Speaking about ethics and standards is one thing, but proving it is the most challenging part.
As marketing consultants, we’re finding that some financial planning outfits who have clients closely following the news coming out of the banking royal commission are now asking themselves how they can rebuild trust.
I wrote recently about my experience speaking to planners that are marketing to Millennials who haven’t received much client backlash at all. Of course, there’s no escaping that a few bad apples have tarnished the industry’s image, but I find the concept that Millennial clients might be less impacted about the negativity around advice at the moment to be interesting.
Some planners are already on the road to gaining client trust. In my opinion, your marketing and sales approach can provide some of the fuel to speed up this journey.
Reputation affects sales
There’s plenty of statistical evidence to support the impact of a crisis on your sales revenue. Dissatisfied clients will on average tell between 9-15 people about their poor experience.
Your marketing and sales efforts will be hampered by a miserable experience for some time, which means that some parts of the financial planning sector might have to endure the fallout from the royal commission for a bit yet. However, there are steps you can take to remedy this situation.
Clear communication is critical
There has been plenty written about the values of the financial planning industry and the ethics and regulation that all planners must adhere to. While the heightened discussion around standards and ethics is fantastic, principals and partners need to ensure these messages are communicated via the firm’s website, marketing collateral, thought leadership, social media and so on.
The trick is that you and your business must communicate clearly with clients and be prepared to prove your ethical commitments. That said, proving this commitment is the most challenging part of the equation.
Providing evidence relating to your practice standards and ethics is achievable if you attack the challenge in two ways:
- Independent verification: For example, if you have client testimonials, make sure they’re at the forefront of your communication.
- Live it: Make sure you and your planners are living it. You need to be communicating with your clients at an individual level in the same way that you state in your values. Otherwise, they are just words.
Don’t ignore what’s happened
Ignoring the revelations from the commission is a mistake. One planner I spoke to has taken a front foot approach and started addressing early the findings from the royal commission with her clients, rather than waiting for them to approach her.
An upfront approach is a smart strategy, as there needs to be recognition in your communication that there have been some practices that haven’t met the industry standards. Therefore, I would suggest supplying your planners with approved messaging they can use if a client wants to discuss the royal commission. Helping your planners manage the process is crucial to getting the messaging about the inquiry right.
Think about your messaging
Repairing a dented reputation is not always easy. Ultimately, I believe every planning business must think about its strategy and how it wants clients – current and potential – to think about their business. Having a marketing strategy has always been important. However, in the wake of the royal commission, a strategic approach to your marketing is now more critical than ever.
