In my last blog, I suggested we needed to think about whether your clients really understood what they are buying from your advice business.
With greater media scrutiny, more regulation and mounting competition, now is the time to hone the messages you share with clients.
If we keep it simple, your clients (current and prospective) are buying value.
I think we can tend to over-complicate our view on what the real value of advice is and I would like to share how we think about it at AMP, the Home of Financial Planning.
The value of your advice for your clients can be thought about in four ways:
1) The financial value. This comes from identifying ways to solve your clients’ problems and help them understand and reach their goals, whether through reducing debt , minimizing tax, increasing income or providing better protection. Your advice makes a practical and real financial difference to their lives.
2) The practical value. For your clients, taking care of their finances can be a big job and you remove some of the angst by getting them organised, taking care of everything and allowing them the time to focus on other things. Your advice makes their life simpler.
3) The emotional value. Whilst there will almost always be challenges for your clients to face, your advice gives them a sense of control, less worry and the relief that they’ve taken action. Your advice makes a difference to their emotional well-being.
4) The intrinsic value. You are an expert in financial management, qualified to help your clients to navigate the complexity, understand the rules and choose the best option. Only advice from a qualified financial planner can truly deliver that value.
If you get the messaging right and aligned to your target client segments, you are going to be in a far stronger position to manage through the change your business will face. These changes may include: attracting and retaining clients against strong competitors like the banks, accountants and industry funds, meeting Best Interest Duties for ‘Grandfathered clients’ or shifting the media conversation away from product sales to advice and service.
So next time someone asks what you do, or questions the value of financial advice, think about responding with an explanation that hits the mark.
Steve Davison is a judge on No More Practice and Head of Business Strategy at AMP.
