For financial advisers only

“… Because we’re worth it”

Establishing the right image and gaining client commitment through effective client engagement and education

Lawrence Emm

Business Change Specialist

TODAY’S AGENDA

Context Communicating with existing clients Re-establishing value and worth New client commitment Tools for the job Next session

For financial advisers only

For financial advisers only

THE COMPLETE PICTURE

CLIENT NEEDS PROPOSITION SERVICE CONTENT PRICING PROCESS AND IT PEOPLE CAPABILITY

ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY

For financial advisers only

THE CLIENT’S PERSPECTIVE

      

Clarity Value for money Tangibility Straightforward Not over complicated or complex or full of jargon Accessibility Able to speak to people who understand me

For financial advisers only

KEY QUESTIONS

        Which clients do we want to retain?

Which clients do we want to lose – if any?

Which clients are profitable?

Which clients are unprofitable?

Do we have the right type of clients?

Are clients getting the correct level of service?

Are clients paying us for our true value and worth?

Can we articulate and explain our value and worth?

CLIENT RE-ENGAGEMENT PROCESS

For financial advisers only

For financial advisers only

TRANSITIONING EXISTING CLIENTS

• Only consider existing client engagement when you have established and documented the ‘new client experience’ • Stay focused on profitability • You must be able to articulate and explain your value and worth in a way the client can clearly see the benefit of continuing to work with you and pay you

For financial advisers only

CLIENT CATEGORISATION AND SEGMENTATION

Use your new client service titles Analyse existing client data in terms of income against costs – where data is available Categorise existing clients – aim to have 60% of existing clients comfortably fitting into one of new service propositions Segment 40% remainder as follows:  highly profitable – Platinum Superstars!

  currently unprofitable – but have potential to be profitable currently unprofitable – unlikely to have potential to be profitable  do not have sufficient data - profitability or potential

For financial advisers only

SETTING THE RIGHT TONE – CLIENT REASSURANCE

Dear Mr Williams,

You will be aware from recent press and media reports that significant changes are scheduled to take place within the financial services profession from January 2013. Here at Tollarday Wealth Management you will be pleased to know that we have operated ahead of these industry benchmarks for some time and pride ourselves that all our advisers, and a number of our client management team, are already qualified to Chartered Financial Planner status which is higher than the new professional standard set by our regulatory body. At our next review we will guide you through how we intend to simply formalise the way we have worked in partnership with you over the last 8 years while managing your tax and estate planning. We will also discuss how you will continue to receive the same high levels of ongoing advice and service in the future as one of our valued clients. If you have any questions in the meantime please do not hesitate to call me on 01234 567890.

For financial advisers only

CLIENT CONTACT STRATEGIES

Typically these may include:  Seminars  Client review meetings   Telephone Email   Letters Social media Remember that some clients will need to have several approaches using different contact strategies to effectively communicate the need for change and gain their commitment.

For financial advisers only

CLIENT CATEGORISATION AND SEGMENTATION

CURRENTLY UNPROFITABLE BUT WITH POTENTIAL

Use the ‘campaign’ approach highlighted in later slides Highlight benefits of client choosing you as their trusted adviser Enclose client services leaflet Highlight benefits of Mid-Range option and routine reviews and pro active services Explain that client has choice and now needs to decide how want to work together (or not) in future Ask client to complete ‘tear off slip’ and return or call office to discuss

For financial advisers only

CLIENT ENGAGEMENT – PLANNING TEMPLATE

Activity What are you trying to achieve?

(Objective) What is the activity about?

(Proposition) Who are we trying to influence?

(Target) What do we want them to know?

(Key Messages) How will we communicate?

When will this happen?

(Method and Timing) Who will do the work and what will it cost? (Resource and Budget) How will we know if it has worked? (Measure of success)

For financial advisers only

CLIENT ENGAGEMENT – PLANNING TEMPLATE

ENGAGING CLIENTS BEYOND 2013

How do advisers spend their time?

... and where do most clients perceive value?

Where advisers spend their time What clients value Financial data gathering Data analysis Planning and preparation Research and administration Product advice Present plan Review & ongoing service Relationship management Source: Cerulli Associates FPA Principal Member Survey November 2002

For financial advisers only

“

B R A N D

Tri-angle ”

Clients

Deliver Reality

“B R A N D is eve touc ry pa hes rt of the the cus bus tom ines er” s tha t

Set Expectations

People Company

Involve and Organise

Offices Fellow Advisers You Para-Planners Webs ite Cars Documents Communications: politeness and efficiency

Service: From client expectations to consistent delivery Client “Story” To demonstrate WORTH and BENEFIT Ongoing service delivery Stage Four REVIEW AND RETAIN Revenue and commission management Initial data gathering Transactions and “new business” Detailed fact finding Research, report and recommendations Stage Three RECOMMEND AND IMPLEMENT Stage One CLIENT ACQUISITION Stage Two GATHER DATA AND PREPARE RECOMMENDATIONS

For financial advisers only 

Premier



Select



Assist



ABC Wealth



ABC Planning



ABC Advice



Platinum



Gold



Bronze

  

A Class B Class C Class



XYZ Elite



XYZ Standard



Client Select



Financial Consultancy



Financial Planning



Financial Advice

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ADVICE AND SERVICE PROPOSITIONS

Financial Wealth Management

”We provide financial consultancy and proactive financial management for business and private clients with complex affairs – we will work with other professionals to create and manage a bespoke, comprehensive and evolving strategy”

Financial Planning

“We provide straightforward financial advice to make sure you have the right advice and product solutions for your immediate and future needs”

Financial Advice

“We will arrange to transact particular financial products at your request”

A CHOICE OF SERVICE PACKAGES

For financial advisers only

For financial advisers only

6 KEY QUESTIONS

Why will clients come to us?

What will we do for them?

What and when do we need to do? – service content What information will we provide – when?

What processes and IT do we need to make it happen?

Right people right place - right time?

For financial advisers only

HOW DO WE WANT TO BE SEEN BY CLIENTS

SIMPLICITY INSURANCE ADVISERS What do we do?

Streamlined advice in one meeting to make sure people have the right policies for their needs

Who do we do it for?

Families and working people between the ages of 30 and 50

How do we do it?

Straight forward fact find and product/fund selection software – automated reports and other documents

Where do we do it?

In our high street “shop-front” office or in people’s homes

PREMIER WEALTH CONSULTANTS What do we do?

Expert financial and tax planning to enable the long term management of investments through a detailed plan that is regularly reviewed

Who do we do it for?

Private clients with over £500k

How do we do it?

Working with other professional advisers from a consultancy perspective to use our in-house technical skills and expert software to pro actively manage clients’ affairs

Where do we do it?

In traditional style offices in the “professional quarter”

For financial advisers only

This is what we do …

We will ensure we understand what each of our clients want We will always explain to you the choices and options you have We will explain our approach to planning, research and analysis We will show you what is required to make it work for you We will provide regular reviews and recommend only appropriate changes

This is how we do it …

We will help you to think about what is important what you want to achieve, fix or avoid We will carry out research necessary to ensure you receive the best advice – we will draw up a plan to make everything crystal clear and logical We will explain all the choices of levels of advice and service available and help you make the right decision We will only do what is right for you – we will arrange and implement any necessary solutions such as products, funds or trusts – we will agree ongoing services and contact We will do what you have asked us to do and meet as often as you have agreed and provide other ways of keeping in touch to keep you and your plan up to date

These are the benefits to the client – these have real value

CLARITY A succinct picture of where you stand CHOICE Flexible options CLEAR route to follow CERTAINTY so that you stay on track

For financial advisers only

CLIENT ENGAGEMENT – CLIENT COMMITMENT

Understanding what our clients want We will help you to think about what is important, what you want to achieve, fix or avoid We offer all clients an initial half-hour meeting at our expense in order for you to see if there is a fit between us and if you like the approach we take.

We will gather some basic information, answer your questions about how we might work together and explain each of the stages of financial planning. We can give you examples of the work we have done with similar clients and an indication of the typical costs involved.

For financial advisers only

THE LANGUAGE OF VALUE AND WORTH

OLD WORLD FREE COST - PRICE NO OBLIGATION SALES ADVISER COMMISSION ADMINISTRATION SUPPORT STAFF “EASY 5 MINUTE JOB – SIMPLE AND STRAIGHT FORWARD” UNSTRUCTURED, AD HOC CONTACT NEW WORLD “AT OUR EXPENSE” VALUE – WORTH COMMITMENT ADVICE FINANCIAL PLANNER FEE – SERVICE CHARGE CLIENT MANAGER - EXECUTIVE “USING COMPREHENSIVE TOOLS AND EXPERTISE …” ROUTINE AND AGREED SERVICING

For financial advisers only

THE CRITICAL POINT

The initial engagement meeting will become the most important opportunity to establish:

– –

Value and worth Clear expectations

–

Gain client commitment

CREASTING THE RIGHT IMPRESSION

For financial advisers only

For financial advisers only

A DISTINCT CLIENT ENGAGEMENT PROCESS

For financial advisers only

A DISTINCT CLIENT ENGAGEMENT PROCESS

For financial advisers only

UNBUNDLING THE CLIENT EXPERIENCE

Stage 1 Stage 2 Stage 3 Stage 4 Client Engagement Strategy and Planning Implementation Service



Information gathering



Present and negotiate client propositions



Agree basis for working together



INITIAL 30/40 Minutes “AT OUR EXPENSE”



Information gathering – Risk Analysis etc.,



Analysis and Product research



Lifestyle analysis and report



FIXED OR MINIMUM FEE OR HOURLY RATE



Present recommendations



Agree asset allocation



Applications - Reasons why



FIXED OR MINIMUM FEE



Update Lifestyle analysis



Recommend change (or no action)



FIXED OR MINIMUM FEE OR HOURLY RATE

For financial advisers only

A CLIENT SERVICE AGREEMENT - EXAMPLE

For financial advisers only

SUMMARY

     Clients will pay explicit advice and service charges (fees) only where they can see tangible value and worth Articulate value – not price and cost Don’t over-promise (and under-deliver) Use website, client service literature to reinforce your expertise, value and worth Now is the time to develop and practise – 7 months to R-Day

For financial advisers only

REHEARSE AND PRACTISE

We can learn from the experiences of Heathrow T5 … Businesses need to move from concept to implementation by engagement and buy-in of all staff. By necessity this will mean significant investment in rehearsal, practise and review as well as the business setting clear expectations and managing performance.

For financial advisers only

This presentation is designed for and directed at professional financial advisers. It should not be relied on by consumers.

This document is based on Skandia’s interpretation of the law and the HM Revenue and Customs practice as at January 2012. We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change.

For financial advisers only

www.skandia.co.uk

Calls may be monitored and recorded for training purposes and to avoid misunderstandings.

Skandia provides you with access to its investment platform, known as Skandia Investment Solutions. Within this platform you can open an ISA and Collective Investment Account provided by Skandia MultiFUNDS Limited, and a Collective Retirement Account and Collective Investment Bond provided by Skandia MultiFUNDS Assurance Limited .

Skandia Life Assurance Company Limited, Skandia MultiFUNDS Limited and Skandia MultiFUNDS Assurance Limited are registered in England & Wales under numbers 1363932, 1680071 and 4163431 respectively. Registered Office at Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom. All companies are authorised and regulated by the Financial Services Authority with FSA register numbers 110462, 165359 and 207977. VAT number for all above companies is 386 1301 59.