Transcript Advisor discovery strategies: know your client

Client Discovery
Discovery strategies
Our focus for today
1. Ensure fit
1. Understand their
expectations
2. Develop a deeper
understanding
2. Define approach
3. Propose process
Discovery
Expectations
Deliver
Advice/Solutions
Discovery strategies
Value Continuum
Salesperson
Focused on their agenda
Product dominates their
thinking and most
discussions
Trusted
Advisor
Delivers value in
every conversation
Authentic
Uses minimal discovery
process
Demonstrates beliefs,
values through
behavior
Drives toward a hard
close
Asks thought
provoking questions
Discovery strategies
Relationship Gap
Client
Level of
interest in the
relationship
“Relationship Gap”
Salesperson
Initial
contact
Sale
Made
Time
Discovery strategies
Relationship Gap
Client
Level of
interest in the
relationship
“Relationship Gap”
Trusted Advisor
Initial
contact
Point of
Engagement
Time
PREP discovery model:
People and relationships
Risk profile
Emotions and beliefs
Priorities
Discovery strategies:
People and relationships
R
E
P
People and Relationships
Individual
Family
People and relationships
Chart the people and relationships that matter
Parents
Parents
Siblings
Siblings
Executor
Executor
Client
Spouse
Business
Partners
Business
Partners
Step
Child
1
Child
A
A
Child
2
Grandchildren
B
C
Step
Child
3
Child
D
Guardian
People and relationships
What are some of the
client’s key business
relationships?
What process
does the client
wants you to
follow?
What are some
of the client’s
goals?
Client
Who are the
client’s other
trusted
advisors?
Who are all of
the key people
in the client’s
life?
What assets
does the client
own?
Adapted from Breaking Through, John Bowen, 2008
Discovery strategies:
P
R isk profile
E
P
Risk profile
Crouching issues – Hidden risk
Emergency Risk
Retirement Risk
Business Risk
Personality Risk
Market Risk
Family Risk
Health Risk
Legal Risk
Risk profile
Goldman Sachs’ Top Financial Risks 2005
High
A) Oil
A
C) U.S. budget/Trade deficits
C
B
D
Impact
B) Terrorism
D) Environmental issues
E) Alternative investments
E
Low
High
Probability
Top 10 Financial Risks to the Global Economy- Conference Proceedings 2005, Global Market Institute, Goldman Sachs
Risk profile
List of major life events
A)
B)
C)
D)
E)
F)
G)
H)
I)
J)
K)
L)
Moving in with partner
Marriage
Having children
Buying home
Divorce
Job loss
Starting a business
Retiring
Remarriage
Separation
Major purchase
Winning the lottery
M)
N)
O)
P)
Q)
R)
S)
T)
U)
V)
W)
X)
Legal issues
New job
Personal health issues
Children returning home
Family health issues
Major change in finances
Paying for children’s education
Change in living arrangements
Caring for parents
Adopting a child
Children leaving home
Inheritance
Risk profile
Sample Risk Chart
High
E) Divorce
Eh
T
I
I) Remarriage
R) Kids’ education
T) Aging parents
Impact
A) Moving in with partner
B) Marriage
C) Having children
D) Buying home
E) Divorce
F) Job loss
G) Starting a business
H) Retiring
I) Remarriage
J) Separation
K) Major purchase
R
Ew
Low
High
Probability
L) Legal issues
M) New job
N) Personal health issues
O) Children returning home
P) Family health issues
Q) Major change in finances
R) Paying for children’s education
S) Change in living arrangements
T) Caring for parents
U) Adopting a child
V) Children leaving home
Risk Profile
Retirement Risk:
Probability an Average 65 year-old Canadian Will Live to Age…
Age
Male
Female
Joint
70
89.13%
93.94%
99.34%
75
73.99%
84.90%
96.07%
80
54.76%
71.42%
87.07%
85
33.44%
52.61%
68.46%
90
15.14%
30.60%
41.11%
95
4.34%
12.03%
15.85%
Source: Moshe Milevsky, The IFID Centre
Risk Profile
Retirement Risk - Longevity
•
Averages
•
Make it personal
•
www.livingto100.com
Discovery strategies:
P
R
E motions and beliefs
P
Emotions and beliefs
Values
Life
experiences
Upbringing
Client
Passions
Beliefs
Fears
Dreams
Discovery strategies:
P
R
E
Priorities
Priorities
Life comes at us…fast
Family
Members &
Their Ages
Doug
53
Tammy
41
Kaitlin
12
+5
Years
10
Years
83
In-Laws
70’s
20
Years
25
Years
30
Years
Retirement
Retirement
Education
funding
Home
financing
Alexandra 12
Mother
15
Years
Long-term
care
Long-term
care
Source: John D. Gresham - http://greshamcompany.com/_vti_bin/shtml.exe/tools.html
Inheritance
Priorities
Client
Advisor
Wealth Planning
L aterlife
I
nsurance
F amily
E state Planning
Transition/Career
Planning
Premature
Death
Children
Parents
Will/POA
Pension
Disability
Education
Living
Expenses
Tax
Strategies
CPP/OAS
Critical
Illness
Start in life
Caregiving
Beneficiaries
Living
Expenses
Asset
Protection
Charities
Business
Succession
Priorities
Sample Family
Advisor
Wealth Planning
L aterlife
Transition/Career
Planning
I
nsurance
F amily
E state Planning
Premature
Death
Children
Parents
Will/POA
Pension
Disability
Education
Living
Expenses
Tax
Strategies
CPP/OAS
Critical
Illness
Start in life
Caregiving
Beneficiaries
Living
Expenses
Asset
Protection
Charities
Business
Succession
Discovery strategies:
Integrating into
your practice
Integrating into your practice
PREP model of discovery
People and relationships
Risk profile
Emotions and beliefs
Priorities
Integrating into your practice
Discovery is a two-way process
Things that matter
to the client
Things you do well
Value
Proposition
Value Proposition
=
your brand
Integrating into your practice
Discovery is a two-way process
I am an
expert in structuring
charitable donations to
benefit the charity while
minimizing client’s
tax burden
I want to “will” money
to my favorite charity
and take full advantage of
any tax benefits
Value
Proposition
Value Proposition
=
your brand
Integrating into your practice
Branding: your “discovery” process
Biography/Business
– You as a person. Your stories. Your business.
Reasons for what you do/how you act
– Business beliefs and behaviours.
Actions you take/processes
– Client experience.
Niche served
– The people you serve. Your ideal client. Your “tribe”.
Differences
– Your focus. Your remarkable features.
Integrating into your practice
Investor’s perception of importance
Investment
Performance
Advice
Investors
Advisors
• don’t understand what advisors do
• often talk investments
• cannot measure good advice
• difficult to show impact of advice
• concerned with rates of return
Integrating into your practice
Where it needs to be
Advice
Investment
Advice
Performance
Advisors
Investors
• offer complete wealth
management solutions
• understand what advisors do
• able to demonstrate the impact
of advice
• able to measure good advice
• value intangibles
Discovery strategies:
How we
help you
Getting from “knowing” to “doing”
Know
Plan
Do
Getting from “knowing” to “doing”
Action
Steps
Strategic Implementation Plan
Strategy:
Doing
Timeline
Timeline:
Rationale
Steps to
Doing
Strategy
Rationale:
Action Steps:
1.
2.
3.
4.
5.
Knowing
6.
7.
Getting from “knowing” to “doing”
“All truths are easy to understand once they are discovered; the
point is to discover them.”
- Galileo
How we help you
Website
Roadshows
Advisor workshops
Client
events
Consulting
Conferences
www.ci.com/pd
www.ci.com/PD
www.ci.com/pd
Thank you
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