show, without the need for complex recalculations each month - they make the financial part of a BEX claim much simpler.
Key questions to clients:
•What are your lease payments?
•What are your loan repayments – and what are they for?
•What is the rent on your premises?
•What wages do you have for administrative staff?
Also appreciate the indemnity nature of business expenses cover – which is about covering the shortfall up to the insured benefit. There shouldn’t be an expectation that the full benefit will always be paid on claim. Much like contents insurance at home, you wouldn’t expect to be paid $60,000 for your contents, if only $3,000 worth was lost in a burglary.
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