Do your clients really understand your client value proposition (CVP) and know what they are buying from you?
CVP is an acronym readily used by advisers, but do your clients get it? A university marketing lecturer once said to me that you know when you have a client value proposition that works if you get the same answer from ten different clients to this question: “What are you buying from me?” What type of response do you think ten of your clients would give for your business?
I pose to you, that with the level of underinsurance and under saving in Australia, more financial advisers need to master the art of communicating and promoting their CVP. When you are selling the future (for example, trauma insurance and if you may or may not have stroke, or enough savings to fund the lifestyle you’re accustomed to in retirement) this is often more art than science.
Often it is easier to get tied up around what features, benefits and price of platform or product have over another, or whether you should move from product X to product Y because you are convinced it will outperform the other in the future or your portfolio has or will outperform a certain benchmark. Do your clients think this is what you are providing?
I challenge you to think about the why you are selling.
Is your why value-driven, eg “I’m the cheapest”? Or is it about practicality, eg “I take away the paperwork and frustration”? Or is it about quality (“I’m an expert in”) or maybe it’s emotional, eg “I’ll help you achieve financial freedom”? If these were cars they might be a 71 Kingswood, a Hyundai Getz, a Mercedes Benz or a Lamborghini.
Remember, a good client value proposition needs to be supported by a good business model. Value is a two-way street: value in the eye of the client and value (profit) to your business.
Whoever said “selling” was a dirty word was so wrong. If you can ensure someone’s wealth is protected in the event of death, trauma or the inability to work, or that someone can self-fund their retirement and sleep comfortably at night, knowing their time on this planet will run out before their money does, then more Australians are going to be better off for acting than less Australian not acting.
With only one in four Australians holding an adviser relationship, are you getting the support you need to help more Australians protect and grow their wealth?
