The good news was that general insurance covers motor failure in fridges and dishwashers and the like.

The really bad news was that my policy did not cover motor breakdown.

The good news is that now I know, and now it does.

I’m not covered this time, but next time I will be and I’ve now learned that reading my insurance policy is a good idea.

But it’s not just about reading the policy, it’s about knowing what to look for and what the small print might include.

And that’s where, in this new environment of advisers proving their value proposition, that little tips even on things like general insurance – which advisers are unlikely to sell – can prove valuable to clients.

For life insurance, which you of course are more likely to sell, there are plenty of ways in which you can prove value. Often it won’t be appreciated until claim time, but you can explain to clients what their lives would look like without insurance.

How would a couple bring up two children if one of the couple was no longer there, working or taking care of them? If the non-working partner was no longer there could the working partner continue to work? Would they need a break before working again? In some ways would it be more difficult if one partner became severely disabled.

It’s difficult sometimes for clients to see past the potential accident or illness or death to the life beyond that. This is where you, as an adviser, can truly enlighten them.

Don’t feel that it’s obvious. Don’t feel that the small print – does not need explaining and the consequences of all the insurance options are not detailed.

Once you have really enlightened a client, I would find it difficult to imagine that clients would choose not to be insured.

And beyond proving your value to the client, you are securing a revenue stream which will hopefully diversify your business. Even in a fee for service environment, the insurance piece will win you clients even when they’re not looking to invest.

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The opt-in/opt-out debate is still top of the list for most financial advisers. Industry is quite divided on the issue.

The theory behind the opt-in service is that if clients feel that they want and are receiving value from a service provided they will opt-in to pay. Too often we have found people are apathetic towards their superannuation and other financial products. They do not realise the fees and charges and for too long have paid for services they have not had or known they were entitled to.

However, for advisers earning a good part of their income that way, this is a huge financial blow.

Many advisers believe that not only are their livelihoods affected by the new legislation but also their clients’ best interests.

Research recently undertaken by CoreData on behalf of the AFA has backed advisers in this argument, stating that during the financial crisis investors largely acted in two ways – exiting the market and storing their assets in cash and those who saw the market freefall as an opportunity to buy discounted assets.

The CoreData research on the high net worth investor segment clearly showed that those who remained in the market, and even used the crisis as a chance to buy new assets benefited significantly from the recovery while those who exited are in no ways better off than 12 months ago.

Extrapolated from this is that many advisers’ clients would have likely chosen not to opt-in, had the rule existed during the financial crisis, and as a result would have been worse off for their decision.

This is clearly another area of opportunity for advisers acting in their own best interests to make sure they are able to articulate the value of advice and their own offering to clients and potential clients.

If a client is sold on the need of an adviser’s service they are more likely to choose to stick with them in good times and bad. However, if a client does not feel they are receiving value for the service that they are receiving they will not choose to opt-in. It’s similar to an adviser’s own behaviour should they feel they were not receiving value for something they were paying for. They would choose not to opt-in.

What is your value proposition? Is it a good one? Are people going to choose you and what you offer? Spending the time developing that proposition now is going to see you reap the benefits later.

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This week I’m happy to say that some financial planners are going above and beyond by sending Christmas cards to clients and providing them with a final newsletter with financial tips over Christmas and generally letting them know their financial planners own plans for the holiday season.

It’s certainly connecting with your clientele that is repeatedly affirmed as essential to building your business and profitability.

It’s not hard. The note needs just to say –

A note at this time this makes your client think of you in what is essentially a personal family time. You are building a relationship by participating with them as a trusted adviser during this time. You are not asking for anything – just giving of your thoughts and expertise. This can only bring good returns in the new year.

Most clients have a personal email address for you to use. They are likely to be checking emails right up until Christmas. You still have the best part of a week to wish them and have them thinking of you again.

Start drafting and good luck.

If you can’t manage it by Christmas, start the new year with a welcome to 2011. Provide a few tips of getting through the holiday season – get them tracking back to budget. Provide a call to action and once again emphasise your value to them and more broadly the value of advice.

That’s all folks for 2010.

Merry Christmas to you one and all and a bright and fortune filled 2011.

The post Let them know it’s Christmas appeared first on AdviserVoice.

It made me focus on an important message that still seems lacking in some areas of the financial planning world.

I cannot recall the number of times that I’ve heard business coaches and consultants tell financial planners that checking in with their clients – by calling them once a quarter or when the market is experiencing swings or when their situations change is returned several fold to the business.

It’s such a simple win that I assume the message has gotten through.

And it’s not a new idea. In the decade or so I’ve been involved in the financial planning world I’ve heard it said again and again. Call your clients!

The business of financial planning is about building relationships and trust so keeping in touch is vital.

This week I heard that one of the reasons clients give often for leaving their planner is that he or she didn’t return my calls.

I find that amazing. What an easy win. During this time, when it is more than usually important to justify the cost of advice and demonstrate the value – a phone call is surely a small ask.

Over three months’ ago, I contacted my financial planner about my changed circumstances. I’d put my investments on hold and said I’d call when I was ready to start reinvesting.

Since then, I started a new job, circumstances again changed and I hadn’t called. But I’ve had no call from him either.

I’m now ready to restart my investments. Do you think I’m going to call?

When circumstances change, often there is a cleansing moment. Cleaning out my wardrobe was one of my actions, redoing my financial plan was another.

If my financial planner had run to ask how I was doing, show empathy with changing circumstances, ask if there was anything he could help with I would have made an appointment to talk strategy.

As he didn’t and I was keen to change strategies I found someone else who has already demonstrated greater understanding.

It’s a personal relationship and financial planners should never forget this. The argument that the planner owns the client can only work if the relationship between the client and planners is solid and maintained.

Business Health has crunched the numbers on how much difference being in touch with clients can positively affect a business’s profitability.

These are sobering stats for those who haven’t picked up the phone but encouraging for those who keep in touch.

Remember, as Blondie said, Call Me. Call me on the line, call me anytime.

The post Call me appeared first on AdviserVoice.

On average we’d each been married once. And another interesting statistic that I considered was that of those who had experienced marriage, 100 per cent had been convinced of the benefits and had continued to believe in marriage despite the overall unsuccessful experience they had.

Similarly, your financial planning clients seldom say they have bad experiences or do not value what you do. It is really those without experience who surveys find are not convinced of the merits of seeking financial advice.

So how do we educate them? How do we tell the greater public what it is that a financial planner does and how it can benefit them?

The AFA’s “make a plan” campaign is a great start. What is the point of financial planning and how can it make one better off is a great way to introduce the idea. But the media tarnishing financial planners also needs to be redressed.

It’s a big like the chicken and the egg. Do we need to sell the idea of a professional financial planner before the value of planning or should the value of planning come first. Or is there a way of presenting both in concert?

Do we need to attract people to advice slowly, in a bit by bit manner – first advising on super or insurance and then a savings plan?

Distribution has become so much easier for most products and services since the explosion of the internet – but the regulatory system makes it difficult for financial advice. Perhaps when someone cracks it a new era will emerge and this will affect pricing and the value chain and the landscape as we know it.

Everyone is trying to get out there the best that they can – through bank channels, super funds, fund manager websites but it’s not yet cutting through to the clients that everyone is missing.

Can a government agency help, will an experience website do it – Red Balloon offering financial planning services for a family? Or perhaps ebay – what would the highest bidder pay for financial advice?

It’s a new world and we’re still working on how best to operate within our new parameters.

But it’s first mover who will win the greatest advantage – any ideas you can share?

According to research by CoreData/brandmanagement commissioned by the AFA in July it was found that financial advisers are highly trusted by the advised, coming in third behind doctors and dentists, although the unadvised awarded a much lower trust rating of 4.5.

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The FPA previewed its new advertising campaign to conference delegates on the Gold Coast last week. Its focus is on the professionalism of its members. It comes mere weeks after the AFA’s own advertising initiative was launched at its conference also on the Gold Coast. Its message focuses on the need to plan. Both associations have recognised the need for the public to be made aware of professional financial planners and financial planning. They both see a need for the public to recognise their own members are operating under strict ethics and standards – as opposed to financial planners not members of the associations.

Selling the value of advice is almost 20 years in the making, with promises from the FPA of promoting the brand to consumers emanating from its very first conferences. And it follows the cringe-worthy Dazza campaign of some years ago. Its current idea is to promote planning so that at a local barbecue, a FPA member can talk with pride about his profession among his mates.

The FPA stated its mission is to focus “on the things that will elevate our industry to a universally respected profession”. “Financial planning is a young profession, still in its infancy. We may feel a tad envious of the respect that some other professions command, but they’ve been at it for a lot longer – the medical profession first pledged the Hippocratic Oath 2500 years ago.” (from the FPA’s new brand marketing document). Again, the association compares itself with doctors. Is it perhaps a tad arrogant, and certainly not doing itself any favours by perpetuating the comparison? Despite this, the aim of the FPA becoming an association of which its members “adhere to the highest standards of professionalism, inspiring trust and confidence in the community” is certainly achievable, admirable and aspirational.

The FPA has priced its advertising offering on behalf of planners at $220 a year from each member (or $20 a month). The AFA has asked its members for voluntary donations to its “Make a Plan” campaign. It is estimated to be looking at raising over $2.5 million, with firms contributing what they can and some pitching in up to $10,000. While the AFA is looking at a $2.5 million ad spend, the FPA has a large war-chest of its own and is going to claim an additional $1.76 million from its members each year of the 5-year campaign – so its spend can be much larger.

Running dual advertising campaigns will confuse the consumer in an already acknowledged over-complicated industry.

Perhaps to really promote financial planning in the community some more co-operation is needed.  The associations need to agree ethics, educational standards and promote professionalism in tandem.

It is, after all, a single profession no matter which industry Association one supports. Many financial planners are members of both associations from which they derive different value. How can we expect to capture the public with fractured industry campaigns? The industry funds were able to successfully express their message because they were united. At this time, surely we can all see the benefits of a united front?

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Things haven’t changed since the 1960s. The Sex Discrimination Act might have been enacted in 1984 but not a great deal had changed since then.

And smart, savvy women wanted to know how they could encourage change in their own businesses. On Wednesday FINSIA held a managing your career session for women in business and on Friday Sphinxx held its fourth Ascend day also focused on promoting women in business.

Why is it so difficult? Because men and women speak different languages in the workplace.

Financial services is dominated by men, and as a result, the business culture has adopted the male forms of communication. Women need to translate their communication to one that is easily understood by the male mind.

While it was agreed there was no need to emulate men – and discard their femininity there was a message that men do business in their way and women do it theirs but when most of the decision makers in management remain in male hands then women need to be aware of “playing the game” in the same way.

Top tips

• Be visible. Too often, women remain invisible in the organisation. Many focus on their work and getting the job done to the exclusion of promoting themselves and the contribution they are making to a business. This can easily be rectified by working a little less and promoting a little more. It’s the way men have been doing business for some time.
• Take risks. They were afraid of taking risks. Whether this was to do a new job in which there were aspects they had not taken before, or leaving a company when they were not receiving the promotions they believed they deserved. According to Sphinxx Ascend guest speaker and managing director of Cameron Ralph Lynn Ralph, we shouldn’t worry so much about what could go wrong because, chances are, they won’t.
• Ask for what you want. Women are largely not demanding pay rises and promotions the way their male counterparts are. Sphinxx principal Jen Dalitz said, we should approach what we want like children focused on the Christmas presents that they want. Be tenacious. Don’t stop asking.
• Focus on return on effort. Women do not pay enough attention to the ROE (return on effort) when they strive for perfection in their work. Is the extra 20 per cent worthwhile when 80 per cent was already working to achieve your work needs so you could spend the additional 20 per cent focused on other business goals – like having yourself move up the corporate ladder.

Australian business seen as macho

According to business coach and researcher Dr Margaret Byrne, anthropologists around the world are agreed that Australia is between 10-12 of the countries rated the most masculine in the world. Japan ranks top of the lists.

We can see this translated into business by the use of language that is used. It is often based on sporting analogies, such as “track record”, “runs on the board”, “let that one go through to the keeper” and many more. As women we do not make a contribution that other people listen to? How impactful are you in a meeting setting?

“You are judged more and more in that than other parts of the job where you work alone.”

“As women, we are not yet at the starting line. It’s not Denmark or Norway,” Byrne said.

“If you can’t deal with meetings in Australian workplace culture you will never make it past the top of the middle,” Byrne said.

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These could be the words of the big players NAB, AXA, AMP or it could be a smaller dealer group, or some boutique financial planners, but they weren’t.

They were the words of Virgin Blue’s CEO John Borghetti, who addressed the Financial Services Council in Sydney earlier this month. The rest of the sentence was – “we have a formidable weapon not available to our competitors – the people and culture of Virgin Blue.” But this can also be true of many other businesses – in many industries including financial services.

Facing similar issues as financial services businesses – Borghetti said that the only thing constant in the industry is that nothing stays the same and challenges are always present – dressed in many different forms – from high fuel prices to SARS and more recently with the GFC. Financial services might swap thee aviation industry’s issues with greater regulation, shaky markets, and government reform. However, the way that smart leaders face these challenges is to recognise the strengths of their business.

To highlight the people and culture is something not often heard in financial services. It is important for a strong culture to have a strong leader. When Virgin took flight in Australia for the first time – just over 10 years ago – its larger than life leader Richard Branson stamped his personal brand over their airline. It was attractive young hip staff. The airline was a low-cost carrier – unique in the market.  Today the market has changed. There is greater competition, cheaper fares and expanded markets.

Borghetti took the reins of the company just four months ago and already looks different  from the jeans-wearing management of old– he wears Zegna ties and suits. But he says that it’s not a contrast to the culture of the staff  – instead he says it’s an evolution. “The staff knows they have to evolve to keep the culture and be ready for something new,” Borghetti said. “You have to bring people with you and they have to be willing to come with you.”

Looking at the challenges ahead – Borghetti says, in the past 10 years the size of the domestic market has doubled. Meanwhile, general consumer prices are up 36 per cent, but commonly available domestic fares have dropped 15 per cent and in nominal terms 23 per cent (excluding GST). It’s an environment not unlike financial planning.

Borghetti said Virgin Blue would use its strengths to meet the challenges of the 21st century – its timing, hunger and people and “we don’t know what was impossible “. Who will be the financial services’ Virgin Blue?

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