Archive for the ‘Client Relationships’ Category
My family and I recently visited Ireland and we selected Mr. Lowell Courtney and Mr. David Hudson of Lynchpin Tours (www.lynchpintours.com) to create an itinerary and guide us around the countryside. Our decision to hire an individual tour guide resulted in an error-free and extremely enjoyable vacation that would not have been possible if we had joined a large bus group or attempted to do it on our own.
The analogies between our industry and my family’s experience in Ireland cannot be understated. We chose an independent expert because it was important that we had a very enjoyable experience; too much time and money were at stake to make a mistake. Lowell Courtney exchanged many, many emails with us and spoke several times on the phone about our family’s likes, dislikes, interests and personalities. He carefully constructed a portfolio of hotels, B&B’s and small inns that suited us perfectly. We visited sites that were of interest to us and skipped those that weren’t appropriate. Lowell and David made us feel like we were the most important visitors on the planet.
The process offered by Lynchpin Tours mimics what an excellent financial advisor provides to their client. A significant effort was made to understand all of the needs and desires of the client and a plan was developed and reviewed for accuracy several times. A few bumps developed (such as being in Dublin during the Queen’s visit) but David Hudson immediately adapted our itinerary to avoid any significant loss of quality time.
Sure, we could have tried to do it ourselves, but we wouldn’t have known about the shortcut that Lowell took to avoid a traffic jam in Galway or the great little pub in Kinsale. Never mind that they drive on the wrong side of the road! Without experts like Lowell and David to guide us, it would have been difficult to achieve the same results- sort of like someone who attempts to manage their investments without a professional advisor.
We could have joined a large tour group and received a generic experience, but we had unique needs and requests. For example, one of our most memorable experiences was staying with a couple who run their own B&B; the conversations and interaction we had with them was an invaluable education that could never be duplicated as part of a large tour group. Sounds very much like conversations I have had with clients and financial advisors who want what’s best for them rather than subscribing to the sales overtures of a large brokerage firm.
Interestingly, the cost of our Ireland vacation was not significantly greater than other options. But the experience was! Again, a close corollary with financial professionals.
The bottom line is that if something is important to you, you will make the necessary investment to ensure that the results meet your expectations. And if you want to visit Ireland, do yourself a favor and contact Lowell or David at Lynchpin Tours!
Tags: business, clients, Marketing
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Yesterday, the Senate voted 60-39 to approve the 2,315 page financial regulatory reform bill. The President is expected to sign the legislation sometime next week. The final Dodd-Frank bill requires the SEC to conduct a comprehensive study of all the issues involved in harmonizing the regulation of all providers of retail financial advice, including a fiduciary standard of care and enhanced supervision of RIAs. When signed by the President into law, the SEC would be required to report the results of the study to Congress within six months. At the conclusion of the study, the SEC may promulgate rules that would impose an obligation to act in the best interest of the client without regard to the financial or other interests of the broker, dealer, or investment adviser providing the advice.
“After almost two years of legislative activity, the real work begins as implementation of regulatory reform falls to the SEC and other regulators,” said Dale Brown, President & CEO of the Financial Services Institute. “We are already working to articulate unintended consequences and to bring the unique perspective of independent broker-dealers and financial advisors to this process.”
Our ultimate goal has been, and remains, a standard of care that works in all client situations and in all business models, combined with an industry-funded self-regulatory organization for investment advisers. We have supported the inclusion of the SEC study in the final bill throughout the legislative process. We believe the study represents the best available opportunity to achieve our goals.
We would like to thank everyone who acted on this important issue.
Tags: business, Compliance, Legislation, regulation
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The SEC has announced that they plan to publish a proposal to reform Rule 12b-1 in June 2010. The proposal is intended to address the SEC’s concerns that the fees no longer serve their intended purpose of supporting fund distribution, represent additional sales compensation, and are poorly disclosed to clients.
The Professional Alliance is a member if The Financial Services Institute (FSI) and we have long held the position that Rule 12b-1 provides fair compensation to financial advisors for providing middle-class Americans with critical support and guidance in planning to achieve important financial goals ranging from retirement, to college funding for children, to caring for aging parents. We have vigorously advocated for the retention of 12b-1 fees as an essential way of aligning the interests of the advisor with the interests of their fund shareholder clients. For this reason, preserving 12b-1 fees for the benefit of small investors has been a top advocacy priority for FSI since 2007, when the SEC initially announced its intention to review Rule 12b-1.
In an effort to preserve 12b-1 fees, the Financial Services Institute has meet with senior members of the SEC’s staff and held meetings with each of the five SEC Commissioners in the last month. We are closely monitoring developments and will alert you as soon as the proposal is made public.
Tags: business, clients, Investments, Legislation
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Market volatility has recently returned and I’m sure the number of phone calls from your clients has picked up as well. Hopefully, you have used the past year to prepare your clients for this type of environment (i.e., a secular bear market). The bottom line is diversification- but that doesn’t mean a whole bunch of stocks and bonds! It means using many different non-correlated asset classes that possess different risk characteristics.
It’s safe to say that the days of picking one mutual fund family and putting all of the client’s eggs in that basket are over. Your clients are counting on you to help them preserve and grow their savings, so be sure you’re using all of the investment tools available to you. I have been talking for some time about this current bear market, economic recession, and the problems that sovereign debt presents to us. As professional advisors, we need to look towards alternatives in this type of environment. Let’s assume that the typical investor’s portfolio is 60% equities and 40% fixed income. What if you allocated 30% of that portfolio to a diversified blend of alternative investments? I think you’ll be surprised by the result. I encourage you to review these alternative trading strategies and see how a blend of active trading strategies might optimize your clients’ portfolios. Alternative investments may include absolute return and/or tactical managers as well as managed futures and structured CD’s. Remember, an ounce of prevention is worth a pound of cure.
Tags: asset management, clients, Investments
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At first glance, your reaction may be, “Duh- of course asset management is important- it’s what we do!” But let’s look a little deeper into the whole concept of managing investments and how the decisions we make as financial professionals will have a profound impact on our clients’ lives- and our livelihood.
Asset management should begin with compliance. From selecting appropriate investments to knowing your client’s risk tolerance, everything we do must be in the best interest of the person(s) we are serving. Recently, there has been discussion about increased fiduciary standards for financial professionals. Whatever course legislation takes, it is fairly certain that our compliance burden will increase- perhaps significantly.
Some advisors are going back to the classroom and obtaining securities and/or insurance licenses that enable them to provide clients with products and services that better meet their needs. This is a trend that makes a great deal of sense in the current economic climate and one that will ultimately benefit both the client and advisor.
The decision whether to manage assets yourself or to hire a money manager is another critical element. Some professionals want the freedom to select investments and create a portfolio they can manage themselves; like a conductor, they prefer to lead the orchestra. But other advisors choose to delegate investment selection to a money management firm with substantial resources; in so doing, they concentrate on the client relationship rather than the minutiae of portfolio management.
Finally, the type of investments and insurance products we use with clients will continue to evolve. Diversification does not mean stocks and bonds. Strategies such as absolute return and tactical management will become more familiar as clients demand- and we provide- a more favorable risk/return scenario.
There has never been a better time to be a financial advisor!
Tags: asset management, business, clients
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My wife Kathy and I recently attended a function at Stonehill College in Easton, Massachusetts. We both graduated from Stonehill more years ago than we care to remember but our ties to the college remain as strong as ever since our daughter, Julianne, is a freshman there.
As we look back, one of the most important influences in our lives was our college education. Depending on the chronological period you were enrolled, you may have experienced anything from Vietnam protests to Wi-Fi in the cafeteria. Suffice it to say, America’s college campuses have evolved significantly over the past few decades and will continue to change to meet the needs of incoming students.
If you are in a position to do so, I urge you to consider contributing to your alma mater. The recent economic turmoil has not only wrecked havoc with endowment funds but has also increased the number of students requesting financial aid. Given the importance of a college education in today’s world, it is vital that qualified individuals receive the funds they need to succeed.
Tags: business, clients
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Here are some ideas for helping you deal with the current economy:
- Tip #1- Keep Your Eye on the Ball.
Develop a strategy for your business that allows you to set realistic goals – and to support those goals with cost-effective marketing and communications strategies. We have all heard the adages, “If you fail to plan, you plan to fail” and “It is better to attempt great things and fail than to attempt nothing at all and succeed.” These statements reinforce the importance of knowing where your business is going – to plan for the future. Take the opportunity to step back from the day-to-day operations of your business and reassess what has made you successful to date. Analyze your business by taking an in-depth look at your previous year’s revenue. How does your revenue compare to past years? From where did your revenue come? What services are most profitable for you? What industries are you serving?
- Tip #2 – Know the Criteria for Your “Ideal” Client.
When building a services business it is important to attract the right kind of clients – not just clients with a willingness to pay your fees. Think for a moment about your very best clients. Now think of clients you wish you weren’t working with. Create a list of attributes of your best clients. What characteristics do they have in common? How were they attracted to you? Why do you like working with them over other clients? Make it a goal to grow your business by selectively adding clients you know are a good fit.
- Tip # 3 – Know How You Got Here in the First Place.
What made you successful when you started your business or went into practice? If you woke up tomorrow and had no clients, what would you do first? Now is the time to refocus your efforts on what has worked for you in the past. Your future success is dependent upon being able to replicate what made you successful when you started your practice or business.
- Tip #4 – Target Your Audience and Your Message.
It is highly likely your marketing strategy will be focused toward a number of target audiences – prospective client groups, referral sources, industry sectors. Make sure your messages are uniquely targeted to the audiences you seek to reach and that you are responsive to the needs of each group.
- Tip #5 – Show Them, Don’t Tell Them!
Clients want to see you have done what they need. Focus on providing representative examples of your expertise. Don’t just create a list of services – show prospective clients that you have the breadth and depth required to work with them based largely on your past experience. Create case studies of your best work that summarize each client’s situation, your approach to the problem, and the solution. Results sell!
- Tip #6 – Focus on Relationship Building.
If you are in a service business, the vast majority of your clients have likely come from referrals. Past clients, other professionals, industry associations, friends, family, and business associates have all contributed to your current success. Make a list of everyone you want to reconnect with and promise yourself that you will call a few people each week – just say “hello,” check in, and see how they are doing. Meet for breakfast, coffee, or lunch. Staying connected to the great people you have met throughout your career will lead to opportunities you may never have imagined.
- Tip #7 – Reinvigorate Your Sales Strategy.
Put a process in place to track your sales progress based on where you are with each contact. Track the logical flow of developing new business. Identify your A-level prospective clients and referral sources, track initial communications, summarize your contact’s need, summarize your solution, propose and present your solution, follow up, and negotiate your fee structure. Track both the opportunities you win as well as those you don’t. Remember to stay in touch with your A-level contacts.
- Tip #8 – Be a Stickler for Responsiveness.
If a client or contact calls you, call them back. If they send you an email, respond – the same day. Even if you have no news to report, call them back. It continues to amaze me how many service providers do not return their phone calls and emails.
- Tip #9 – Exceed Your Clients’ Expectations.
When you exceed client expectations, not just meet them, their view of you as a service provider is remembered…especially when they are evaluating their continued relationship with you and your firm.
- Tip #10 – Focus on the Media.
When the economy is tight, there is no better way to expand name recognition and awareness of your firm than to focus on strategic public relations. Develop a public relations plan that will enable your firm to communicate with the media on a regular basis, position members of your firm as subject-matter experts, help you pitch articles to targeted publications and to communicate newsworthy events at your firm. For increasing name recognition, there is no better tool than a targeted strategic public relations effort.
- Tip #11 – Communicate with Your Clients.
Keep your clients in the loop on the work you are doing for them. Let clients know what changes and service enhancements have been made at your firm to better serve their needs. Send a newsletter, an email communication, direct them to your website, or call your clients personally. However you choose to do it, stay in touch with your clients on a consistent basis.
- Tip #12 – Use Your Invoices as a Marketing Tool.
Every month you have the opportunity to communicate the value you deliver to clients through the invoices you send. Ensure this important tool conveys the value of your good work. Don’t just send a bill “for services rendered” with a dollar amount due. Take the extra time to provide a detailed summary of the time spent on your client’s behalf. Make sure the process and outcome justifies the fee. Doing so allows you to sell the ongoing value your firm brings to the relationship.
- Tip #13 – When in Doubt, Ask Your Clients.
Before moving forward on a new marketing campaign, expanding into another market, or launching a new service, consult with your clients. Many services firms have benefited from a conducting client interviews, satisfaction surveys, or focus groups. One client was able to save $40,000 per year on an advertising strategy that respondents to a written survey said had no bearing on their decision to use or refer clients to the firm. Particularly in a tight economy, you need to know your clients’ perceptions and what is important to them.
Tags: clients, Marketing
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