BUILD CLIENT LOYALTY

Transcription

1 BUILD CLIENT LOYALTY

2 BUILD CLIENT LOYALTY INTRODUCTION Program Description This program was designed to help identify the type and frequency of activities financial professionals should employ in their client communication strategy. The decision of how often and what to communicate depend on your clients profile. We ll provide guidelines to clearly define your ideal clients; who is ideal and why, and who is not ideal and why. Then we ll share strategies to leverage opportunities with current clients as well as prospective clients. If you haven t profiled your clients yet, a Client Segmentation Tool can be found at Keep in mind not all client contacts need to be completed by you, the financial professional. A specific person or staff member can be assigned to make contact. However, financial strategy related activities will need to be discussed with a financial professional who is appropriately licensed. Client Relationship Management There are three levels of communication you can have with clients: hits, touches and moments. These will dictate how and what you will be communicating with both clients and prospects. You can communicate hits and touches via the Internet, your web site and but you cannot use the Internet for moments ; it requires more intimate communication. You can however use the Internet to help organize moments such as organizing a client appreciation event or simply making a timely and sincere call about a milestone or life event in your client s life. TOP ADVISOR MARKETING. ALL RIGHTS RESERVED

3 HITS A hit is a less meaningful contact aimed at either building top of mind awareness, i.e. advertising, or communicating a required administrative task. This may include helping a client read their statement or sending a duplicate statement. TOUCHES A touch is more meaningful than a hit. It provides more value in contributing to the building of relationships. The value of a touch is dependent on your clients particular needs and expectations. What do they value and how much? A touch means going beyond basic client services with things such as newsletters, simple gestures of appreciation, seminars, personal greetings and so on. MOMENTS A moment has more significant meaning and is generally face-to-face. It s a sign to your client that you truly understand them and care about them. You appreciate their business and have made the effort to take your relationship to the next level. This could simply be sending flowers and a get-well soon note, taking clients to dinner, remembering their anniversary, making a donation to their favorite charity and most importantly showing you care by listening to them and understanding them. Basically clients want to be communicated with more frequently, more appropriately. They want more value in what you will be communicating as well. But how are you going to do this when you are already too busy. Having a plan of action and finding opportunities to leverage technology will be really helpful. UNDERSTANDING HITS, TOUCHES AND MOMENTS A hit ranges from self-promotion or advertising, i.e. k reminders, to client services including administrative issues, online account access and financial strategy implementation. It s not geared toward building relationships; it s geared towards sustaining the administrative side of the relationship. However, a hit can be turned into a touch or even a moment. An administrative inquiry or advertisement can be personalized to increase its value. Let s say a client makes an administrative inquiry and in discussing the matter you recognize that the client often has trouble reading and understanding their statements, as many people do. You could invite them to an Information Session that helps them and other clients learn how to read and better understand their statements. This turns an administrative inquiry into a touch and possibly a moment provided they re interested and show up for the Information Session. A touch is when you go beyond the regular expectations of the client-financial professional relationship by providing extra value to the relationship on a personal and professional level. An example of a touch might be ing select clients and reminding them of an upcoming TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 3

4 local gardening show because you know they like gardening. Another example of a touch is sending out a monthly newsletter. You can keep your clients aware of local events, important dates, interesting articles and more. This will be discussed in more detail later on. A moment is any direct communication, either face-to-face or voice-to-voice, with clients mostly and prospects occasionally. A moment would involve the financial professional going outside of their clients expectations to provide exceptional service, to show that you care personally for that client or show your appreciation for the clients business and or friendship. It also includes mastering meeting skills such as listening, discussing and understanding their wants, needs and concerns. Making appropriate recommendations show you care and truly understand their wants, needs and concerns demonstrating how well you listen, discuss issues and understand your client. If you hit someone too much it will hurt, if you reach out and touch someone enough, you will have a friend or an acquaintance at least, but if you have moments with someone you will create a strong bond that will be long-lasting provided you continue to communicate at this level. If they do become a client after hitting them often, you have started a relationship built on hitting not touching; this relationship is worth much less. Client Segmenting Criteria There are three areas to consider when profiling and segmenting clients. Review our Client Segmentation Tool which can be found at Client_Segmentation_Tool.pdf ASSETS (Net Worth) Most financial professionals are in business to maximize profitability, not at the expense of their integrity, but as a best practice in their pursuit of success. Consequently, defining your minimum required assets or net worth is important. Break down your asset or net worth requirements into three categories; A Client: B Client: Define an amount of assets or net worth that represents your most profitable client. (i.e. >$M) Define an acceptable range of assets or net worth that represents your B Client profile, a threshold that is profitable with the potential to be A Client profitable. X Client: A threshold that is below a reasonable unprofitability level. TOP ADVISOR MARKETING. ALL RIGHTS RESERVED

5 VALUES (Character) Consider the qualities you prefer in working with ideal clients. What is it about their values and character that make them ideal? In the Client Segmentation Tool we ve identified 5 values you may want to consider. They are: enjoyable, legacy minded, involved in the community, engaged in preparing for future and propensity to delegate. You can choose your own, but a maximum of five is recommended to keep it manageable. You ll be required to rate each of these on a scale of -5, being the not and 5 being very. We ve created a column to total these ratings so you can compare against one another. POTENTIAL As the title would suggest, potential is about specifying the opportunities that lie ahead with any given client. There are three specific criteria to evaluate when considering a client s potential:) are they or might they become a center of influence?, ) do they keep the company of others A clients?, and 3) are they on track to grow their assets and net worth in line with other A clients? It may be important to keep in mind that not all of your B clients will have shared their potential with you; consequently, you may need to work on your relationship with these B clients before you can rule them in or out of your A client status. Client Segmenting Descriptions AA Clients These are your very best clients. You may currently have one to ten. Your aim should be 5- AA Clients. They are ideal not simply because they have a high net worth, but because of the quality of the referrals they can provide. They are centers of influence and are willing to help you grow your business. They have many professionals handling their affairs, such as estate planners, lawyers, CPAs, etc. A Clients These clients are ideal also. They may be successful professionals, affluent retirees, and small business owners. Their net worth is within your preferred range. These are the clients you want to duplicate. If you could have a lot more clients, these are the ones you want. The great thing about your A clients is that they seem to run in the same circle as other A clients. Because of that, they can and will generate great referrals that turn out to be A clients as well. B Clients These clients have the potential to become A clients. They just aren t quite there yet. The objective with B clients is to promote them to A status by increasing the amount of business TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 5

6 you do with them. They have the potential to become A clients with more effort on your part. You ll need to build more credibility with them and establish that you can handle a larger portion of their financial situation. Your job is to uncover all the assets. This takes time and comes from establishing long-term relationships that can build on the highest levels of trust, integrity and service. If B clients are not promoted, they must be managed to consume a minimum amount of your time or set free. X Clients Your X clients are those who are not profitable, they don t generate enough income for you. These clients consume your time that could be spent attracting and servicing A and B clients. Z Clients A Z client is someone you don t like and don t get along with. One of the benefits of our business is that you can do business with the people you like. You don t need to do business with people who don t fit your value system or who just aren t enjoyable to work with. Let those people do business with other professionals. It s not worth the negative energy. Communication Tactics The Relationship Continuum There are three main criteria to consider when deciding how you will communicate and through which medium. First, you need to know what the message is. Then you must decide what type of impact you want to gain from sending out the message, a moment, touch or hit. Lastly you need to consider the characteristics of each medium available and which is the most efficient and effective means of distribution. Your available budget and resources will be important factors here. Make sure you have an idea of what they are before you start developing a plan. To give you a better understanding of the relationship between message, impact, efficiency and effectiveness take a look at the Relationship Continuum. THE RELATIONSHIP CONTINUUM CUSTOMER Simple message, low impact, highly efficient, low effectiveness ADVOCATE Personal message, high impact, less efficient, high effectiveness HITS TOUCHES MOMENTS TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 6

7 The continuum ranges from a hit, to a touch through to a moment. As you proceed from the left to the right the Relationship Value increases. By Relationship Value I mean the value of the relationship as the client sees it. The more moments you have with your clients the more they will value the relationship you have with them. The fewer moments you have with your clients the less they will value the relationship they have with you. In addition to having moments with clients, you can increase the value of the relationship by increasing the number of touches and the value of each touch. With hits, you can increase the value of the hit but you must be careful not to over hit, this can hurt you and your relationship. As you move along the continuum, the further to the left you are the less impact any improvements will have on the Relationship Value. As you proceed to the right, each component is weighted more heavily than the subsequent component to the left. But if you fail to provide adequate levels of hits and touches you will fall short, even if you have moments with your clients. Tactics by Impact - HITS HIT TACTICS Statement of Account DESCRIPTION/IDEAS Clients receive statements on a regular basis. Consider contacting them after their statement date to discuss their account. Phone and preferred. Product/Service Memos Newsletter Administrative Call/Memos Lunch & Learns Referral RequestLetter Letter/Article Blast Memos about important dates, new legislation, new solutions, new challenges, preferred solutions, new services, service updates and more. Use standard template so clients know what memos look like. is best form of this type of communication. A well written, attractively designed newsletter keeps you connected and reinforces your brand with your affluent clients and prospects. or send by regular mail. Service updates as needed. Phone and preferred. Brief seminars, webinars, workshops on a variety of topics, not necessarily financial related. Can be done in-house, online or at client location. Best if done with clients and prospects. A more personal and powerful event may be seen as a touch versus a hit. The more casual settings, the more at ease your audience will be. Libraries or other open areas work well. Small or confined areas like board rooms can be intimidating unfriendly. A letter articulating that you d like to receive referrals from clients, with whom and why. This letter should clearly articulate who you want to work with and how you prefer to be introduced. Timely articles, whether written by you or others, can be welcome value add-ons for your clients. Sent too frequently, clients will likely delete before they get a chance to see what they are about. The more you segment these mailings by relevance and timeliness, the better read-rate you will receive. Find a suitable segmentation application for relevant mailings TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 7

8 Be sure to have all materials approved by your carrier or broker/dealers compliance department prior to use. Tactics by Impact - TOUCHES TOUCH TACTICS Seasonal, Birthday or Anniversary Greeting/Gift/Call DESCRIPTION/IDEAS Send greetings via mail, phone or . Pick a favorite. Do not send to all events. Commit to what you and your team can sustain. Find a system that works and keeps it personal versus noticeably automated and impersonal. Annual Review Favorable Introduction Request Call Rotation Thank You Notes All Clients Event Pre-Meeting Package Make a commitment to annual reviews with your clients. Ensure clients know what to expect and follow a specific process that conveys value. Referrals play a significant role in how you grow your business. Mark Sheer at is a Referral Coach who can help you generate favorable introductions from your existing clients. Establish frequency of calls you wish to make to A vs B clients then out a plan in motion. Promise only what you and your team can deliver on. Timely hand-written notes are powerful and endearing. It shows clients that you think so highly of your relationship of him/her that you d take time out of your day to write a note. Larger scale client events might include th of July celebrations, BBQs and special speaking engagements. Invite clients, COIs and ask them to bring friends, family and colleagues. Visit for more information on creating client advocacy through events. Clients always like to know what to expect. Just like you d create an agenda for an important internal meeting, clients will be impressed if you provide the same level of pre-planning. As well, you can give them pre-work so they are better prepared to make the most of your meeting together. Tactics by Impact - MOMENTS MOMENT TACTICS DESCRIPTION/IDEAS Intimate Client Event One-on-One Event Personal Notes Chose opportunities to get to know your clients better by engaging in activities you and them have mutual interest in. Schedule annual or semi-annual dinner, coffee or other activity with clients. Be yourself. Don t talk about work or their account. A personal hand-written note to offer thanks or condolences is rare. Make it a habit and you re clients will remember you for how much you care. TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 8

9 Tactics by Impact - MOMENTS continued MOMENT TACTICS DESCRIPTION/IDEAS Client Dream Letter Engaged Listening Special Event: Greeting/Gift/Article Customizable Magazine Publication Draft a letter outlining your clients dreams and values so they can pass them along to their families. Practice your listening skills by asking better questions them probing for better answers. Each of your clients will experience milestones or life events. Sending a personal or appropriate greeting, gift* or article can be a powerful sentiment. Personalized with your information, this custom designed publication allows you to differentiate yourself by strengthening your most meaningful relationships all at a cost effective price. *Be sure to check your states gifting limits prior to presenting a client with a gift. COMMUNICATIONS PLAN BASED ON CLIENT SEGMENT Now that you have an idea of what an ideal client looks like, how to segment them, and how leverage improve your relationships, the next step is to define an action plan to implement the above mentioned communication tactics. Before you begin, make sure you have an idea of what resources you have to commit to this plan. If you re coming to the realization that this is integral and the required resources are irrelevant, please proceed. Otherwise, you ll want to know what time, expertise, technology and money is available. Client Communication Plan The following table is for you to create your own formula. Obviously you ll want to communicate more frequently and personally with AA and A clients. As discussed previously, too many HITS and TOUCHES can hurt. Focus on the right amount of HITS, TOUCHES and MOMENTS for your perfect client communication plan. TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 9

10 TACTIC FREQUENCY (times per year) RESOURCE HITS AA A B Statement of Account Product/Service Memos Newsletter Administrative Call/Memos Lunch & Learns Referral Request Letter Letter/Article Blast TOUCHES Seasonal, Birthday or Anniversary Greeting/ Gift/Call Annual Review Favorable Intro. Request Call Rotation Thank You Notes All Clients Event Pre-Meeting Package MOMENTS Intimate Client Event One-on-One Event Personal Notes Client Dream Letter Engaged Listening Special Event: Greeting/Gift/Article Customizable Magazine Publication TOP ADVISOR MARKETING. ALL RIGHTS RESERVED 9