There’s been a positive trend over the past few years whereby Australians on the whole are not only showing increasing appetite for taking control of their finances but also taking active steps to do so.
In part this is influenced by the growth of digital, making it easier for people to navigate the world of financial planning: online resources, independent product and service reviews, and tools and calculators allow consumers to compare what’s on offer, and go some way towards helping them identify their own solutions.
Yet, despite this transition towards greater self-sufficiency, I see plenty of room for financial planners to add value to consumers:
- Take a holistic approach
Rather than expecting your customer to go and find a broker or accountant, look at how you can provide a ‘one-stop’ shop. This doesn’t necessarily mean having everyone under one roof (although some forward thinking practices are starting to think this way), it means not operating in a silo.
Create partnerships with other financial services providers to expand and deepen your customer proposition. Working with other professionals can also help to create a referral network, generating new customers. Team up with others and it’s a win-win for you both.
- Think long term
Every encounter you have with a new prospect should be viewed as the start of a long -term relationship, so act accordingly. Consider the full financial services lifecycle – someone might be coming in for help with their short-term debt management, but what about their super?
Add value by focusing on the bigger picture when your customers may not be. For example, offering an annual financial health check can bridge the gap between sessions, and help clients keep their finances – and your services – front of mind.
- Work with your clients, in the way they want you to
In recent years, we’ve been seeing three types of customer emerge in terms of financial planning: those who want to do everything themselves, those who want to do it with the help of their adviser, and those who want their adviser to do it all for them. So, segment your customer base accordingly and look where you can add value.
If customers are already doing some of the work themselves, explore gaps in your service and product offering – perhaps they need a validation service, rather than full-on financial advice. Or, perhaps you can guide your customers in choosing a product which best suits their approach to financial management – a balanced super fund for those who prefer a hands-off approach versus DIY style investing for those who like to get more involved.
Every client and situation will be different, so your approach needs to mirror the scenario.
Good relationships take time and effort, but they are also very rewarding. So look at relationship building as a mutually beneficial long-term investment– an investment not only in the sustainability of your business, but also in your clients’ financial wellbeing.
