As an industry, it is our duty and responsibility to make clients understand the value of the services we offer.
And, according to recent research, this is not something we are doing well.
Data from Mortgage Choice’s inaugural Money Survey* found 8 out of 10 Australians do not have a relationship with a financial adviser and two thirds do not intend to seek financial advice this year because they are happy handling their own financial situation.
When asked: ‘are you planning on seeking financial advice in 2014’, 68.1% of respondents answered ‘no’.
Of that 68.1%, 48.8% said they would not seek financial advice because they are comfortable managing their own finances.
These statistics make one very clear point: the majority of Australians do not see benefit in seeing a financial adviser because they do not understand what we do.
As an industry, we have a responsibility to get the message out there and educate Australians on what we do and the benefits associated with seeking financial advice early on in life.
But how can we make sure Australians understand these benefits? Consider the following tips:
1. Make sure you have an internet presence. Today’s clients are doing their research online, especially Gen-X and Gen-Y. They are hungry for information, and you need to ensure your website contains information that a potential client would find useful in language they actually understand. Client case studies for example, can be a very powerful way to educate potential clients, especially if the client sees their own situation reflected within the case study and you have clearly explained how your advice was of benefit.
2. Ensure that everything you do is transparent. There is much mistrust in this industry, which ultimately comes back to the point that the majority of Australians don’t understand the process or value of financial advice. Common concerns for many potential clients are that they don’t know how much it will cost to get financial advice, what they are actually going to get for their money and who they can trust. It is for this reason that Mortgage Choice decided to create transparent pricing menus for initial and ongoing advice fees – to help remove mitigate any ‘fear, uncertainty and doubt’ by showing prospects and clients what they will get for their money.
3. Take the time to educate your clients and your referral partners. We all know how important it is to educate your clients but you may find your referral partners are in the same boat as your clients in that they don’t really understand what a financial adviser actually does.
Referral partners form a key component of any advisory business. If you want them to consistently provide good quality leads, you must make sure they understand how your services can benefit their clients and, in turn, their client relationships. Ask yourself the question – have you taken your referral partner through your advice process? There is no better way to educate them on what you can do for their clients.
The more we can highlight how much value we can add to our client’s situation, the better positioned we will be to grow our bottom line, build stronger more sustainable relationships with our customers, and help all Australians access the financial advice they deserve.
*About the survey
Market research company Nine Rewards was commissioned by Mortgage Choice to conduct the 2014 Money Survey. The online survey was conducted in late February 2014 and completed by 1,064 Australians from a range of financial backgrounds including first homeowner, next homeowner, homeowner and investor, investor only and not a mortgage holder.
Tania Milnes is General Manager of Mortgage Choice Financial Planning and dedicated to growing a new network of full service advice professionals with the backing and experience of the Mortgage Choice brand.
