Analysing your clients’ profiles and needs could help you deliver a better – and more competitive – service in the year ahead, as Ray Henderson explains.
Throughout 2013, many practices took time to stop and consider the strengths and weaknesses of their businesses by using our various tools and services to help them better understand their businesses. By doing this they were able to gauge their competitive positioning and set priorities for the future. Here are 10 of our key 2013 stats, and how we think they can be leveraged into new opportunities in the new year.
1. 53 per cent of clients are aged 60-plus
Many clients are steadily approaching the end of their accumulation phase. In fact, according to our CATScan (client survey) database, 44 per cent of clients are already retired. So what’s next for these clients? As they enter the retirement phase of their lives, funds will be drawn down, and the need for hands-on active management of investments, and service in general, will gradually reduce. What ongoing role will their adviser have? While the downside threat is obvious, we also think it presents a significant opportunity. What are the “new” products and services clients will be looking for? Annuities, estate planning, health and aged care services as well as philanthropy all spring to mind. As an example, it’s estimated that almost one in two Australians don’t have a will. This leads us into our second key stat.
2. The third-lowest-rated KPI is “range of services”
Out of the nine key performance indicators (KPIs) we ask clients to rate in our confidential client survey (CATScan), “range of services” comes in as the third lowest. (Incidentally, the two lowest-rated KPIs are client communication and the financial review process.)It begs the question – why so low? Is it simply a case of the adviser not providing these services, or is it that the clients are not actually aware of the full service range their adviser offers?
3. 48 per cent of clients’ children don’t know how their parents’ finances, legal or business affairs would be managed (NSW Trustee and Guardian Survey)
This also presents a timely opportunity to get to know clients’ children on a professional basis. What is it exactly that their parents’ adviser does, and how could he/she add value to not only the parents’ lives but also to theirs?
4. 19 per cent of clients are self-employed
When you consider that less than 40 per cent of practices have a key-person plan in place and only 29 per cent have a documented succession plan, it perhaps comes as no surprise that the self-employed client is under-represented in many practices. But what an opportunity!
5. The average number of client appointments per adviser per week is 5.7
One of our old favourites: just how does the adviser spend his/her time each week? If it’s not on revenue-producing activities, then what? And does it represent the best (most profitable) use of their time? It’s interesting to compare this stat to our “best practice” category, which indicates an average of 9.7 appointments per week.
