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The Globe and Mail newspaper in Canada released on October 27th Canada's Top Wealth Advisors for the year 2022. Amazing financial advisor practices and amazing teams deliver more value with ideal clients. While there is a tremendous amount of research data and methodology that goes into this I look at any advisor and being the best can come down to three key things. The delivery of comprehensive client value. The financial success of the client and their family, their community, and the financial advisor Quality of life of your clients your team, and yourself.
How do you measure comprehensive client value?
First, start with client feedback. According to Business Health research (Business Health research key value practice drivers 2021 USA advisors) says that 85% of financial advisors do not have any formal process for asking for feedback. The 15% of financial advisors who have a formal feedback process earn more than 52% revenue more as financial advisors than those who don't have a formal feedback process. There are several ways you can do feedback including help from your existing firm. if you want to check out a formal feedback tool then click here. We help successful financial advisors collect feedback from their clients and only then we can start to measure the value that they are delivering to them from the client's point of view. If you want to use this tool, reach out to me. You might have a tremendous value to deliver, but not all clients want all of your value and not all clients are experiencing everything that you can offer. Understanding all that you do takes time. Feedback is the mechanism to measure the level of engagement with your best clients.
Delivering comprehensive client value means different things to different clients and financial advisors. There is no clear definition of what a comprehensive financial plan is. There is no clear definition of what quality financial advice is. Therefore clearly define what comprehensive is to your best clients and prospects and deliver more value than your competition. I am sure you run across people that are paying way too much and getting way too little from their financial advisor or institution way too often. I like to define comprehensive financial advice as a list of 12 services to get all of your goals mapped out and your complete financial life in order in all seven areas (tax statement investment risk insurance debt and cash flow) through the 12-touch communication process. What is your definition of comprehensive advice?
How do you create an experience that establishes strong trust?
Successful advisors have learned long ago to create an experience that establishes strong trust. it's about aligning values and goals and constantly understanding your clients better and better. One of my favorite quotes by Benjamin Franklin "There are three things extremely hard: steel, a diamond, and to know one's self." Top advisors understand clients more sometimes than their family friends or colleagues do. They also understand that time is more important than money to these wealthy people. That's why wealthy people delegate everything to their financial advisor and their team to take care of. These people delegate their complete net worth to their advisors and teams. It always surprised me when someone with $500,000 needs two financial advisors and someone with five million needs one. Find the right advisor and team, build a great client experience build a tremendous amount of trust to deliver comprehensive value as described by the client. They have built a proven repeatable process that will deliver more value.
Quality of life as a financial advisor?
Do you have a team or employee value promise that talks about the quality of life and values? As a financial advisor or business owner, you have an obligation to your employees and their families. It is amazing to see successful teams work together for years. in his book The Speed of Trust: The one thing that changes everything paperback February 2008 Free Press Publishing, Stephen M. R. Covey identifies aligning values and how much more gets done in a faster way when the trust is strong. Quality of Life should be debated and talked about at every business planning meeting, and in every conference when talking about successful financial advisors. Elite financial advisors know that quality of life is a critical part of their formula for success. We all know taking more time off earns you more. What does your ideal lifestyle look like? This is a challenging business I've discovered after 33 years of working in it. Congratulations to the top advisors and their teams, their clients, and the firms they work with. Well done!
Related: Look Inside Your Practice To Grow Your Business as a Financial Advisor