3 things that need to be in your 2014 business plan

So if you are like us at PCE, you are already well into planning for 2014.

And part of that planning process invariably asks what is it that we do best and secondly what do we need to improve?

This is however where most business plans and therefore most businesses fail. What occurs thereafter are brainstorming sessions, that generate a plethora of ideas, of initiatives to deliver to go from "good to great" by innovating, coming up with the competitive edge that will blitz the competition.

Often the ability to deliver such growth is overstated and what ends up happening is that the business forgets to deliver the answer to the very first question : what is it that we do best?

Focussing on weaknesses highlights and delivers just that : weaknesses or at best improved weaknesses.

Paul Leinward and Cesare Mainardi (Harvard Business Review June 2010, pp 86-92) posed the question as to whether you business had the courage and discipline to focus intensely on what it does best.

Rather than chase business in markets where the company does not have capabilities to sustain success, "coherent" companies align what they do best with the right market positioning.

In other words they position their offer to their ideal clients in a way that resonates.

Every decision then is focussed on being able to answer 3 questions (the 3 that need to be in your business plan).

According to Leinward and Mainardi these are :

How are we going to face the market? In oner words : what is our value proposition? Understanding the value you create for the customer and being able to articulate it in a replicable/repeatable phrase is key here.

What capabilities do we need? In other word : To deliver on our value proposition what 3-6 capabilities to we need to display / deliver?

What are we going to sell and to whom? In other words: the product and services that make up the product mix are the ones that are key to your value proposition and highlight the capabilities that your business has, are delivered to the right customers in the right communication mix.

So the key is:

- figure our what you are really good at, develop the capabilities you have to deliver that so that they are best of breed, align this with the market place opportunities and be rewarded with sustained superior returns.

Ask these 3 questions in your business planning process : which by the way should include all team members (it's a great way to assess if you actually need to reassess whether the capabilities you have in your team are actually the right ones for you!!)

How to get more "likes" on your corporate Facebook page

So you've set up your Facebook page for your business, and you have a good engaging website, maybe even some videos : client testimonials and "why" videos......you've built it....."they" should come......where are they???

You have 137 Facebook page "likes" and your articles / posts attract a handful of "likes" and certainly no "shares".

What's gone wrong.

You've fallen victim to McDonaldisation.

As pointed out by Macionnis and Plummer, 2012, much of social life is being or has been defined by the principles that guide the operation of fast food chains. Close intimate social groups have given way to fast, efficient but distant ones.

We live a great part of our lives via networks. And these newer networks have if you let it forgotten the oldest ideas of sociology that we move through life with a sense of belonging : our social groups are founded on associations with those that we identify with and interact with.

So if your posts on Facebook are one way....your product, your opinions, your sales pitch you are ignoring the basics of group dynamics ...that the group encompasses people with shared experiences, loyalties and interests.

Social groups think of themselves as special and as a collective "we".

What you are trying to do on Facebook is create a primary group. Sociologist Charles Horton Cooley, identified primary groups as small social groups whose members share personal and enduring relationships with sincere concern for each others welfare.

Members : belong together, have strong links, view each other as unique and irreplaceable.

By contrast a secondary group is large, impersonal, and has weaker emotional ties.

Your content to be engaged, of value, shared, liked needs to tap into the values of a primary social group.

If your intent is to attract a certain ideal client, then you need to understand what primary social groups and interactions your ideal client has. What are those values and experiences?

Only then can you have meaningful engagement with them.

Why else would a garden shears company Fiskars have a group of scrapbookers as a major contributor to R&D and a resultant 300% increase in sales. Because Fiskars listened and understood the social connections that their ideal clients had and tapped into that primary social group with value.

Your action plan......have you really though about your Facebook content, who it is aimed at and is it of value to them. Or rather have you just applied the same direct marketing techniques that didn't work by direct mail ....so why on earth would they work in a virtual community?

Business Plan Template : A Guide to Pro-Active Client Engagement

So the end of the year is nigh and if you are really serious about making 2013 a success, then it is highly likely that you have already thought about your key client engagement plans for next year and quite possibly planned out the first three months of 2013.

No?

What are you waiting for??!!!

Imagine ending 2012 knowing exactly what the next twelve months looked like from a client engagement point of view in regard to a series of set plays.

Activity and responsiveness are of course key, but having a structured plan to support your day to day, business as usual activity can provide a clarity and preparation that your competitors just have not got around to doing.

The attached template is not an answer to your client engagement dreams but what it is, is a simple yet powerful tool to illustrate just how well planned your year is, or conversely highlights that your client engagement planning is not up to scratch.

So in 2013 give yourself, your team and your clients the gift of leadership, pro-activity and positive client experiences that will should you be disciplined enough to follow through deliver success in 2013.

You can access the template from the attached link.

Creating creative sales strategies

Fun Fridays! The day when your prep/grade one children get to run a muck dressing up and acting and having free run of the facilties and using every aspect of energy enthusiasm and spirit possible.

The art of learning in this environment delivers an experience that allows self discovery and importantly the ability to look at things from another persons point of view. Play acting or taking a part requiring one to step out of themselves comes easily to these children but eludes us adults restricted by the conventions of our workplace compared to the uninhibited playground of Fun Friday.

So the solution : create the fun Friday environment in your workplace.

First step in this is to recognise the strengths of the individual's in your team and then importantly recognise and document the valid learning experience required by each team member.

The exercises you need to then employ draw on De Bono and Gardener's multiple intelligences. This is where you need help and a professional to execute the programme.

The first step though starts with you and your willingness to take yourself and your team on a journey of discovery and have fun doing so. What you will find is new skills and a new way of looking at things with your clients your staff you and your business the beneficiaries as you further differentiate your client engagement.

Why would a client pay a premium for something that isn't there? Reassuring your clients when buying your service

Marketing guides such as the work of Solomon et al (2011) remind us that services, such as the provision of financial planning services, have the characteristics of intangibility, inseparability and variability.

These characteristics create problems for the financial planning business wanting to engage clients and position as the solution of choice as well as charge a fee commensurate with the degree of work involved and the expertise of the service provider.

Why would a client pay a premium for something that isn't there?

How can a client assess that you have done a good job, when the outcome of your work (a plan for retirement in 20 years, a full insurance plan that is effected on the future passing of the sole breadwinner) is either a) many years into an ever increasingly uncertain future or b) something they really don't want to ever contemplate happening?!

The intangibility of the service that a financial planner provides means that customers can not see, touch, experience the "product" as they could with for example with a new flat screen TV. Further the inseparability of your service means that clients can not experience your services without being involved in the process which means they need to engage with you and your staff. The "moments of truth" in the delivery of financial planning services are a daily occurance.

And after all of that no matter your best intentions or the fact that you may be dealing with the same client and say performing the same task such as the annual review of their insurance or investment portfolio the performance of you and your staff will vary.

What can you do about this to reassure your clients but also importantly be even more different (than you already are if you have been following the tips from PCE) from your competitors in the provision of your financial planning services?

1) Dealing with the intangibility of insurance and financial planning.

Solution: Make it tangible.

You need to re-assure your clients about the service that you are about to provide. Visually, this starts with the look of your offices. How is it furnished? Decorations. Art-work. What's the quality of your logo, business cards, letterheads, corporate brochures? (oh....do you have one?). What about your staff? How are they dressed? How are you dressed? Do you look the part? Do they? Do you have a corporate uniform? Should you? What would it say about your business? Might give people the impression that you are here for the long haul. Might focus the client more on the business proposition and less on the individuals who make up the business.

And just where are your certificates, awards, press clippings (oh...do you have any of them?), white papers you have written (you've done one of those yes, positioning you as a specialist in your field of expertise?)...are they displayed in your offices?

What about that testimonial book? A dream board perhaps of your clients living out their dreams after the plans you put in place for them came to fruition. That's in the reception area yes?

And that website...that's a winner yes? You've got a video clip of you and your staff, there's lots of useful information, a place to sign up to more information that's of value, lots of tabs so people can find things easily, it's connected to your social media hub.

You in other words have a business that is well presented, and oozes credibility.


2) Dealing with the moments of truth


Solution: Train your staff on what is expected in delivering service to your clients and workshop with them what it is that you do and how it changes peoples lives for the better. Train them to appreciate the value of what it is that your business provides and then build systems and processes that allows them to efficiently deliver quality service.

This is harder than it looks and means a lot of work in process mapping and building a robust CRM.

3) Variability

And despite all this work you are just not going to be able to avoid things going wrong. So build your processes and follow them to try and standardise/industrialise what it is that you do, but take it as an opportunity when things go wrong. You can review your processes and you can deliver on your initial promise that you should make to your clients which is "this is what we will do if things go wrong...". It's a service promise and should be part of your initial pitch in your engagement letter before the client has even become a client.

And if you really want to test your services get a friend to test drive your staff and other like businesses and find out what you do well, what you can improve and what gaps you need to fill.


Do all of this and people will pay and pay a premium for something that isn't there.

Marketing to your client base - set your expectations!

So you've decided to run a sales campaign, promote a new product, re-engage your client base with a new service offer, re-launch your business with a family advice offer to tap into the intergenerational opportunity or simply try and sell more products into your client base and increase the number of connections your clients have with you.

Let's suppose for arguments sake that faced with an opt-in regime and the need to clearly articulate your services you've designed a unique proposition for your clients. Perhaps you plan to engage your clients differently even positively with things like a lifestyle questionnaire or a wealth index.

How many people will adopt this new paradigm of service?

Turn to marketing 101 and understand the adoption of innovations and understand your client base.

Innovators - are who you should aim to target first. These people are typically adventurous, better educated, younger than the norm and financially stable. Who are these clients in your data base? They will be small in number perhaps 2.5% of your clients.

Hence don't expect huge numbers to beat down a path to your door in these initial days.

But don't give up, the next segment you need to target are the early adopters. These people like to be socially accepted and your marketing needs to speak to that need so tailor your communications accordingly. It's worth it as these 13.5% will reap significant rewards for your efforts.

Next who in your data base are the middle class, deliberate and cautious clients, with above average education and income but need something that is proven - tried and tested. This is when you change your marketing message to use social proof that is tell them stories that this has worked well with clients you have already worked with.

This retake on your marketing - version 3 as it stands is worth the effort as typically they make up the next 34%.

So the messages you need:

version 1 - it's cuttng edge, new and a different way of doing things.

version 2 - this is working and there are opportunities to be part of it.

version 3 - this really works and we have proven results for you to examine.

So be it a new holistic way of engaging your clients. A cutting edge product or service. Or a relaunch of your business - tailoring your message and carefully selecting your targets from your client base not only works but is crucial to your success. Knowing what to expect as above will help you keep motivation to keep pushing ahead with your innovation!

Successfully Engaging Centres of Influence - Slide Set

For the full presentation, Australian based personal risk insurance advisers can contact PCE. But here's a snippet for everyone.

Is strategy advice the key to successful centre of influence engagement?

So select your COI targets carefully.

And match them to your ideal clients.

As an example maybe your ideal clients are like these?

Build and be ready to articulate your capabilities and pitch.

Tailor your pitch to something that suits your style.

Then deliver to your chosen COI.

Finally use PCE tools such as the Wealth Management Index and Client Lifestyle Questionnaire to give the relationship with your COI ongoing life.

What business are you really in? Lessons in marketing

What business are you really in?

We had the opportunity to speak with some of the top performing financial planning businesses in the country over the last few weeks and when posed this question the first answers were:

- we're in the financial planning business

- we're in the superannuation and investment business

- I sell insurance

Really?

We thought that because of what it is that financial planners and insurance professionals that they maximise the possibility that people live well and look after their families. That they provide a plan to deliver hopes and dreams.

Maybe we need to illuminate what we are trying to say here by looking at another industry that for too long and perhaps still today is product focussed.

In our coming blogs we will talk about financial planners deliering hopes and dreams but for now, forget abour FOFA and take what you can out of the evolution of marketing strategy from the humble petrol station.

The modern day model, of a retail petrol station, is dramatically different to the humble four pump driveway positioned next to the motor mechanics workshop and payment kiosk, that greeted motorists thirty years ago. The stations primary role, at that time, was fuel delivery to motorists. Over time, items such as chocolates and beverages were offered, and the store space allocated to these items expanded, as well as the range of items on sale, to a point today where the primary role of the petrol station is to deliver convenience. Satisfying the needs and comforts of drivers has become a major profit centre for outlets, with non-petrol items offering the retailer higher margins than petrol(Azimont & Araujo, 2010). Theodore Levitt argued in his 1975 Harvard Business Review article, “Marketing Myopia”, that no-one really buys petrol, rather, people buy the right to continue driving their cars, thus enjoying the freedom that mobility of transport brings. And with research showing that many customers stop at petrol stations and buy food and beverages without necessarily buying petrol (Azimont & Araujo, 2010), the retail petrol marketing strategy has evolved so that the four P’s of the marketing mix, product, price, promotion and place have been re-mixed to better satisfy the needs and wants of the convenience seeking motorist.

Without a differentiated product, (ignoring the various octane blend formulas promoted by competing retailers), there is no detriment or cost to the consumer to switch brands of petrol(Attri, et al 2010). That problem, of a lack of loyalty to the core product, petrol, has meant that for a petrol retailer the product needs to encompass not only petrol, but factors that can enhance loyalty to the retailer. At a store level, Helgesen et al, (2010), found store satisfaction, which embodies both service and cleanliness, is in the control of the store manager, and was a strong
driver of loyalty. Consequently retailers have changed the focus from selling petrol as the product, to selling convenience, and in order to do so they have needed to respond to what it is that customers define as convenient. Azimont and Araujo (2010) found that convenience meant different things and demanded a different product focus based on another element of the marketing mix, namely place. This changed the product into a range; from the availability of
toilets, wi-fi, hot food options, coffee stations through to shower and change facilities or in another store format: a mini-market providing last minute needs such as groceries, flowers, dvd sales and rentals, and even gifts. Consequently a retail petrol station has shifted from a fuel delivery station, to a retail outlet that can provide for a customer, items that are more important than petrol (Azimont and Araujo, 2010).

Those customers respond, not only then to the mix of products but, to how the available products fit into where and when the customer needs to purchase them. Place, then becomes a vital component of the marketing mix that needs,from the perspective of the marketing strategy, to be redesigned in conjunction with product, to provide the right mix for the frequenting customers. Rosenbloom and Dimitrova (2011) identified the necessity to re-mix the mix to reflect the changes desired by target markets. For the petrol retailer the P of place can be multi-faceted: customers who need a break whilst on a long drive but not necessarily to refuel; truck drivers needing shower and rest facilities; everyday commuters going to and from work; customers needing convenience and shopping for products that are last minute purchases (Azimont and Araujo, 2010). For the everyday commuter , place is often defined as the retail outlet that is on route; to either home or a place of work, with a key satisfaction feature being the relationship with the outlet staff (Attri et al, 2010). In their study of classification of store subtypes, Azimont and Araujo, 2010, identified the need for up to seven store styles based on; the geographic positioning of the store, the type of customers likely to frequent the store, at what times of the day they would and based on the characteristics of their travel, what other services and products they would need. The importance of petrol was of varying priorities and accordingly has resulted in multiple styles of outlets.

Understanding that diversity in product and diverse store configurations are required to meet the needs of the modern motorist is one thing. Attracting the motorist to the store and obtaining repeat business, in other words, loyalty, is another. How the store is promoted, the P of the marketing mix that encompasses communications, advertising, publicity and reputation, becomes an important consideration, as the success of this P, often becomes a trust exercise and a proxy for product quality (Attri et al, 2010). Helgesen et al, (2010), found that retail brand image and individual store image were two different things and suggested that a two tiered approach (overall brand eg: Shell, and individual store eg: Shell, Main Road Eltham) was a vital ingredient for successful petrol retailing. In their study, they found that store satisfaction, was a stronger driver of loyalty than discount cards and overall they determined that brand image is a positive contributor to store image and satisfaction, and in turn store image positively impacts on loyalty and satisfaction. Communication and promotion therefore needs to create a perception
that is tailored to resonate with the needs of the target consumer. With the multi levels of store types required to cater for the different types of motorists, a single message is insufficient to speak to the diverse needs of motorists. A promotion strategy that communicates service quality, and variety of services was found by Helgesen et al, (2010) to be a significant positive driver of chain (brand) image. This multi-dimensional promotional approach is demonstrated by BP Retail Australia. Cricketer Michael Clarke is the face of BP with the tag “when it comes to
performance, it’s what’s inside that counts”. BP service stations are promoted highlighting:the Wild Bean Cafe “providing food and beverages for people on the go”; convenience stores, “from magazines to groceries, our stores have the essentials you need while on the road”; and the BP car washes, “In, Out, Easy”. The promotion of this diverse offer, gift cards and store locater applications for smart phones, further create the connectivity to customers that builds brand loyalty.

In contrast Shell Australia’s promotional language and content focuses heavily on the final P, price. Product and service is highlighted by Shell as being centred around fuel and oil. The major promotion focus on the Shell Australia website is the price benefits of the use of the Shell card. The pitch for Shell is aimed at small business and major fleets with cash flow and cost control highlighted as the key benefits. Online tools are provided as part of the Shell Card to assist businesses manage fuel consumption and pricing. These types of programmes are
described by Helgesen et al, (2010), as packages of benefits aimed at repeat purchases and providing an economic benefit and barrier to switching retailers, that on its own petrol does not provide. These programmes also enable the retailer to build via a client management database a more complete view of its customers. The data however gathered by Helgesen et al,(2010), showed only a small albeit positive effect on store loyalty with these programmes. BP Australia’s approach looks at engendering positive emotions with its customers by fulfilling their needs and wants and in so doing generates store loyalty based on the service experience and convenience, thus tempering the impact of price. Quality, of convenience, of produce, of experience and of the range of services, enables BP Australia to attract customers with a proposition that is not pre-disposed to saving its customers money.

Theodore Levitt, suggested that businesses should answer the question, “What business are you really in?”. For petrol retailers the answer has historically been a distinctly product based answer: the business of selling petrol. Today the retailer that re-mixes the marketing mix is attracting customers to petrol stations by offering convenience and products associated with, the myriad of needs of the travelling motorist. Marketing then is about optimising the 4 P’s in a way that reflects and answers the needs of the target market (Rosenbloom and Dimitrova, 2011). The humble petrol station of thirty years ago has transformed, as a result, into a complex offer that is able to present different propositions to different audiences (Azimont and Araujo, 2010), and in so doing offers customers convenience, sometimes more important to the customer than the fuel in the bowsers.

Greater Success And Sales Using Emotional Intelligence to Engage Staff and Clients

Research studies have related team performance and team characteristics to effective leadership behaviours.

These behaviours encompass emotional intelligence.

And emotional intelligence becomes then a precursor for the demonstration of transformational leadership.

The conclusions drawn then are that facets of brain dominance and emotional intelligence may be potentially useful predictors of transformational leadership behaviours.

So what is emotional intelligence?

Emotional intelligence is described by Herbst and Maree and again by Schelecter and Strauss as a cognitive ability that involves the processing of emotion.

Other models define emotional intelligence in terms of behaviours and skills, including stress management skills (such as stress tolerance and impulse control), self-management skills (such as self-control, conscientiousness and adaptability), as well as social skills (such as conflict management, leadership and communication).

Overall critical in understanding how effective a persons level of emotional intelligence is, is the requirement to understand how an individual perceives, understands, utilises and manages emotions.

Leadership comprises both intellectual and emotional facets and both these facets need to be attended to during the training of managers in order to equip them with sufficient leadership skills.

Transformational leadership behaviour has been found to be positively related to team-leader emotional intelligence and both these are said to be positively related to trust (both in the team leader and in team members) and to team commitment.

It seems that leaders are important creators and sustainers of the processes and dynamics responsible for effective teams.

So in the financial services world - effective client engagement and client servicing comes from having exceptional teams, team members and team dynamics that support a culture of ownership and empathy with the client.

Further the team needs to be crystal clear on the outcome that the business is creating for the client.

Without a leader that can define in client terms the vision for the business with a meaning and relevance that staff can not only believe in but share the vision and help create it - then the business is only positioning itself for transactions with clients and not transformations of clients and the business itself.

Businesses that are not defining a vision, purpose and message for clients, sharing that vision with staff and building capbilities to deliver on the promise may do well in the short term in transactional wins.

But the businesses such as industry funds and the major financial institutions that are shaping messages to win hearts and minds of clients will be the businesses that truly capture the attention and the longevity of client loyalty.

The longer they are able to do this, then the longer they will be able to build their capbilities further to provide true family advice, true intergenerational offerings that deliver on providing the unspoken needs of clients.

Increase client engagement and sales - client seminars and marketing

As we roll into the year and prepare to deliver you some new material and ideas to drive your sales, personal and business success as you positively engage your clients, we thought it important that you start with your marketing diary for 2012 and ensure that you provide continuous education opportunities for your clients.

This means revisting one of the four drives : the drive to learn.

The drive to learn:

- educate your clients - provide them with third party material that educates them on financial and insurance issues - use the resources that this industry provides to educate and dispel myths about finances, investing and insurances

- run tailored seminars that are in line with your clients wants - and can be subsetted into the "clubs" you have created above

- providing them the resources to make educated decisions is critical in meeting these needs

- write a blog or an informative newsletter - a blog is preferable - and have this on your website - make your website a resource centre for your clients - have a client log in where they can find tools and information to assist them

This does mean building some collateral OR in its simplest form it means tapping into the resources you have at your disposal as a financial services/insurance professional and some diary planning.

Plan to run seminars and create newsletter and leverage your relationships with your product providers to do the hard work for you.

That means you save the fun for yourself - engaging the clients.