Archive for the ‘Referrals’ Category

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Getting it All in Perspective – Sales

May 16th, 2012

It is all about your intention.

In the Experience Economy your sales process is not about ‘closing’ or ‘doing business’. Instead, consider that what you do is guide a client through a process of commitment.

If you believe that actions speak louder than words then you have to accept your client commitment process will leave a lasting and indelible imprint on the overall impression you make on a client.

What impression do your actions make?

Hint: just because you ‘closed’ someone does not mean that you made the right impression.

Posted in Blog, Experience, Good Marketing, Prospecting, Referrals |

Advisor Interview – Heidi Helmeke

November 23rd, 2011

The day I met Heidi, I was working in Minneapolis, and my client had arranged a personal meeting with some advisors. I was told ahead of time that they have a great business, and that I would enjoy meeting them.

Charles (Chuck) Blossom and Heidi Helmeke are fantastic financial advisors, and the entire team at Prestige Wealth Management come together to offer a fantastic client experience.

They take a complete and comprehensive approach to their financial planning process, but they are as passionate about their client relationship which is what sets them apart.

As Heidi put it “For sure we have a complete financial planning process, and every client we have understands it, so yes we do a great job of caring for them from a strictly technical perspective – but we put a lot of effort into ensuring that we create a sense of family or belonging here. We want people to look forward to seeing us; and to having their meeting – those are two separate things”

In addition to the photo albums of client events, Prestige Wealth Management also hosts several impressive client events including a Holiday event where they book an entire movie theatre, and for Halloween they delivered pumpkins to over 20 houses that had grand kids. “People love it, and our movie day for many of our clients has become one of their family traditions – which is really nice for us.”

Name: Heidi J. Helmeke

Family: Married to Rob Helmeke and have two children Garrett age 7 and Brooke age 5

Current Position: Senior Vice President, Prestige Wealth Management

Years in Business/Brief History: I have been in the securities business for approximately 20 years originally to start up an investment program within the bank where I was acting vice president.  I later moved into the independent RIA channel with Prestige Wealth Management 12 years ago.

Staff: Prestige Wealth Management has three support staff, an operations director and the President of Prestige Wealth Management who is the other Advisor in the office.

Assets under Management: 51,000,000 and growing steadily.

DMW: How did you get into this line of work?

HJH: My path into this line of work started at age 16 when I was hired as a bank teller.  My work experience in the financial arena continued through out my pre-dental scholars’ program years at Marquette University.  After 2 ½ years I realized that my financial burden for undergraduate and then Dental school would leave me in debt until I was at least 40 years old even with a dentist’s income.  That was not what I wanted out of life and changed my degree to psychology in order to be able to finish in 4 years.  I had no idea at the time how valuable that degree would be for me in the future.  I took the first job out of college that would pay me enough so I would not need to move home.  That meant I would be working in finance since that is where a majority of work experience was concentrated.  After making my way up the banking ranks into a vice president I was asked to start up an investment department.  In doing so I was able to see that I wanted to explore this avenue that was very new to me.  Once I started working with clients I realized I needed more information to be able to assist them in their financial decisions and therefore obtained my certified financial planning certificate.

DMW: To what do you most attribute your success?

HJH: My dad.  He not only had a strong farm work ethic that he passed on to me he was also an incredibly smart man who did not go past the 6th grade.  He could add and subtract in his head faster than I could with a calculation however because of his lack of education he never had confidence in his ability to understand finance.  He started his own successful business and was able to provide for our family however he died without ever writing a check.  I continually see “dad” every day meeting with clients whether they are scientists, engineers, executives, lineman, or school teachers.  It doesn’t matter what, if any, education they have the complexity of the financial world creates a need for me to bring confidence and education to their world.

DMW: What would you say are the five key elements for starting and running a successful financial planning practice?

HJH:

  1. Health – Both mental and physical
  2. A Strong family relationship
  3. Passion for your clients
  4. Establish a business plan that will withstand the ups and downs of our industry similar to the plans you do for clients.
  5. Continual personal growth – never stop learning

DMW: If you spoke to a squeaky new fa on his or her first day……

HJH: Get to know your client one conversation at a time.

DMW: I really like that – one conversation at a time – it sort of suggests that you should be patient. Seek to understand your clients. Know them intimately.

DMW:  What keeps you interested about this career?

HJH: The desire to assist my “business” family with every new challenge and opportunity that occurs daily.

DMW: People’s lives are always changing – I always think about me, my own financial life and how semi-complicated it is, financially speaking. Granted I run a business, but most of my friends don’t and their lives are financially complicated too – mortgages, investments, retirement, promotions, layoffs – everyone is always in flux.

HJH: Keep connected with your clients – you have to check in, that is how you find your place to help.

DMW:  Tell me about a time when you had to overcome difficult times in your practice, and what you did to get through it.

HJH: In looking back at some of the most difficult times in my practice they have always happened when my focus strayed away from the client toward outside influences that I could not control such as the markets, economy, political environment and competition.

The first step was to recognize what had occurred.  The second step would involve revisiting my goals and reasons for being in this business. Finally I would take action to make the client my primary focus again using various top of mind tools or simply mentally shutting the door on outside influences.  The future will always involve difficult times however experience has proven to me that the time involve in recognition and resolution of the challenge keeps shortening.

DMW:  Why do you think you do so well – and can other FA’ duplicate your success by embracing your philosophy?

HJH:  I think I do so well because for me this is not a job or even a career.  It is my passion and purpose.  If a new FA truly cares about your clients above all else the success will follow.

DMW:  What kind of culture exists in your organization?

HJH:  Our organization strives to create a feeling of family both internally and externally.  This is accomplished by establishing relationships that involve more than finances.

DMW: What 3 pieces of advice would you give to an FA who wants to realize…….

HJH:

  1. Find out if you have the internal desire for this business beyond the external gains of money, success, education etc…
  2. If #1 is true then cultivate that desire by enhancing your client relationships and in turn their experience with your firm.  (If not be honest with yourself and either accept you position in the field or do what you are passionate about)
  3. Surround yourself with positive influences both personally and in your business.

DMW: How do you go about marketing your business?  What has been your most successful form of marketing?

HJH: We market through introductions, workshops and client events.  Our most successful marketing is small client events where they bring a guest to introduce to our firm.

DMW:  Excluding yours, what company or business do you admire the most?

HJH:  I would say solely based on recent experiences as a consumer I would say Starbucks and Ann Taylor.

DMW: Yeah, I have a nice Ann Taylor pantsuit … wait did I say that out loud?

Bonus Round

DMW: Do you have any idea what Poutine is, and do you think it should be legally recognized?

HJH: No idea, so I am not sure.

DMW: Did you hear that Governor Rick Perry signed a pledge against Poutine?

HJH: (laughing) No I did not know that.

DMW: Well he did, or at least he is pretty sure he did.

HJH: Well … Is that a bad thing?

DMW: Depends I guess on what your feelings are about complex carbohydrates. I don’t want to get all political on you, but the way I see it all carbohydrates are created equal.

DMW: Ever been to Canada?

HJH: No.

DMW: What? Are you kidding me? I thought for sure … you live in Minnesota?!

HJH: I know, but no, I have never gone.

DMW: Well there goes my next question … So, what’s your favorite part… of Canada?

HJH: I have a lot of dual citizenship clients, so I am going to say “wherever they are from, and wherever you are.”

DMW: Oh that’s sweet – and that’s going in the interview.

 

DMW: Okay where would you go if you went anywhere in Canada?

HJH: Honestly … I probably wouldn’t go.

DMW: What? We are your largest trading partner … we’re right here, we like you guys, and we look like you. Is it our liberal opinions and radicalized support for Poutine?

Posted in Blog, Experience, Good Marketing, Referrals |

Anchors Away

June 20th, 2011

Some things you buy because they are cheap, and you are not emotionally invested. Deodorant. Toothpaste. Tires. RAM for your computer. If you sell these sorts of things – then you are going to compete on either price or service. “Buy 3 tubes of toothpaste, get the 4th for free”, or service – “We can get you in, get your tires changed, and back on the road in less than an hour!”

However, if what you sell has an emotional element to it – that is to say you don’t compete on price but rather value, then you will want to consider some kind of post investment process to anchor the relationship.

The client becomes an advocate.

In previous blogs I have mentioned that I love Starwood Hotels. Well you would too if they did for you what they do for me. Every single time I check in to a Starwood the following events happen – guaranteed.

1. I skip the line and get my own special counter …
2. My folio is already out and waiting at the desk – like they are expecting me, and …
3. They give me a gift (bonus points, movies, or room service) and …
4. I get early check in to my …
5. Complimentary room upgrade which are often out of this world, where I drop off my bags before going to …
6. The club lounge to think about what I will do with …
7. The bonus points I earn on each stay because I am a Platinum member – this year it was Whistler for a week, compliments of Starwood.

When I stay at a hotel that isn’t a Starwood I’m always a little disappointed because while its nice, its not my place. Last week I stayed at The Four Seasons in Boston but would have preferred The Liberty Hotel (A Starwood Property), and then The Ritz Carlton in Tyson’s Corner VA but I would have preferred The Westin next door. When staying at a Starwood means I have to walk a little, or get up a little earlier these routine bonuses are enough to ensure that I don’t regret it.

After Boston and D.C. I was in Pittsburgh, I stayed at The Westin although my meeting was at The Omni, which is a very lovely place but it doesn’t mean anything to me. I don’t feel especially connected to them – there is no community, no sense of membership.


Keep your eye on the prize.

Before heading out last week for this mini tour (Boston, D.C., Pittsburgh) I received a cool gift in the mail from my eyewear provider. The gift was a box of fine teas, various selections etc. and a nice card thanking me for the confidence and trusting them with looking after my new glasses.

A few months ago I picked up new specs and of course I have had a lot of people compliment me – they are new, my face looks different. But pretty soon nobody is going to ask comment about them – they won’t be new anymore. The novelty will fade.

The frames I bought were really expensive but I am certain now that when I buy my second pair of frames (I like to have a few pair at the same time for variety) I will get them from IRIS in my neighborhood. The gift they sent was a really nice touch and it will ensure that they remain top of my mind when I go looking.

What is your process?

When someone buys into you or your business what do you do? Do you let them leave? Just walk out and take your chances that they will come back or do you make the experience memorable?

A card? A book? A follow up call when its appropriate? A client event? A special sale where you invite your preferred clients to come in after hours, or on a Sunday and shop at a special price?

Its pretty hard to stand out. Its pretty hard to compete on price when eBay has changed the way we shop, so I will just remind you of this old saying compliments of my friend Sam in New York City.

Similarities don’t sell. Differences do.

Posted in Blog, Client Service, Experience, Good Ideas, Good Marketing, Referrals |

Whatever, Whenever – W Hotel San Diego

June 11th, 2011

You may like to read this blog if you missed my last post about amazing customer service at W Hotels.

I was standing in The Marriott Marina Hotel in downtown San Diego.

This hotel is right beside the San Diego Convention center, I had flown out to speak about increasing sales by improving the client experience at a conference hosted by HD Vest.

Coincidentally I had sat beside a National Sales Manager for a golf supply store from Toronto to Phoenix.

Sometimes you get lucky with your seat mate, and this was a really good ride. He and I shared our stories and our opinions about better business development, client loyalty, increasing sales, ideal clients and of course through all of these efforts – distancing yourself from your competition.

We both agreed that a successful sales career is pretty simple – it helps when you have a good product, but at the end of the day the products are usually secondary to the distribution model, and the client experience that the client receives at the point of sale – either the salesperson, the front desk agent, or the sales rep in the field.

Can you press my suit?

It was 1230 PM, and the front desk person told me that it would be impossible to have my suit pressed, and returned to me the same day, and it might not get back before I needed it in the morning.

There wasn’t a lot of interest coming from the other side of the desk as far as helping me out, so I finished checking in and went to the concierge – I thought that for sure this person would point me in the right direction, help me, save me, at the very least have a suggestion.

No such luck, the concierge confirmed that there is no onsite dry cleaning service, and after some discussion she pointed out on a map where a dry cleaning store is. Getting my suit taken care of was my problem. So you know, if I were at a little satellite hotel by an airport, or if it were 10PM I wouldn’t expect to get my suit pressed but this wasn’t the case. It was the middle of the day.

I couldn’t believe it. First of all not having on site dry cleaning at this particular hotel is just dumb. That I was left to solve my own problem was disappointing, and a real missed opportunity in my opinion to win me over and anchor this relationship.

Similarities don’t sell – Differences do.

I needed help. I needed this situation solved. At this point all I had was a map to a dry cleaning store and it was still in doubt as to whether or not they would be able to help me in time.

In the elevator I figured out what to do, and I relaxed. I knew it was all going to work out.

I went up to my room, put my bag down, and looked up the number for The W Hotel in San Diego. I spoke with Alejandra and explained my situation, and I asked her if she had on site dry cleaning.

“Of course” she said “bring your suit over and ask for me, I’ll have it taken care of right away.”

Now it gets funny … well funny in a tragic sort of way, like watching someone walk into a parking meter (I’ve done it).

I walk back down to the concierge, suit over my arm, and ask for directions to The W Hotel, which is about a 10 minute walk away. Nobody batted an eye. It must happen all the time – people asking them where other hotels are?

When I went to the W, they were waiting, took my suit and I went upstairs to The Beach Bar and had lunch, and had a great conversation with Chris, who was the bartender.

The story ends really nice – I loved my lunch, enjoyed talking hockey with Chris who told me fun stories about some of the hockey players who have been guests, and of course The W pressed my suit and didn’t charge me.

Anticipate your client’s needs. Little things mean a lot.

As I have said probably a million times – we all get paid to do one thing, but we earn the money doing something else that is typically not in our job description.

I think I paid $280 to sleep at The Marriott that night … the one beside the 2.6 million square feet of convention centre next door (where people probably wear suits).

All the Marriott had to say was “leave your suit with me, I’ll take care of it.” There are probably all kinds of dry cleaning shops in down town San Diego that would handle my suit and bring it back within a couple of hours. I would have happily paid a premium for it – no problem. In fact, there is probably a dry cleaner that would love to set up shot inside the hotel itself, pay rent and take care of all the suit wearing Marriott guests who would otherwise have to trek through the pretty people of San Diego to The W Hotel to get their suit done.

Think about your own business.

What do you get paid to do?

Now what do you do that nobody expects you to do?

How easy is it?

How affordable is it?

How do you make sure it happens all the time?

How can you make this kind of thinking part of your corporate culture?

We are ramping up to a nice long summer, a perfect time to sit down, kick your own tires, and look for some easy opportunities to improve your client experience.

Bonus Story!

The parking meter … I was in Montreal, I had just spoken at a big conference and was walking back to my hotel, The W in Montreal. Someone from the audience had seen me and chased me down. They were telling me how much they enjoyed my session and wanted to know about hiring me for a meeting in Australia. Just as he said “I mean this, I have been in the business for 36 years and I have never heard a speaker like you – you are amazing.” On cue – I walk right into a parking meter, and fall over gasping for breath.

The look on his face, in retrospect, was hysterical.

Never did hear about that meeting in Australia …

Posted in Blog, Client Service, Good Ideas, Good Marketing, Referrals |

Cost Vs. Experience – Cycling

April 15th, 2011

I stood on my balcony looking out at one of the first days of dry pavement in Ottawa, anticipating the arrival of my new bike.  I had ordered it a few weeks ago hoping it would arrive as quickly as possible. I had tracked it, and knew it would arrive that day.

When I told Dennis that I had bought my bike online, he was instantly skeptical. You may have read his blog My New Bike, he has strong opinions on buying local. Then again, I have strong opinions on saving money.

Fear of loss is greater than hope for potential gain

My friend Tim had found a group of guys who were selling bikes; bikes with a story. Fixed Gear Bikes by Solé (www.solebicycles.com) was started by two college guys who couldn’t figure out why a bike was so expensive. So they “trekked the globe” to create a well built, fun to ride, affordable bike.

They came up with a bike that cost $310 (plus shipping), and included some very good components. Depending on where I lived in the USA they said it could be here in 2-10 days. I live in Canada, so I added a few days to my estimate. I knew I could get a similar bike at a local bike store, and would have it faster, but I also knew it would cost me a little extra, and at the time, I wanted to save the few bucks.

Plus – this story excites me. Young entrepreneurs, in a dorm room dream up a company, raise capital and get if off the ground.  I love it. As a company they are trying to stay as green as possible, their website is fun and easy to navigate, and the bikes are cool looking with great pictures and the promise is great – I wanted to get that bike, and build it with the one tool they said I would need.

Dennis has since rode his bike 5 times … and won’t shut up about it

There were problems with shipping. I had to pay extra for shipping to Canada. It took time for the payment to go through, and for the shipping process to start.

My bike finally arrived at 4:59pm and I was super excited. The first thing I noticed was there were holes in the box. I showed the delivery person, and signed for a broken box.

The box wasn’t the only problem. The pedal arm was through the spokes, and had bent one. This had also scraped the paint pretty badly.  I couldn’t attach one pedal because the hole was too small to catch the thread. The other went on fine. I tried to put the front tire on, but the slot on one side wouldn’t accept the bolt. Again, it was too small. Lastly, as I tried to attach the seat, the seat clamp was missing, and the stem wouldn’t fit into the slide… too small.

Later I noticed that the logo was glued on crooked.

I was bummed out, and this was before I had to confess it all in this blog and post it.

What do I do?

At this point, all I want to do is bicycle. Even if they do have a return process, and don’t charge me for the extra shipping costs, I still will have to wait at least two more weeks to even get on the trail. I wasn’t even able to get a hold of anyone there. I had to email, and wait (no response this evening). Had I gone to Tall Tree like Dennis suggested, I would have been on some of those rides with Dennis.

At this point I wish I had given the extra hundred dollars and had someone local that would just fix my bike. More importantly, would have made sure I left with a bike that wasn’t broken in the first place.

Success comes from constant refinement

We are always working to improve here – all the time. I like that SOLE just sells bikes, now work on making it the best experience possible.

SOLE needs tighten up a few things, and build a little community.

They need to pack a little more carefully – come up with a cheap solution to keep the bike from banging around. You can’t allow a bike to show up with a broken wheel, or seat parts missing, this eliminated the crucial “instant” aspect out of “instant gratification.”

They need to get a better handle on quality control so that bikes show up with all the parts, and so that the logo of their company is at least stuck on straight.

They should create community with their clients by allowing us a place to post photos of our bikes around the world.  I’d like to hear about, and hear from other SOLE bike owners – a community.

And finally … they should send me a new bike. Let me have it. Let me keep the other one too. Then this story would truly have an amazing ending.

Now what I need to figure out is whether or not I can write this off…

 

Posted in Blog, Client Service, Experience, Good Marketing, Referrals |

Is there anything better than an upgrade?

March 3rd, 2011

In a previous blog I wrote about an observation I have had which is that businesses place to much of an emphasis on the importance of prospecting, versus growing the businesses through referrals that come as a result of creating an exceptional client experience for your existing clients.

Specifically I feel that it is completely inappropriate for a business to give products and gifts away to strangers while ignoring an existing client. My bank was giving anyone who would open a new account an iPod.  They were asking me to subsidize the cost of the iPods through my service fees on various accounts, and mortgages.

How about your mobile telephone provider? Mobile telephone companies are possibly the only business that has managed to find a way to both ‘suck’ and ‘blow’ at the exact same time.

I feel like a hostage, certainly not a valued client. They constantly roll out new offers, more competitive fees but if I want the same deal as a stranger (read – someone who isn’t paying them already) then I have to renew my contract.

In other words – “If you want the deal that will help you save a little money, you have to agree to pay us for a little longer, which means you won’t actually save any more money. Thanks for your business.”

I won’t belabor the point – I’ll just point out that every business would get a lot more new clients and good will if they gave me an iPod and said “thanks for being our client.”

Imagine if my mobile phone provider sent me a letter saying “we are going to be charging you less from here on in because we have brought in more competitive fees. This does not in any way effect the term of our agreement. You are a valued client, and we want you to remain with us for years to come.”

An upgrade says “we get it.”

In an effort to get more clients, businesses offer all kinds of incentives to bring more bodies in the door. Often this involves price discounts or some kind of “2 for 1” offer.

We all have businesses that we like to spend our money at – I love to spend my money in my neighborhood and I rally around local entrepreneurs who are doing what they can to make it on their own, I have written about it.

What I like about the small independent business experience is that you know that you matter to the owner, and I often get a hand shake or personal attention which adds to the experience, it makes me feel important, it makes me feel like a preferred client, and it keeps me coming back.

We all want to be recognized and belong to some sort of community. We all want a place to go where everybody knows our shame, oops, I mean ‘name.’

When you get upgraded, the business is telling you “we get it”, “we recognize you”, “we appreciate you” and finally “we really want you to keep coming back.”

From the consumers point of view – you get more value for your dollar. You get the product, and a reminder that you matter.

“Best Clients” want to help you, they want to bring their friends in and introduce them.

A best client isn’t necessarily the client who pays you the most, or spends the most in your store. A best client is often the person who appreciates all that you do. Your best clients appreciate being part of your story, and they appreciate how you treat them.

Best clients are the cheapest form of advertising.

In the Financial Services Industry there is a 47%* chance that your next client will come to you via referral so investing into your business, specifically into your client experience is critical to your success. That is, if you want things to constantly get easier and more enjoyable.

How can you upgrade your client service experience?

Here is a short list of suggestions.

1.       Treat the people who work for you really nicely. They are ambassadors of you, and what you do. If your staff is happy, your clients will feel it. People want to do business with kind, decent people.

2.       Work with an ideal client profile and communicate this to your clients- let them know that you don’t just work with anyone. You are special, and by association so are they.

3.       Prospects check in, clients we wait for. Have a staff member wait for your clients in the lobby. You know when the appointment is, so you should be able to guess when they will arrive. Think about how much better that is versus having your clients check in with the receptionist.

4.       Meet in the boardroom and not the office and make sure that the room is set up nicely for the visit with refreshments, glassware, china, and have all your materials ready and prepared.

5.       Spend the appropriate amount of time with the right clients based on revenue to your business.

6.       Always give your client a gift. It doesn’t have to cost a lot, but good business is about manners as much as it is about delivering services. I give my clients books, or CDs of music that I like that I think they might like too.

7.       Keep your clients on a service schedule, and communicate it to them so that they know what to expect next.

8.       Focus on the small details. As a speaker, one thing that I do (all the time) is that I check in with my client during my travel day, just to let them know where I am at, and that there are no delays etc. I then email them or call them the moment I am at the hotel, and I confirm that I know when my speaking time is, and I tell them that I will be there early to see the room etc. I figure that they probably have a list of things to check in on, and I am probably one of those items – so I take one item off that list for them. May not seem like much, but it’s the first thing the client says to me after good morning “and thank you for your messages yesterday.” Its one of my secrets – feel free to have it.

9.       Don’t feel like you always have to make your lists 10, sometimes 9 is fine.

Let me take this moment to thank you for reading my blog. I really like being a speaker, I like being a coach, and I work as hard as I can to make my blogs something worth reading. So thanks. I like to think I’m getting better all the time.

*SpectremGroup, 2009 Ultra High Net Worth Report

Posted in Blog, Good Marketing, Prospecting, Referrals |

Trust – Once You Have Trust, Everything Else Gets Easy

January 31st, 2011

When your clients trust you they will do anything you tell them to do.

There isn’t much else to say about that – it’s a simple fact. If you are an investor, and you understand what your financial advisor is saying, and you understand what their process is, and how their process is implemented you will likely remain a client even if the market corrects significantly.

When you trust your advisor and believe in their process you are more likely to reinvest when the market is on sale, considerably increasing the chance that over time you and your advisor will be very successful – assuming you measure this by profit made in the market.

If you don’t trust your advisor, you may not have bought Starbucks at $7/share a little while ago. I know, I have mentioned that in two blogs now (blog) but at $33/share the coffee actually tastes better.

This is why trust, in an industry that sells invisible products is so critically important – because without it, you’re over. Survey after survey tell us that successful advisors are trusted by their clients, and we know that trust is made up of 3 main components – Communication. Clarity. Consistency. That’s it.

Communication. Clarity. Consistency.

Here are some stats that you should consider that support just how important it is to establish systems and procedures that help to foster trust.

A 2007 survey by Alliance Bernstein of 13,000 investors suggests that over 90% of respondents indicated that their desire to work with their advisor was directly related to:

1.       How clearly the client understood the advisors process.

2.       How frequently the advisor checks in.

3.       The advisors ability to explain complex financial concepts clearly.

Bottom line is it’s really important that your clients know what you think, how you do your job, and finally for you to check in all the time to make sure everyone is on the same page.

A 2009 survey by SpectremGroup called “The Ultra High Net Worth Report” suggests that 47% of those surveyed indicated that it was a referral from a friend that ultimately helped them make their decision.

Finally a 2008 survey of 900 high net worth individuals conducted by Janus Labs/Russ Alan Prince revealed some amazing figures. When clients trust their advisor they will:

1.       Invest 8.7% more in assets.

2.       Provide four times as many referrals.

3.       Take away fewer assets.

4.       More likely to consolidate with the advisor they trust.

5.       Request non-traditional services.

All of these stats point to the importance of having a communication plan in place that is designed to explain your process, and manage your clients’ expectations – no alarms and no surprises. Your clients need to know what is expected of them in addition to what they should expect from you.

Communication – do your clients understand what you are talking to them about? Do your clients clearly understand your process, and your thoughts on complex financial matters, or do your clients feel like they are speaking to an economics professor in a class they never signed up for?

Clarity – do your clients understand what you actually do – in other words, what is a financial advisor. You might say “someone who buys and sells securities on behalf of an investor or investors – an advisor provides stewardship and oversight to a persons portfolio. They manage a person, or a family’s wealth.” That’s all fine, if this is what you do, and if this is what you want your clients to understand you do.

But is this what you do? More specifically … is this all you do? The description written above describes what every advisor says they are – but is this what your clients are looking for? Is this definition of an advisor going to fire up your clients to refer you business? I have to ask … Is this what you want to be?

Is this your value? Dennis gave me $100,000.00 and I earned him 12.2%, which is more than 9.6% (which is considered a pretty good return) and therefore I am 2.6% better than average, and over time I guess that is worth a lot of money.

There is a whole other question that needs to be asked … If in fact this was how I measured your value, by how much you beat the benchmark, then do you really want to work with me anyway? You need your clients to trust the process, not constantly measure your “value” by returns.

Consistency – do you follow a process that guarantees the experience your client receives – is it always the same? Same isn’t bad. Same is consistent – and consistent is safe.

Trust grows.

Rarely do we ever trust anyone or anything instantly unless the situation is dire – such as walking into the emergency of a hospital (and realizing you are in Canada!) If this were the case you wouldn’t ask the Dr. Standing-In-Front-Of-You what kind of experience she has patching up people – you would instantly trust her. You might put your life, or the life of someone you love in her care – instantly.

You might meet a new financial advisor and like them right away, you might enjoy being around them but that isn’t trust. Trust happens gradually, when we have enough accumulated experiences to form an opinion.

Trust is made up of both right and left brain thoughts.

Left brain thoughts are logical, reasoning, measurement – “My advisor is technically competent and has runs a very professional and organized meeting.” Right brain thoughts are “I like my advisor because she is a great listener; she understands that really I just want regular reporting so I can relax at the lake, and she shares my love for downhill skiing which tells me a lot about her as a person.” Your clients will trust you if they feel you know what you are doing – if they understand your process, your thinking and reasoning is sound, and you report to them regularly which helps you to better manage their expectations.

However a part of why your clients’ ability to trust you will rely on what they specifically value about you as a person, and what similar things you value. Perhaps it is your awareness of their personal interests, and ability to ‘life-coach’ them. To bring value, you have to know what it is they value, and more importantly what they don’t value

Trust and the Ideal Client Profile

So if trust is both right and left brain, there is only so much time – there are only so many people you can work with and if the easiest way to grow your business is via referrals (47% study), then developing an awareness of your clients’ interests is essential.

I worked with a client many years ago who was very successful and very much in control of his practice. He had a clearly established Ideal Client Profile, probably similar to your own. He had established a minimum account size. He preferred to work with business owners with retirement issues on the horizon (what to do with the family business) and Paul operated at a Personal CFO for these clients. He was truly very effective and he hosted about a dozen events per year with his clients, and they often had an outdoor theme.

He also had knock out factors, and one of them was that he wouldn’t work with anyone who didn’t like the outdoors.

His business grew via referrals and networking and he figured that if a client wasn’t every going to attend a client event then the likelihood that this particular non-outdoor loving client would refer was low so he would have to really consider if he wanted to give up one of his valued 200 spots.

Trust requires partnership

Your clients have to participate in your process – they have to attend meetings and they have to communicate. Otherwise they are hiring you for transactions and the likelihood that they will refer or remain loyal is diminished. Not to mention that you really don’t get anything out of that relationship other than getting paid – there is no value.

Measuring your happiness by how much you get paid is what people with jobs do.

Measuring your happiness by how healthy your business is, and the clients you work for is, what entrepreneurs do.

Posted in Client Service, Referrals |

Shifting Perspective – New Spin on Old Thinking

December 7th, 2010

I did a webinar the other day for Raymond James financial these are the speaking notes from my presentation.
Have a great week.
DENNIS

What does it say about you that you bothered at all to make our call today?

The very best advisors are always looking to get better and you obviously are taking your business development seriously. Now take a leap of faith – just do these few things, and see what happens in your life.

I didn’t invent any of this – I am sharing exactly what I have observed are the consistent behaviors or practices of very successful financial advisors. I’m not asking you to have faith in the research, I’m asking you to have faith in a philosophy, and a process to make it a practice.

Some things to keep in mind.

1.      Don’t over-think this. You are much closer than you realize.

2.      You probably have most of your plan figured out – likely your problem is patience.

3.      Good ideas/disciplines/business practices compound – be patient, its magic.



This business is all about trust – if your clients trust you they will do anything you ask them to do.

Once you sort your clients into 3 groups (those who pay you 50/35/15% of your revenue) schedule all your meetings and calls.

Based on a 200 HH practice, typically only 40 HH represent 50% of annual revenue. Revene is assumed at 1% of assets under care.

40 HH = 50% of your revenue.

80 HH = 35% of your revenue.

80 HH = 15% of your revenue.

Structure 50% of your available time (50% of 800 hrs = 400 hrs) with the top 40 HH who earn you 50% of your revenue.

1.      40 HH /400 available hrs = 10hrs/HH/Year.

2.      80 HH/280 available hrs = 3.5hrs/HH/Year.

3.      80 HH /120 available hrs = 1.5hrs/HH/Year.

Ensure you spend the appropriate amount of time per client – you have to be incredibly time and capital efficient.

Now ask yourself why you are doing all of this anyway? Lets assume you want to make more money and take some stress out of your life – we can do that.

Your Goals.

1.      How much more do you want to make?

2.      Assume 100K = 10 Million NNA.

3.      Do you want 1 client with 10 million or 2 with 5 or 3 with about 3.3 each or 5 with two or maybe 20 new HH with 500K? Maybe somewhere in between?

Total Desired income = How much net new assets?

Where is the easiest place to find new people who need you?

How much is out there anyway …

Add up all the assets that exist outside your business – why are you not managing it? What is a reasonable goal for you as far as gathering some of these additional assets?

Assuming you gather that amount of assets – how close will that get you to your goal for increased income this year?

47% of High Net Worth Investors said they chose their advisor because of a personal referral.

How many good referrals do you recieve per year? How many referrals do you receive from your top 40 Families? What about your middle 80 families?

Successful financial advisors get a lot of referrals. It is usually their number one source for new revenue.

Your clients will refer you more business if they trust you, and if they feel that you understand them. To increase trust with your clients make sure you follow a process that explains your process, and your rules of engagement as far as how you run your practice.

Trust isn’t magic – it’s the result of a simple approach.

1.      Are you consistent – from a client standpoint are your professionally predictable? Do you call when you should, do you meet regularly, and do you strive to make your meetings events that your clients look forward to, learn from, and talk about?

2.      Are you and your clients congruent – do they know your process, your value, your definition for what you do, and what value you bring? Do they understand who you work with, who you don’t and why that is?

3.      Are you credible? Do you look the part, do you have a nice office, do you run your meetings well?

4.      Do your clients understand your personal and professional integrity – do you dictate the process and the pace of the relationship – have you clarified your Ideal Client Profile, and have you told your most desired clients who to refer, and how to do it?

5.      Finally – are you accountable?

Increase trust by scheduling appointments well in advance, which builds the perception of professionalism (you are prepared) and value (appointments are necessary). Increase trust by being consistent, and by reporting to and educating your clients about the current state of the markets, the economy, etc. and regularly present solutions or at least options to some of the challenges your client’s may face.

You have to ask your clients for partnership. You need to ensure that they understand what you do, why you do it, how you do it, and for whom you prefer to do it for. Your clients need to understand exactly how to refer someone to you – and you have to create an environment where they want to do so.

Investors sometimes make irrational, emotion-based decisions when they feel stressed or at risk.

When the news seems less critical, logic and reason tend to win the day. This means that when your clients feel informed, they are much more reasonable and open to taking advice, and much more likely to refer you new business.

They will refer the people they care about to you because they don’t want to see the people they care about suffer – but if your value is in doubt your referrals will suffer.

This is why having an incredible client experience is so important.

Your job is to keep your clients engaged with the process of accumulating wealth, and what can be done with it for personal, family, and community gain. Economics and the business world are fascinating – educate your cleints about their money, and their relationship with it.

Educate, entertain, empower. This is essentially what we are trying to do as far as building a successful business.

Get the Essentials Planned First – Your basic Communication/Update Schedule.

Decide How Many Meetings, and then set them up on TUESDAYS AND THURSDAYS whenever possible.

Client events, gold tournaments, and holiday parties are all nice ideas – but getting the meetings and calls scheduled is of most importance – you need to know when you are seeing your clients and they need to know too.

Think Details for a minute.

What would be the most incredible experience for your clients if they came in for a meeting? How would you confirm the appointment? What if anything would you send them ahead of time?

What makes McDonalds so great? A great burger? A fantastic tasting sandwhich? No way. What makes McDonalds so incredible is their process. By following the same process, by never varying their approapch the client is ensured that whenever they go to McDonalds, they know what they are going to get.

McDonalds has accomplished something truly amazing – they have never broken a promise to a client.

What could you do to make your meetings even better?

Record the information from your meetings and calls.

If Referrals are so critically important to you success, then you should do whatever you can to demonstrate that you are worthy of them.

During each call or meeting with a client, all kinds of information is shared in a casual setting. Before you get to the business, you might ask “whats new” or “did you enjoy your summer” or “are you planning to go on any trips” – it could be anything.

The point is that your client is sharing information – and you have the power and opportunity to seize it, leverage it, and profit from it.

Dennis M-W and his family as an example.

I own a business – its what I do for a living, and it takes up a lot of my thinking.

I have a daughter, and I do whatever I can to ensure that I am being a good dad – I save for education, but I also log a lot of hours in the park or playing with Ella.

We own a cabin in the woods, and I like to downhill ski.

If I am on an airplane heading to a meeting, the likelihood that I am thinking about my business or daydreaming about Ella, the cabin or downhill skiiing is pretty high. I don’t really think about very much else.

When I meet my advisor, we will talk about Ella, the cabin and downhill skiing.

The difference between my advisor and most other advisors is this – my advisor will send me something to read, or of interest on ‘cabin-lifestyle’ or an article from a SKI magazine.

This year my daughter, aged 3, is starting to learn to ski. My advisor and I discussed this in September when we met for my fall review.

We used that meeting to talk about what our plan would be for this January 2012 – how much I would be saving, my tax issues re my business, and of course where I am skiing this winter – Whistler in March, VT this winter, and of course at Tremblant where Ella will learn to ski.

Two weeks later I get a letter from my advisor, with a photo-copied article called “How to Raise a Skier” from SKI magazine.

The impact was huge – I was totally impressed. How hard was it for Tom to do that?

How hard was it for him to listen to what I said, record it all in his contact system and then TAKE THE INITIATIVE … he probably went onto ‘google’ and entered ‘how to teach a kid to ski’ and found 8,000,000 possible links to click on, all of them free, then print and send.

Business at the speed of light – sweet.

So now you have your MEETINGS and your CALLS scheduled, and you are prepared to record details from your various conversations and act on them when the moment presents itself.

Now you have to get yourself tightened up just a little.

Switch from working 9-5 every day on everything to a more sensible work week. Schedule specific tasks for specific days.

See all of your clients back to back on Tuesdays and Thursdays. You will be much more effecitve. Your meetings will be more enjoyable – and you will find that you are much more focussed and less taxed at the end of the day.

What about all the other stuff I should/could/would do if I were more on the ball?

Before you can run, you have to walk.

Once you get the essentials completed – then figure out the rest of the year.

You know that Jan/Feb/March is always a big season for reviews, and consolidating accounts, and topping up savings, or setting new goals.

Don’t wait until January to talk to me about it – get me thinking in September when I get back from the lake. Bring me in for a meeting, I will be at an interesting place in my thinking – I’ve had a good summer, I feel fortunate and no doubt a little anxious to get back to work and leave the play behind for a while.

Bring me in. Profile me. Catch up. Ask me about the summer, ask me about who visited, ask me about what is going on with my business this fall – ask me what I want to accomplish next year. Then tell me that when we meet in January we can put all of this in place.

Send me additional information between September and January that continues to educate me, to keep me connected.

Invite me to an event – send me an article of interest.

Demonstrate your commitment.

What does it feel like to be your client?

Imagine you are now a client of your firm.

You respect the professional approach your advisor takes. His/Her process is clear, and you appreciate that they are a specialist who really only works with people like you. Your advisor specializes in working with investors who share your situation.

Your advisors process is clear to you – and you like that your meetings are scheduled well in advance. Every meeting is the same and you look forward to them. Visiting your advisor is an event, and everyone takes an interest in you.

Throughout the year you are invited to certain events, where your advisor teaches you something that is relevant to you, but also he makes them fun by combining a non-financial element. These events are always held somewhere nice, and you feel good about yourself attending them.

On a quarterly basis you receive a statement.

On a quarterly basis you also receive an article that is of personal interest to you – and you always marvel at your advisors attention to detail.

Suddenly, someone you know asks about your advisor … What would you tell your friend?

Posted in Blog, Client Service, Good Ideas, Prospecting, Referrals |

United Airlines Cares About Me

November 7th, 2010

This is a very quick post regarding a great development and shift in customer thinking at United Airlines, specifically The Red Carpet Club.

United Red Carpet Lounges are offering a selection of domestic wines, spirits and beer complimentary – a gift. They have also brought in some fantastic food options so you don’t have to leave the comfort of the lounge to grab a bite to eat between flights. These are two simple adjustments in policy that make so much sense.

What a great move.

I probably paid $1000.00 in tickets last week, and United gave me a drink and I am writing about how great an idea that was! Talk about ROI! I sat down at the end of a long week, the lounge was quiet and peaceful and I sipped on a drink, compliments of my friends, and thought about what a great week it was. Let me say that again … I was in O’Hare, and I was happy.

Anything that you would judge to be successful is always built on the little things. Successful businesses, friendships, marriages and works of art would all be ordinary if not for the smallest or slightest details that somehow transform the ordinary into the noteworthy, that vault one business or product or artist over the heads of the others.

Great ROI

The Lounge should be an Oasis and more than a great experience – The Red Carpet Club should be something you look forward too – an event.

When your clients come to see you, you should strive to create the same experience as the Red Carpet Club did for me  – and that is that you make people completely comfortable. Meeting with you is a peaceful, pleasant and professional experience that is well thought out, and easy. Everyone is pleasant; the room is clutter free and attractive, there are all kinds of choices for refreshment, fresh cut flowers and a prepared agenda. Everyone is ready for the client. The entire experience is set up for the client to be happy – for the client’s emotional needs to be met.

Your Clients and Prospects will Feel it.

You don’t have to spend a lot of money to make extraordinary changes in regard to how it feels to do business with you.  You know that your guests are arriving at 10AM, why not make sure someone is waiting for them in the lobby to personally greet them? It doesn’t have to feel like a dentist appointment. Consider meeting in the conference room instead of your office. Invest in some high end pastries, and have a selection of drinks on hand – people don’t want to make decisions they want to have choices. Why not invest in some flowers – your clients want to associate and be associated with success and stability, take a few little steps to dramatically improve your experience. I met an advisor in Virginia who had a living room set up inside his office and he conducts many of his review meetings there. He has created his own lounge within a Merrill Lynch office. It’s brilliant. You literally feel the difference between his office and the rest of the floor.

In survey after survey, high net worth individuals have indicated that when they make a change to a new advisor the primary motivating factor was not the returns – it was the service, specifically the amount of contact and perceived value the client felt she or he was receiving.

To wrap this up – I was impressed that United Airlines made this move – it makes so much sense. My 2 hr layover was really nice, and the drink was very much appreciated. I will be flying United Airlines again this week, and this time I’m going to be a little happier about it.

Posted in Blog, Experience, Good Ideas, Good Marketing, Referrals |

KAIZEN

September 10th, 2010

Kaizen is a Japanese term that means “improvement” or “change for the better.” You can read all about this here: http://en.wikipedia.org/wiki/Kaizen

This is essentially what separates successful entrepreneurs from not-as-successful entrepreneurs. Successful people strive to improve every facet of their business, and it is a philosophy that is embraced by everyone from the CEO to the night time security guard. And that’s the way we have been running things here at DMWINC.

All two of us have embraced the KAIZEN philosophy.

With that said, the beta testing for the Practice Management Application for www.salesforce.com continues – and I am happy with the feedback. Our beta-testers love some parts of it, while they can’t figure out other aspects of the program at all.

This is actually good news.

The worst thing you can hear is “Yeah, I like it its great” which essentially means “I never actually looked at it.”

We are now going through the beta-testing forms and continuing to make adjustments. You will find a new trailer on the site that shows the client segmentation screen.

FORM A BOARD OF DIRECTORS

This entire experience has been incredible, frustrating, enlightening, inspiring, and terrifying. Doing something new, something risky, something that might not work out but costs a lot of money is scary. Asking other people or constructive criticism (and then getting it) can be painful.

However, its also the quickest and easiest way to get what you want – the business of your dreams.

I encourage you to do this – go out on a limb. Make a list of your favorite clients, and get them around a table as your unofficial board of directors –If you want to know where you need to improve, then the most important feedback will come from those clients who match your ideal client profile.

Often, the first step in receiving more referrals is demonstrating that you want to earn them.

Posted in Blog, Prospecting, Referrals, Services & Solutions |

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