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.
6. 41 per cent of clients are confident having their financial affairs managed by someone (in the practice) other than their current adviser
The “principal dependency” risk that this stat presents should also provide impetus
to encourage owners to identify and develop their in-house capability now. Do you have the “right” people already in place to help you deliver the services your clients need? If your answer is “no”, “not yet” or, even worse “don’t know”, will 2014 be the year for you to do something about it before the threat is realised and the opportunity lost?
7. 60 per cent of clients believe they have referred their adviser
Almost 90 per cent of clients are generally satisfied with their adviser and are more than happy to refer him/her to others; and nearly 60 per cent believe they have actually done so. Whatever the reasons for this disconnect, the fact remains that the “referral potential” remains alive and well.
8. 18 per cent of practices operate an effective review process
We view “effective” as a process that is fully documented, involves more than one person from the practice and allows sufficient time for all aspects of the client’s plan to be considered. It invariably requires both parties (if a couple) to participate and is generally preceded by a “scene setting” questionnaire and proposed agenda.
9. The number of clients in the average practice is 836
And given that the average practice has less than two advisers, it’s most likely that these numbers can’t work going forward. For many practices, more work around segmentation, costing of services and removal of cross-subsidies between different client segments must surely be on the agenda for 2014.
10. 15 per cent of practices have a structured approach to seeking feedback from their clients
Given the tumultuous market of the past few years, the number of high-profile corporate collapses and the negative media our profession has attracted over the past few years, it almost defies belief that so few practices have sought feedback and constructive input from their clients.
