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Don’t Decay: Communicating with Clients

May 15, 2012 by fpapractice

Marketing does not usually come naturally to many financial advisors.  But, for what it’s worth, dentists are even less familiar with how to make marketing work.

In March, I received my reminder postcard for my semi-annual dental appointment.  If your dentist is like mine, you’re asked, at the end of your visit, to either schedule your next appointment and self-address a postcard, or simply check a box saying, “please call to schedule appointment.” This last time,  I selected the deferral option.  I would call to schedule.  It is now May and I still have not called.  I just keep moving the postcard around with a Post-It attached to it that says “Call Dentist.”  I know regular dental appointments are important.  I want my teeth cleaned and my insurance pay 100%. But for some reason, this mundane task falls to the bottom of my “To Do” list every day. Why?  Making this call is not top of mind.  But it easily could be!  If only my dentist took a proactive approach to his relationship marketing.

Suppose that my dentist’s goal became to make sure I have two cleanings per year to help me keep up my dental health. All he would have to do is set up an automated email reminder for me to call (or click) to schedule. And if I failed to call, I would continue to receive a defined stream of email follow-up reminders for a set number of times in the weeks that followed, possibly even reminding me that my current insurance covers to entire cost.  If I failed to respond again, I would receive a call.  My dentist could now focus more of his resources servicing the clients he already has instead of constantly seeking new patients.  By tightening up the communication with his existing clientele, he could gain an incremental 50% in revenue across 18 months as he shortened the time between visits from nine months to six.

You may argue he could make more if my teeth deteriorated faster, making his skill a necessary evil for me rather than a neutral or positive interaction.  However, with more frequent visits, he can deepen our relationship, reinforce his expertise, and hopefully leave me feeling satisfied because I am proactively managing my oral health. I would then happily send referrals his way.  When he takes a true proactive relationship marketing approach rather than “waiting for a call,” we both win.

How are you proactively communicating with your clients?  What is your flow?  If you do not yet have a defined system in place, consider making a flowchart to bring it all together in one place.   Start with the first appointment.  What is the next interaction you want your client to have with you?  Is it a meeting in 3 months?  A call in 6 months?  Is it reporting in on the first three tasks of the Action Plan?  Outline the key milestones for the year from which you need client participation.  Once you have these milestones defined as boxes on the flowchart, build out communication “if/then” statements before and after each event.  Match up emails and phone call triggers to each milestone.  From here, you can set up an email management system based on exactly what you need it to do.

Our clients count on us to strengthen their financial well being.  Don’t let reactive communications and waiting by the phone decay these valuable relationships.

Kristin Harad, CFP®
Marketing trainer for advisers  
www.kristinharad.com
San Francisco

Posted in Client Skills, Marketing | Leave a Comment »

Relating Kolbe and Trust

May 9, 2012 by fpapractice

The FPA Retreat 2012 conference in Scottsdale, Ariz., wrapped up this week—and a key take-away from the conference, the focus of which was “trust,” was that understanding your employees and clients helps you build trust with them. One method of understanding people that came up in two sessions I attended was through Kolbe assessments. These tests are used to discover people’s natural problem-solving instincts in order to draw out their innate talents.

Many planners already use the tool, or other testing instruments, to assess employee abilities or preferences or work style. Angie Herbers, a human capital expert for financial advisory firms, mentioned in her session on key steps to great employees that “Kolbe tests tell you how to communicate with each other; they are not meant to put your personality in a box.” Staff may be leery of company testing of personality traits but are more open to participating if they realize the purpose is to get at people’s motivations and comfort levels in an effort to facilitate a respectful and trusting work environment.

In a session at Retreat with Lewis Walker and Maria Forbes on how caregiving plays into holistic planning, Forbes, a team-performance expert, discussed the practical benefits of using Kolbe with clients. Particularly when there is a medical emergency and suddenly family care is needed, Kolbe can be used to test each family member’s innate abilities and organize duties accordingly, in what can otherwise be a chaotic and stressful situation. Forbes detailed the various roles family members often play when there is a serious medical event requiring long-term care—such as data gathering, planning, physical care—and how using tests like Kolbe can help place willing family members in the “right” roles to make the situation as manageable and smooth-going as possible.

So whether it be Kolbe or Myers Briggs or the Herrmann Brain Dominance Instrument or any other method for better understanding those around you, getting a clearer picture of clients and employees to ensure effective communication and build trust is a worthwhile investment.


Christina Nelson
Managing Editor
Journal of Financial Planning

Posted in Client Skills, HR/Staff | Leave a Comment »

3 Keys for Successful Client Appreciation Events

May 4, 2012 by fpapractice

Spring is in full swing and summer is just weeks away. One of the best ways to enjoy the warm weather seasons and show your clients you care is to offer client appreciation events. Client appreciation events are great ways to connect your clients with one another. Such events should be viewed as a business strategy—a set of business activities designed for a specific purpose. In this case, the specific purpose is to increase client retention and possibly cultivate new client relationships. Conversely, if you view your client appreciation events as merely social gatherings with no purpose in mind, that is exactly what you will get—a nice gathering from which nothing is necessarily gained.

After speaking to a number of my financial adviser clients, I have found that the following steps are keys to coordinating successful client appreciation events (indoors or out).

Follow Your Passion
You are more apt to enjoy promoting and attending the event if you are passionate about the type of activity you decide to host.

If you are passionate about boating, then host a dinner cruise. If you are passionate about the movies, get a permit to put up a screen in a local park. If you are passionate about fine wines, host an outdoor wine tasting event. Making the most of spring-like weather and offering events outside is a terrific way to change things up from the more traditional dinners at restaurants or cocktail parties and allows everyone to enjoy some fresh air.

Co-Host Your Event
If you wish to increase the number of prospects attending your event, while decreasing the cost, you will want to co-host your event with a center of influence— someone with whom you have something in common—namely your key clients!

What better way to cement your relationships with key clients than to be seen co-hosting a client appreciation event with their attorney or CPA? It also allows you to share the limelight in front of your co-host’s clients. This is a great way to get a passive endorsement to prospects.

Delegate Details
If you wish to have a successful client appreciation event, it is important to find a detailed-oriented associate adviser, assistant, friend or significant other who loves to plan. Let someone else take care of the details while you take care of spreading the word.

Following these simple guidelines will help you show your clients you value and respect the business they bring you, with hopes that by doing so your clients will value and respect your services even more.

If you have a favorite client appreciation event or have heard of a unique event, please share it with us using the comment section below. If you are interested in discussing in greater detail the best way to coordinate your own client appreciation event strategies, email me at dan@advisorsolutionsinc.com to schedule a free 30-minute coaching session. 

Daniel C. Finley
President
Advisor Solutions
St. Paul, Minn.

Posted in Marketing | Leave a Comment »

Becoming a “Best Place to Work”: Dimension #8

May 1, 2012 by fpapractice

Continuing our discussion of “best place to work” environments, let’s explore the next dimension of successful workplaces, as identified by the Gallup Organization. (For a look at the first seven dimensions, see my previous blog posts on this topic.) 

#8: The mission/purpose of my company makes me feel my job is important.
I think small businesses have an edge over larger corporations here. Because there aren’t as many “layers” of organizational structure through which messages must be filtered, the communication of the company’s mission, purpose, vision, values and goals can travel directly from the business owner’s mouth to the employees’ ears. Of course, there is a catch: The business owner actually needs to have a clearly articulated mission and vision.

Small business owners often fly by the seat of their pants, getting so caught up in the day-to-day responsibilities that they don’t take time out for business planning—a process that involves creating and clarifying your mission, purpose, vision and so on.

But let’s assume that you have developed these key business components and communicated them to your employees. That’s not a one-shot deal; regular reinforcement is necessary for employee morale and engagement. Keep in mind, however, that employees sometimes need to have “soak time”—the time to think about exactly how what they do contributes to the organization. The staff meeting offers a great opportunity for fulfilling this need.

Tips for Staff Meetings
For example:

  • Consider asking employees to share how they contributed to the purpose of the organization in the last month, week or day. The question helps employees really stop and think about their roles and responsibilities. And any time an employee can articulate his or her perception of the connection between a job and the organization’s purpose, the more engaged in that work the employee is likely to be.
  • Because your business’s purpose likely revolves around clients, why not share stories or feedback from clients on how working with your firm has positively impacted their lives? Letting employees hear these comments can be extremely powerful, as it can solidify the connection between the paperwork and other tasks your staff process every day and the client’s financial well-being.   

In addition, recognizing an employee for doing something extraordinary that contributes to the purpose of the organization is a way to reinforce your message. You can do it informally when you MBWA (manage by wandering around) or, you can formally recognize an employee in a staff meeting.

In the haste of getting all our tasks done, we can sometimes overlook these simple ideas. If that’s your tendency, consider adding a standing agenda item to your staff meeting so employees can contribute and better understand how important their roles are. It could be as simple as: “This week’s examples of living our mission and purpose!”

Joni Youngwirth
Managing Principal of Practice Management
Commonwealth Financial Network
Waltham, Mass.

Posted in HR/Staff | Leave a Comment »

Are You Losing $100,000 a Year?

April 24, 2012 by fpapractice

$100,000. This could be the amount you leave on the table from people who have an interest in your service, but are not yet ready to engage. You see, when people seeking financial planning assistance come to your website, and you do not offer a way for them to get to know you such as an ebook, a video training series, a free report or even just a newsletter sign-up—they can only fall into one of two buckets:  

 1.  I’m ready. These visitors have come with a purpose. They have a clear need for an adviser, have arrived through a search, a recommendation from a friend, or from viewing an article or marketing piece from you, and they are ready to take the next step. They will call you, email you, or submit a “request a consult” web form. We love these people; they are extremely valuable, and they are few in number.   

2.  I’m just browsing. These folks stumbled upon your site, took a temporary interest in looking for an adviser, clicked through a link without much consideration, and are probably on their lunch break or listening to a boring conference call while they surfed around your site. Perhaps they think, “Oh, I should get my financial act together” or “I really need to call one of these planners some day,” and the task moves to the bottom of their mental to-do list. The impetus to take action does not exist. More than likely, they just move onto their next task. Good-bye! 

But, when you offer a “freemium,” a piece of complementary content in exchange for an introduction, you open the door to an extremely valuable third group of prospects:  

3.  I could be ready … soon. These folks took action to look up an adviser or check out the referral a friend gave them, meaning they have a need for financial planning help. However, they are hesitant, suspicious, unsure of how you’d work with them, and generally untrusting of sales-y professionals who may make them feel uncomfortable. The majority of potential clients in the world today fall into this group. They would very willingly introduce themselves through a web form for a helpful, targeted, free workbook, but they won’t jump right in and pick up the phone to schedule a meeting. They want to build a relationship with you over time, and you can do this by setting up a structured communication system to do just that. 

Kick off your engagement by giving away your knowledge in exchange for contact information and follow up with more education. Then follow up and teach again. If you do not give them the opportunity to get to know you slowly through this kind of relationship marketing system, you will never even know who they are. They will fall into bucket No. 2 every time. And that’s client revenue you’ll never see.  

Imagine if you captured just two more clients per month because you offer an opportunity for the No. 3s to warm up. You let them read your emails, review your videos and understand who you are. If your average client is worth $4,000 per month, then you have added $8,000 per month or nearly $100,000 in revenue across one year by giving the latitude for a prospect to ease into the relationship. Sounds like it might be worth your time, right? 

 
Kristin Harad, CFP®
President
Next 10 Clients
San Francisco

Posted in Marketing | Leave a Comment »

5 Rules for Easy and Effective Video Production

April 20, 2012 by fpapractice

The use of video in business appears to be on an irreversible growth path. According to eMarketer.com, by 2015 76 percent of the Internet audience—roughly 200 million people—will be viewing video online on a regular basis. The explanation for this phenomenon is pretty straightforward: videos are more powerful than words, simply because people think visually.

When we read, our minds convert printed scribbles into visual images that we encode with emotion and remember. When information comes directly in the form of an image rather than words our minds can grasp more and make more connections because we do not have to engage in any word-image translation. Dr. James McQuivey of Forrester Research underscored this concept in his research, which unveiled that one-minute of video equals 1.8 million words. In a single frame, therefore, a video can deliver the same amount of information as several pages of text.

Although there is an abundance of easy-to-use and inexpensive technology for producing and uploading good-quality videos, many advisers complain that they do not have the necessary talent and experience to create their own videos. Here, I’d like to provide five basic rules that can help almost anyone produce quality videos.

1. Create a Script
Invest a good amount of time in creating a well-written script, as it provides the foundation for a great video. Your script should employ a crisp language void of industry jargon, clearly articulate your points in an easy-to-understand fashion, be engaging and, most importantly, end with a call to action.

In the majority of the instances, the problem-solution format is the most suitable to follow:

  • Articulate the problem
  • Explain how you can provide a solution or alleviate the client’s pain
  • Provide a call-to-action, such as call-in, email, sign-up, etc.

2. Keep It Short
Although the eMarketer.com research confirms that videos are becoming a favorite means of communication, let’s not forget that people have short attention spans. If we do not engage our audiences within the first 20-30 seconds, chances are we’ve lost them. Video content must be concise, relevant and engaging. Although a three- to five-minute video can pack the same information you’d deliver through a white paper, I’d suggest keeping your video within a three-minute range maximum. If you have a lot more to share, create a series of short videos to ensure viewer engagement.

3. Capture Clear Audio
Poor audio is one of the key reasons why viewers stop watching videos. Think about your movie-goer experiences. Most often, poor audio is the key characteristic of a low-budget production. Although web audiences are more forgiving than theater or TV ones, always ensure that your video’s audio is clear. An affordable wireless microphone system that can be paired up with your camcorder can be purchased for around $100. However, more traditional and decent quality handheld or clip-on microphones can be found for about $20.

4. Let There Be Light
Good lighting for a video is just as important as clear audio. Often, your camcorder light is not powerful enough to achieve good image clarity. In that case, use auxiliary lights you may have on hand in your office, such as halogen desktop lamps. If additional lights are not available, you may want to identify a major light source like the natural light coming through a window. In that case, ensure that your subject faces the window (the window will be behind the camera) to enhance the natural light effect and prevent silhouetting effects.

5. Edit for Success
Shooting a video and posting it directly on YouTube, especially when you are pressed for time, is a great temptation. However, we always recommend to our clients that their videos undergo some post-production review to ensure quality. Today, the majority of commercial computers come with the Windows Movie Maker program or iMovie for Macs. These programs are sophisticated enough to help improve your video production. If you do not have access to these programs, there are free options available like Lightworks or JayCut. This software will allow you to display your firm’s logo throughout the length of the video and also add a text box where your website URL and your contact info can be displayed. 

Have you had any experience with video production? Feel free to post questions, comments or share additional video-making tips.

Claudio Pannunzio
President
i-Impact Group Inc.
Greenwich, Conn.

 

 

Editor’s note: For additional video tips, see Christina Nelson’s article, “Expand Your Practice’s Web Appeal With Video,” from the March/April issue of FPA’s Practice Management Solutions magazine, as well as Kristin Harad’s recent blog post, “3 Video Marketing Myths Busted!”

Posted in Marketing, Technology | Leave a Comment »

Becoming a “Best Place to Work”: Dimensions #6 and #7

April 17, 2012 by fpapractice

Continuing our monthly discussion of “best place to work” environments, let’s explore two more dimensions of successful workplaces, as identified by the Gallup Organization. (For information on the first five dimensions, see my earlier posts on this subject.)

#6: There is someone at work who encourages my development.
I frequently write about the topic of employee growth and development in small practices. The obvious challenge for small businesses is that there’s no “corporate ladder” to climb. Advisers are sometimes apologetic to employees about that fact. But let’s consider a different perspective: because there is no ladder, staff members work with the CEO of the organization from the get-go—a situation that employees in large organizations crave. Furthermore, when there is an opportunity to formally change positions, the odds for a qualified and motivated employee to evolve into a more sophisticated role are far more favorable than in corporate America, where job ads are placed internally and externally to find potential candidates for open positions.

The bottom line is, in a small business environment, there needs to be a conversation between the manager (the adviser) and the employee about what “development” means to each of them. Learning a new software application may be what one employee has in mind, while transitioning to an adviser role is another’s goal. If you avoid talking to staff members about their definition of career development, you’re missing a great opportunity.

The easiest, most efficient way to make sure this discussion happens is to ask a question about career development as part of the employee’s performance review. Of course, this means you need to conduct formal, written reviews regularly, preferably twice per year.

(Editor’s note: Look for a great article by Joni in the forthcoming May/June issue of FPA’s Practice Management Solutions magazine on how to achieve career development in a small practice.)

#7: At work, my opinions seem to count.
Do you practice participative management? I like BusinessDictionary.com’s definition: “Type of management in which employees at all levels are encouraged to contribute ideas toward identifying and setting organizational goals, problem-solving and other decisions that may directly affect them.”

A key component of the definition is the phrase “that may directly affect them.” Sometimes, advisers underuse or overuse participative management. On one hand, you may make poor decisions if employees who are intimately involved with daily work aren’t involved in influencing daily processes. On the other hand, involving employees in every decision isn’t appropriate. For some decisions, the business owner neither wants nor needs employee input.

The best practice is to invite participation when you need it and will listen to input. This motivates employees and tells them that their opinions do count in the organization.

Joni Youngwirth
Managing Principal of Practice Management
Commonwealth Financial Network
Waltham, Mass.

Posted in HR/Staff, Operations | 1 Comment »

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