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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The number of financial advisers in the country fell from 314,000 in 2004 to 310,000 at the end of 2008, according to a study by Cerulli Associates. Given that the average financial advisor is 49 years old and that 14 percent of advisors are over 60 years of age, the decline is expected to accelerate as more brokers reach the age of retirement. “As the Baby Boom advisers retire, the financial advisory industry runs the risk of not being able to meet” investors’ demands, analysts at Cerulli wrote.
The perceived problem is the lack of young trainees- paraplanners- assistants- who want to take over for these retirees. But there are other critical mega-trends, beginning with the definition of “financial advisory industry.” Traditionally, that has meant a human being who manages investments. But the term must be expanded to include any media from which an individual investor obtains information upon which they rely for investment decisions. Many people- for good or bad- will get advice from a television show or magazine or online web site. For them, in their mind, the financial advisory industry is alive and well.
But let’s look at the traditional method of delivering financial advice. Why aren’t more individuals called to this profession? The first reason may be the general distrust in our financial system. With all of the negative publicity over the past few years, ranging from Madoff to mortgage brokers, is it any surprise that young people are opting for a career path that is less littered with problems?
Another consideration is that most financial advisors “came of age” during the introduction of financial planning and the accompanying boom in the mutual fund industry. Previously, the American public saved their money in banks; now, they invest through 401(k) plans and mutual fund accounts. Thus, for people younger than 40 years old, investing isn’t something new. They are comfortable with it and feel they can do it themselves, without the need for a financial advisor. And if they don’t see the need for an advisor, why would they choose that career path?
Finally, technology has impacted the investment world significantly. In the 50′s and 60′s, people who did invest would wait until they read their newspaper the next day to see how their stocks performed. Brokers were valuable simply because they had access to information not readily available to the public (e.g., company conference calls were restricted to analysts). But in today’s age of instant information, computers are a necessity. Younger investors are more apt to access a database than rely on a human being for financial advice.
Does this mean the death of the financial services industry as we know it? Yes and no. The need for financial advice and guidance will always exist. But the delivery method will be more technology-intensive. Older- and wealthier- investors will continue to prefer a personal touch. But as wealth is transferred to the next generation and subsequent generations after that, the preferred method of receiving financial advice may be via a mobile device.
To be successful, financial advisors must embrace technology and incorporate it into their practice. They must also become more transparent- sharing their research and conclusions with clients rather than keeping it a closely guarded secret. And finally, they must show the next generation why their profession deserves to survive.
Tags: business, clients, Investments, Marketing
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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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