The guides, created in partnership with adviser consultancy business threesixty, provide four vital steps to help advisers clearly present the benefits a client receives from using their services in a post-RDR world.
Graeme Bold, Director UK Retail RDR, said: “The changes demanded by RDR mean clients will be looking at their interactions with financial advisers in a new light. They’ll become more discerning in future when it comes to paying for financial advice. The key to giving clients a clear sense of receiving an added-value service is for an adviser to ensure their client value proposition is compelling and well articulated.
“As advisers know, most client satisfaction comes from the relationship they enjoy with their adviser. So it follows that successful businesses understand that their vision, goals and focus should be centred round relationships and advice – rather than just on price, products and performance. We hope that our toolkit will help advisers enrich their client value proposition and create robust businesses, not only to meet the challenges of RDR, but into the future.”
Four steps to a compelling client value proposition
Step 1: Segment client base
We provide guidance on how advisers can organise their client database into groups using pre-determined data such as life stage, future plans and aspirations, attitude to risk, social attitudes and net worth. Segmentation allows advisers to achieve a greater understanding of market opportunities and priorities as well as a clear sense of the direction of their business. It’ll allow them to focus their efforts on identifying, sustaining and developing client segments that generate the most profit for their business.
Step 2: Client servicing
Our guide examines how an adviser’s ‘promises’ form the foundation of a client relationship and how they need to appeal on an emotional level, backed by tangible evidence. It’ll help advisers create a plan to carefully set and manage client expectations over time against which they can deliver. The guide also covers how to create relationship ‘touch points’ to support these assurances, from face-to-face meetings, client review documents and performance reports to the company website, social media and newsletters.
Step 3: Pricing the proposition
We provide practical guidance for adviser firms seeking to price their service proposition for the first time. Adviser charging is considered in relation to the type of client, the range of advice and the firm’s business objectives. Our guide covers how an adviser can determine their fee levels; understanding and calculating their costs; identifying a profitable price; and benchmarking their proposition.
Step 4: Client engagement
Our guide provides tips on how to develop deeper client engagement, which in turn provides the route to greater profitability. It covers how to make a good first impression and articulate the service proposition clearly and concisely. This includes how to describe what an adviser’s business stands for; defining what the financial planning process looks like for clients; how to explain the outcomes the financial plan will deliver to the client; and how to explain the charging structure.