It's an interesting question.
PCE found themselves needing to ponder this recently. We had neglected our most important client. The impact was dramatic. The realisation that was had taken them for granted was shattering.
We had lost the connection to our most important clients:
- current state of affairs
- mood
- concerns
- dreams
- level of satisfaction
We had not checked in.
And it forced us to ask the question how many of us, financial services professionals have really looked after our most important client, or is that client subsidising the time we spend on everything and everyone else.
From a financial planning and risk perspective are we really certain that our most important client has in place:
- well defined and executed succession planning both personal and business
- has a map of financial and personal milestones and we are up to date with the progression as well as actively planning for the next checkpoint on that map
- that the safety net of insurances is presently well structured and offering the best coverages with features suited to what is actually important for the nuances that the client possesses
- that we have and continue to engage our client on an emotional dynamic in that we are aware of how simply they are feeling about life, about daily issues, about the dreams long terms and more immediate for example the next twelve months
- and have we taken the time to plan out what those dreams actually are, how they will be fulfilled and what the plan is to work towards them
Simply : have we sat down and engaged, truly engaged our most important client, ticked of the basics and continued the journey.
PCE would argue that as we get caught up in the daily routine, as we battle with FOFA, FOFA implementation and the volume of information and work in our day that we do not deliver to our most important client anywhere close to what is desirable.
And the evidence is all around PCE when we visit advisers.
The most important clients do not have:
- buy sell agreements in place
- inadequate contingency plans for family in the event of business interruption
- other risk management measures adequately catered for
- balance between work and home
- a set plan for the year
- any set goals for the family that are being actively worked upon
- a set time that has been put aside to articulate how they are progressing on life goals : personally, family, business
And here's the worst part.
Exactly who is your most important client?
It's you. And it's your family.
Thursday, 20 June 2013
Tuesday, 4 June 2013
The Golden Goose of Client Engagement : endless source of riches
So, we assume we have your attention or at least tapped into something that you assume you want?
The holy grail of customer engagement, that provides endless streams of customers, happy customers, into your business, talking positively about your business, referring people to your business and even defending your business against the rare detractor.
No need to campaign, to advertise, to form referral relationships : because customers come to you. They seek you out.
Nirvana?
Careful what you wish for.
To do this you need to be prepared.....not for the endless stream of customers ....but you need to prepare yourself and your staff to be willing to do what it takes to truly engage customers.
Yes you say?
Ok, then here is the golden goose as our gift to you.
Trust.
Yes, as simple as that. Customers will beat a path to your door, do business with you and send the people in their networks to you if they trust you.
Simple. The way to deliver this comes and only comes if you are prepared to do the following:
1) Define what you do from not your perspective but from your potential customers perspective.
2) Ensure that all your staff understand and can articulate in a common language that definition.
3) Ensure you and all your staff can explain how you deliver what it is that you do. What is your process?
4) Expose your vision. Get this message out there via social networks and a web presence that has at its core the primary purpose of adding value to your target clients. This does not mean selling something (unless your target market is price driven and transactional).
5) Expose yourself. Who are you? Who are you really? Who are your staff? What are your broader values?
6) Engage you customers with methods that tap into and uncover their values, motivations hopes and dreams.
7) Collaborate with your customers. Engage them at every opportunity. Crowd source.
8) Establish and run networking and value add events that deliver on engaging customers with topics aligned to their values.
9) Reassure customers along their service journey with you.
10) Communicate constantly with your customers when you don't have anything to sell.
11) Make their day : practice random acts of thoughtfulness.
If you are prepared to do this and build and/or utilise the expertise and templates that can deliver and coach you to deliver on every one of these points then you will achieve in your customers mind the feeling that Scott McKain describes as "they just know me". That our friends is ....trust. And you will then have the golden goose delivering streams of happy and referring customers.
The holy grail of customer engagement, that provides endless streams of customers, happy customers, into your business, talking positively about your business, referring people to your business and even defending your business against the rare detractor.
No need to campaign, to advertise, to form referral relationships : because customers come to you. They seek you out.
Nirvana?
Careful what you wish for.
To do this you need to be prepared.....not for the endless stream of customers ....but you need to prepare yourself and your staff to be willing to do what it takes to truly engage customers.
Yes you say?
Ok, then here is the golden goose as our gift to you.
Trust.
Yes, as simple as that. Customers will beat a path to your door, do business with you and send the people in their networks to you if they trust you.
Simple. The way to deliver this comes and only comes if you are prepared to do the following:
1) Define what you do from not your perspective but from your potential customers perspective.
2) Ensure that all your staff understand and can articulate in a common language that definition.
3) Ensure you and all your staff can explain how you deliver what it is that you do. What is your process?
4) Expose your vision. Get this message out there via social networks and a web presence that has at its core the primary purpose of adding value to your target clients. This does not mean selling something (unless your target market is price driven and transactional).
5) Expose yourself. Who are you? Who are you really? Who are your staff? What are your broader values?
6) Engage you customers with methods that tap into and uncover their values, motivations hopes and dreams.
7) Collaborate with your customers. Engage them at every opportunity. Crowd source.
8) Establish and run networking and value add events that deliver on engaging customers with topics aligned to their values.
9) Reassure customers along their service journey with you.
10) Communicate constantly with your customers when you don't have anything to sell.
11) Make their day : practice random acts of thoughtfulness.
If you are prepared to do this and build and/or utilise the expertise and templates that can deliver and coach you to deliver on every one of these points then you will achieve in your customers mind the feeling that Scott McKain describes as "they just know me". That our friends is ....trust. And you will then have the golden goose delivering streams of happy and referring customers.
Monday, 20 May 2013
Getting 70% referral rates from your mortgage broker with positive language and great timing
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.
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.
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.
Friday, 26 April 2013
Women, Motivation, Fear of Success, and Being Real
PCE is surrounded by lots of strong women. Gutsy, determined, motivated, fearless. Be it business or socially, at community and social groups : they are there : fighting. Fighting for a dream, a goal, sometime for sanity, for love, for what they believe in. These women are achievers.
But why is it that studies of achievement motivation do not predict the level of achievement motivation for females as well as these studies do for males?
Women often obtain higher test-anxiety scores than males. Are they just more anxious?
Maybe there is another explanation. Have females in our culture (Western) been encouraged to be successful, whilst also trying to live up to conventions : the good daughter, the dutiful wife, the multi tasking mother?
Is there a motive to avoid success and fear it : as women battle with convention?
Evidence from psychological studies shows exactly that. That fear of success or success avoidance is heightened when anxiety is present about breaking with convention or especially in relationships : being competitive with a male partner.
Differences in achievement therefore has nothing to do with ability but with culturally imposed sex differences in motivation.
Regardless of how strong and fierce the women PCE knows are: there is something to remember.....like all people recognition, being valued, being supported, sense of purpose and support is critical.
Men have built support mechanisms for all of this : the workplace, the social culture of the workplace, the weekly boys night on a Friday.....and dare I say it ....golf.....
What's missing for women are these conventions and more : the conflict over dual roles requires a sense of purpose more clearly defined PLUS the support mechanisms from a partner of : the freedom to speak and communicate and be heard, and task mutuality ....ie doing things together that produce results: small wins here a key.
There are rules of engagement required. But women of the world hear this : be crystal clear about your WHY. Craft it, be specific, clear and then articulate it. Share it. Live it.
Above all once you have that clear purpose that is about you and you get the support to fulfil it...you can afford to be fierce, fearless and driven....and all the rest will follow, because you have nurtured yourself first and when you are feeling like you are breaking through you really can do anything.
But why is it that studies of achievement motivation do not predict the level of achievement motivation for females as well as these studies do for males?
Women often obtain higher test-anxiety scores than males. Are they just more anxious?
Maybe there is another explanation. Have females in our culture (Western) been encouraged to be successful, whilst also trying to live up to conventions : the good daughter, the dutiful wife, the multi tasking mother?
Is there a motive to avoid success and fear it : as women battle with convention?
Evidence from psychological studies shows exactly that. That fear of success or success avoidance is heightened when anxiety is present about breaking with convention or especially in relationships : being competitive with a male partner.
Differences in achievement therefore has nothing to do with ability but with culturally imposed sex differences in motivation.
Regardless of how strong and fierce the women PCE knows are: there is something to remember.....like all people recognition, being valued, being supported, sense of purpose and support is critical.
Men have built support mechanisms for all of this : the workplace, the social culture of the workplace, the weekly boys night on a Friday.....and dare I say it ....golf.....
What's missing for women are these conventions and more : the conflict over dual roles requires a sense of purpose more clearly defined PLUS the support mechanisms from a partner of : the freedom to speak and communicate and be heard, and task mutuality ....ie doing things together that produce results: small wins here a key.
There are rules of engagement required. But women of the world hear this : be crystal clear about your WHY. Craft it, be specific, clear and then articulate it. Share it. Live it.
Above all once you have that clear purpose that is about you and you get the support to fulfil it...you can afford to be fierce, fearless and driven....and all the rest will follow, because you have nurtured yourself first and when you are feeling like you are breaking through you really can do anything.
Wednesday, 17 April 2013
Social Media Marketing Strategies for Financial Advisers
Today we are running a social media marketing and communications workshop for financial advisers.
Our love affair with SM started 4 years ago when in all seriousness we were considering career options.
After reading the basics in Groundswell by Charlene Li, then moving to The Hypersocial Organisation by Gossieaux and Moran and then Open Communication again by Li : it was discussed with an organisation we were involved with that the role of a social media manager was needed to build a community of our clients for collaboration.
They thought we were crazy. And nothing became of that.
After leaving that organisation our interest shifted to the practical application of social media for financial advisers.
And that what today is all about.
We refer today to the work of Safko and Amy Jo Martin : what does it take for success:
1) Whats you message?
2) How are you going to stand out?
3) What communication tools are you going to use?
So have something to say, make it interesting and publish it where people can find it.
Today we will talk about blogging, twitter, and social networks. How people use them and importantly how financial planners can easily apply these tools to their business.
But most of all the technology is not the hard part in fact it's the easiest.
What you need to do is:
- figure out what you want to say
- understand that you need to define to clients and prospects : why you?
- you need to be ready to be real, to share, to listen, to be responsive
Those last 4 points are the key to success in any marketing strategy.
Our love affair with SM started 4 years ago when in all seriousness we were considering career options.
After reading the basics in Groundswell by Charlene Li, then moving to The Hypersocial Organisation by Gossieaux and Moran and then Open Communication again by Li : it was discussed with an organisation we were involved with that the role of a social media manager was needed to build a community of our clients for collaboration.
They thought we were crazy. And nothing became of that.
After leaving that organisation our interest shifted to the practical application of social media for financial advisers.
And that what today is all about.
We refer today to the work of Safko and Amy Jo Martin : what does it take for success:
1) Whats you message?
2) How are you going to stand out?
3) What communication tools are you going to use?
So have something to say, make it interesting and publish it where people can find it.
Today we will talk about blogging, twitter, and social networks. How people use them and importantly how financial planners can easily apply these tools to their business.
But most of all the technology is not the hard part in fact it's the easiest.
What you need to do is:
- figure out what you want to say
- understand that you need to define to clients and prospects : why you?
- you need to be ready to be real, to share, to listen, to be responsive
Those last 4 points are the key to success in any marketing strategy.
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