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With major regulatory changes and the emergence of robo-advisors in the fintech world, now more than ever in history has it been more important for financial advisors to be able to clearly articulate what clients pay and what clients get for what they pay.
In other words, “how do you explain to a client, what I pay in dollar terms and what I get in value terms? The three keys in articulating your value are processes. As the saying goes, the three keys to success in real estate are location, location, location. In practice management for financial advisors, the three keys to success are process, process, process. The advisors who have proven processes to articulate their value do significantly better than advisors who lack critical processes.
Getting clarity, the first key
Getting clarity around what you do and your process to deliver value, you must have a documented process. To answer the question what do I get for $5000, $10,000 or more per year? In workshops, when I ask advisors the question, what do I get for $10,000 per year, most are answering the question off the top of their mind. The next question in the workshop helps them get more clarity. The next question is” what do I get for $20,000 per year?” Usually, it is the same answer as the last one and comes off the top of their mind. This is where clarity comes in. It is not the amount that I pay, it is the value I receive for what I pay. Do you have it in writing and can you clearly articulate what value I receive? Building a value promise document is the first process to help advisors clearly articulate the value clients receive and your process to deliver it. This is an ongoing process, so you can constantly improve the value you deliver and deliver more and more value. Start by putting it in writing.
The written process, the second key
After the process is documented, you must have it scripted for clarity .Once you have the value that you deliver to clients in writing, have it scripted or written out so you can hear how it sounds as if you were a client. Does it make an impact on
you, or does it sound like something every other advisor would say? What questions do you ask to help people get clarity around their finances and goals? What type of outcomes am I looking for and willing to pay for as a result of your work? For the most part, we think it is our job to ask questions and for clients to supply the answers. But what happens when the tables are turned? Would we make any sense? Or would our answers tumble out incomplete and unclear?
Your value promise document takes on the seldom considered idea that your clients ask an awful lot of questions. Simply put, the questions of your clients reveal what is important to them, what they want, what they wanted to know of us and from us, and what they want to happen, the outcomes they are searching for. Their questions reveal their greatest intents. Ultimately, though, the questions of our clients reveal what we ourselves should be asking. That is if we are brave enough. Are we?
Clarity through conversations, the third key
In my workshops, I ask advisors to write down three to five things of value, your best clients are willing to pay for and holds great value to them. Rarely if ever, advisors write down what I consider three critical words to explain their value. The words are conversations, exercises or discussions. No matter what you call it, having key conversations with clients about important areas in their life so they can gain clarity is valuable. The value is in the conversations (or call them exercises or discussions) you have. Think about this. One of your values is to help people gain clarity around their financial goals for their future, through your conversation. Can people do it on their own? Yes. Do their get a deeper understanding of their financial goals and put it down on paper. Sometimes. Do they sit down with their spouse and get clarity around where they are going together? They gain a deeper, more objective insight into where they have been and the new direction that will bring clarity to their lives. Again, the value is in the conversation. I would encourage you to ask this question. Would it be valuable to get clarity around your goals for the future and put it on paper ?
With the rise of #fintech and robo advisors, how many of them would be able to have a valuable conversation or discussion to help people gain financial clarity? Start by getting clarity around the value you deliver for clients and put it on paper. Then clearly articulate it and describe your value. Part of your value is in your conversations. Now you have the three keys to articulating your value, which will give your clients and prospects more clarity, and more importantly, you.