While the Australian financial services sector is huge in monetary terms, it is substantially influenced by a relatively small number of larger players (product manufacturers, platform providers and dealers alike), and the fact remains that financial advisers (ie: those who deal most directly with the Australian consumer) are effectively running “small businesses”.
And, very often, these principals operate in relative isolation to their profession. Outside of PD days and industry conferences, they generally have few opportunities to come together to learn from others who are running businesses similar to theirs – to share experiences and discuss pertinent issues with their peers and colleagues.
Consequently, it is difficult for most to know what is loosely termed (and for want of a better description) “best practice”. For example, in a business similar to mine:-
- What is the standard ratio of support staff to advisers?
- What is the average level of practice profitability?
- Is my practice performing better or worse than others in terms of growth/attrition rates over the past 12 months?
- How does my client satisfaction level compare to my peers, not only from within my own dealer but also to “external” firms?
- How often should staff meetings be held?
And so it goes on.
But as agents Mulder and Scully reminded us each week in the X Files – the truth is out there. It’s only a matter of taking time and making the effort to find out. So why don’t more seek out the truth and benchmark their practice?
Stats & Facts
- Those practices which proactively seek regular feedback from their clients in a structured manner are achieving a 74% uplift in profit (compared to those which don’t).
- Practices utilizing an external business adviser are achieving a 94% uplift in profit.
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CONSIDER (Findings derived from the latest analysis of the consolidated Business Health HealthCheck database conducted September 2009) |
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1. More than 2 in 3 Australian practices don’t actively seek feedback from their clients. And, of those that do, the majority conduct internal surveys only (and consequently don’t compare their results to the broader market). |
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2. Almost half of our practices are not currently utilising the services of an external business adviser, BDM, PDM or coach. Surely this lack of external input (challenge even) can’t be a good thing? |
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3. Both of the above stats are lower than our 2007 analysis. In today’s market it’s hard to believe that we are apparently going backwards in these critically important areas! |