Connecting and communicating with clients.

Typically when financial advisers talk to their clients, they talk in numbers and statistics, have pie charts, numerous PowerPoint slides and talk in industry jargon all very rational and left brain focused.

Left brained focused people are those that constantly seek more information making it very hard for them to make a decision. 80% of people buy with their emotions and reason with logic later.

Whilst the left brain people want the information and can’t make a decision, right brain focused people want to see the whole picture, get a feel for what it could be like and makes decisions easier then allowing the left brain to go ahead and plan. Once you can understand the importance of this point; of communicating to the right brain first, you will appreciate the power of story telling and why so many successful advisers are using this strategy all over the world.

Sharing facts and figures is always going to be important given this profession but when an adviser talks only about that and doesn’t engage with the context, the bigger picture for the client, they risk losing that potential client all together. I have witnessed presentations from advisers where they roll out their 50 slide PowerPoint and talk about every slide not once relating back to the client so that they can see how all this information sits in their world; “what does it have to do with me?” Is what many clients are left thinking. The right side of the brain wants to know how all the information that was shared, fits into their situation.

Help your clients see in their own minds what all this information means to them. Allowing your clients to create their own image in their minds is more powerful than any picture you could draw. You need to be tapping into the emotional right brain all the time to get the clients to see how this will help them in their quest for their future. Keep asking, “How do you feel about this?” because emotion precedes logic. Clients buy with their emotions and reason with logic later.

A great way to start engaging with a client’s right brain more is to use metaphors in presentations. A metaphor is a word picture that gives language power by involving our senses in the experience. For example, you may have a client who is a boat enthusiast. By using boating as your metaphor you will connect more with the right side of the brain. “Jack, we need to be selective when investing and find companies that won’t sink and drown. We want to be afloat and ready to set sail at anytime that suits you, no matter what the situation.” That statement followed up by some numbers and statistics will appeal to the whole brain making more of a connection, building trust and ultimately loyalty with that client. It’s about sharing wisdom and experience.

Another example may be around you persuading a potential client that they should engage you as their Adviser. “Jack, what if you were going on a trip and you were offered the opportunity to fly on one of two jet airplanes? The first is piloted by an experienced pilot who is being paid to pilot; the second has no pilot but you are allowed to fly it yourself. If you choose that plane without the pilot, a computer will be installed in the cockpit that hooks you up to an Internet site that will tell you everything you need to know about flying. Which plane do you want for your journey? What you’re paying for when you hire an adviser is not information – you can get that anywhere. You’re paying for experience. I’ve been there in bad weather and know how to make a safe landing.”  “How Top producers Sell” West & Anthony. Given the amount of advertising about online risk solutions, no medicals, easy sign up etc; this could be a great example to use.

When we hear the words, “let me tell you a story…” we instantly relax, let down our guards and open our minds to listen. If you can become a natural story teller who can also draw out what is happening, you will stand out from the crowd and give your clients no reason to go anywhere else because you will have connected with them on every level and informed them. As I speak with more and more advisers across Australia, I know that the successful ones are using these ‘persuasive techniques’.

Trust is an extremely popular word in this industry and research shows that if a client feels they can trust you there is little chance they will ever leave you, whatever happens in the markets. Having a trusted adviser is ranked as high, if not higher, than receiving excellent returns. In Australia we like to do business with people we connect with and have a good feeling about, which is why communicating to the right side of the brain is so important to business success.

Below is a checklist of some items that could help you in your next presentation:

The post How to connect and communicate with clients? appeared first on AdviserVoice.

The changes include powerful new tax tools that could mean a better after-tax investment return for clients on particular transactions and new trading enhancements that reduce the time spent on portfolio management, client reviews and rebalances.

Head of BT Wrap, Chris Freeman, said the changes were part of an ongoing drive to increase the efficiency for advisers and deliver even better value to BT Wrap investors.

“These features are game changing. Not only will they make it easier for advisers to trade equities and managed funds, but they’ll also enable them to proactively manage tax outcomes of certain sales when trading. These enhancements have the potential to directly improve clients’ after-tax investment returns and in challenging markets like these, we all know that’s becoming increasingly important.”

BT Wrap will now offer “Minimum Gain” (Min Gain) as the new default sale allocation method for investment and accumulation accounts, meaning the parcel that will be sold first is the one that results in the lowest estimated taxable gain.
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In addition, BT Wrap will provide access to additional information on the trading screen. Advisers will now benefit from access to the estimated taxable gain or loss of the proposed trade to help make smart trading decisions and they’ll be prompted with warnings if a proposed trade may lose specific tax concessions. New daily financial year-to-date reporting for estimated realised and estimated unrealised capital gains will also be introduced to facilitate more meaningful dialogue between advisers and accountants to better manage clients’ CGT outcomes.
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Mr Freeman said early feedback from advisers has been overwhelmingly positive.
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“We have been working closely with advisers on these changes and the feedback we have already had is that this will dramatically improve advisers’ ability to offer better service to clients, and to do so more efficiently,” Mr Freeman said.

Details of the changes

• New default sale allocation method. The new default sale allocation method for investment and accumulation accounts is Min Gain. This increases the potential for clients to obtain a better after-tax investment return on particular transactions. It replaces the traditional ‘First In First Out’ (FIFO) method. Min Gain automatically sells the parcel that results in the lowest estimated taxable gain. For pension accounts the default sale allocation method is ‘Maximum Gain’ (Max Gain) – seeking a tax result which is generally appropriate for that environment. The appropriate default sale allocation method depends on a client’s particular circumstances – advisers can change from the default allocation to ensure the appropriate method is selected.
• Automatic calculations display the estimated taxable gain or loss for each sell order on the trading screen– giving advisers better tax insight to help make the right trading decisions.
• Automatic warnings at the point of trade where the trade could trigger the loss of specific tax concessions. A sophisticated warning system will alert advisers to the potential loss.
• Financial year-to-date Capital Gains Tax reporting on both estimated realised and estimated unrealised gains or losses. The reporting will display the sale (or simulated sale) as it applies to each tax parcel allocated to the sale and, for each tax parcel sold, will provide a separate CGT calculation. In addition, the report will help advisers manage their clients’ tax more effectively on a daily basis, without waiting for the end of the financial year.
• Single-trading screen. Advisers can now place up to 50 listed security and managed fund trades on a single screen. The single-screen trading feature – which brings market and company information, tax simulations, up-to-date cash balances and the trading engine together – makes the process simpler and trading smarter. Previously buy and sell trading was performed across up to five screens.

Click to download a copy of the enhanced-trading-quick-reference-guide and tax-quick-reference-guide from BT.

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The integration delivers a more seamless service to advisers and will increase their productivity.

AdviserNETgain combines client, practice and advice management processes into one easy-to-use system that integrates advisers’ front and back office.

The integration sees:

• Direct movement of data from BT Wrap to AdviserNETgain leading to a more reliable and accurate transfer of data. This eliminates the need for advisers and other personnel to spend time updating data when generating portfolio reviews
• A single log-on meaning users logging on to AdviserNETgain are automatically logged on to BT Wrap
• The ability to move immediately from viewing a client’s details on AdviserNETgain to viewing the same client’s details on BT Wrap – without having to search for the client

Details on fees and transaction summaries from BT Wrap automatically inserted into advice documents generated by AdviserNETgain. National Manager of AdviserNETgain, Darelle Jenkins, said the integration was another significant step in improving advisers’ productivity and enabling advisers to provide timely and accurate service and advice to their clients.
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“AdviserNETgain is an important tool available to BT Financial Group’s aligned dealers. This major integration provides advisers with accurate, up-to-date information and effortless access to BT Wrap. The more up-to-date information AdviserNETgain has access to, the better clients can be served.”Head of BT Wrap, Chris Freeman, said.
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BT Wrap users would be well-served by the improved integration between the systems.
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“Many advisers who are currently using AdviserNETgain have portfolios in BT Wrap. This integration makes providing advice and ongoing service to clients with BT Wrap holdings extremely efficient.”

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This one is the most obvious of all. If you don’t have a website, you are wasting possibly the biggest opportunity available to bring in new clients as well as engaging your existing clients.

Websites can also save time.  Instead of clients calling you every time they need a fax number or some other mundane piece of information, they can simply visit your website for all the info they need.

Some advisers say they would prefer to let their client call them, as there may be opportunities for further business that can come from a phone call. That may be true, but a well designed website will engage your clients in a ways that we simply cannot do over the phone.

Top Tip: Get yourself online right now, even if it’s a basic one page website to start with.

2. Go Paperless

I have visited dozens of financial planning firms over the years that have serious office space devoted to files. This is just money down the drain, big time! Think about what you could do with that space. Put on another adviser, sub-lease the space to an accountant or other professional etc.

There are other benefits as well. Every time one of your clients calls, do you have to run to the filing room to find their file? With a good paperless system all of your clients’ documents are just a few mouse clicks away. And with the right security in place your client’s information will be as safe as ever.

What would happen to your precious paper files in the event of fire or flood? They’d be gone! A properly backed-up paperless system will be secure no matter what happens.

There are also huge savings on paper, ink and toner cartridges, not to mention reduced servicing bills on your printing equipment.

Getting a paperless office in place is easier than you may think, and the sooner you start the better.

Top Tip: Plan out your paperless system before you start, otherwise you could end up with a mess.
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3. Send a regular email newsletter

How often do you contact all of your clients? Once a year? For many clients they’d be lucky to get that!
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An email newsletter is an extremely cost effective way of keeping in contact with your clients (and prospective clients) and staying top of mind whenever they think about financial matters. You may not have time to write and distribute such a newsletter, but there are professionals out there who can provide this service for a reasonable fee.  And in my experience, the return on investment is almost second to none in terms of marketing.
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Top Tip: Start collecting client email addresses from today and build your database.
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4. Build a Brand

Branding is a complex subject and I won’t go into too much detail now, but building a brand is something you should be doing from day one in any business.
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Don’t be just another professional services provider like every other financial adviser, accountant and lawyer out there. Set yourself apart with appropriate branding that reflects what you and your business are all about.
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Do you have a logo or corporate colours? Do they represent you well? Do they look professional? Are you using them consistently across all contact points you have with your clients? If not, start today.
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Top Tip: Get your logo right and start using it everywhere.
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5. Track Everything

If the only way you measure your business is by the amount of money you have, then you’re not doing enough. All good businesses should be tracking everything from where their leads come from to how much their average client is worth.
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By tracking everything in this manner you will quickly be able to identify the strengths and weaknesses in your business, and redistribute your efforts to ensure your business is running as well as possible.
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Tracking also make goal setting far easier, and we all know that goal setting is vital for any successful business.
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Top Tip: Even with basic Excel skills you should be able to build yourself a handy tracking spreadsheet.
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6. Create Content

Content is King! At least that’s what they say in the world of internet marketing. As advisers, we all have a huge amount of knowledge and experience, but for most of us it is all in our head. Google can’t search our heads (yet!) so they don’t know how knowledgeable or experienced we are.
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Turning your knowledge and experience into content, then storing and distributing it online can have massive benefits for your business.
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Today, if someone has a question about insurance or finance, they are less likely to search the Yellow Pages for an adviser, and much more likely to type their question straight into Google.If they find their way to your website via Google, and your website answers their question, then they will already see you as an authority on the subject.
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Once they are ready to take the next step, you are likely to be the first person they contact.The more relevant content you have, the more Google will like you, and the more people it will direct to your site. The more people who are directed to your site, the more leads you will have, and ultimately the more clients you will have.
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Top Tip: Set aside an hour each week to write an article.
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If writing isn’t your strong point engage the services of a ghost writer.
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7. Determine Your Ideal Client

Identifying your ideal client should really be the first thing any new or existing business does. Your ideal client should determine the type of marketing you do, your branding and the way you interact and communicate with your clients.
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Top Tip: Sit down and determine your ideal client tonight.
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8. Review Your Marketing Strategy

For many advisers their marketing is a mixture of various components which have been added over the years. But how do you know if your marketing is working?  How do you know which marketing money is being spent well and which is being wasted?
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Now is the right time to document all of your marketing activities and take a good look at what is and isn’t working. Don’t keep paying for the same listing year after year just because “you’ve always done it”.
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The internet has changed marketing enormously over the last decade. If you’re still relying on the Yellow Pages, it’s time to catch up…
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Top Tip: Don’t be afraid to change your marketing to suit the changing world.
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9. Review Your Office Procedures

It doesn’t matter if you’re a sole trader working from home or a large firm with 100 staff, there are always things that you could be doing better. Many processes and procedures within our businesses have evolved over time, and often there will have been changed brought about by staff movements or regulatory changes.
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The problem with this is that we can end up with convoluted processes which may be costing us more time and money than they should.
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You should step back and take a look at what processes are taking the most time and effort. Are there things that we should be doing more, less, or differently? Don’t have that old attitude of “but this is what we’ve always done”.
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Top Tip: Sometimes a fresh pair of eyes can be better at identifying issues and areas for improvement, so don’t be afraid to involve someone from outside of your business.
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10. Document Your Office Procedures

Getting your processes and procedures down on paper can be a time consuming process, but it may be one of the best investments you’ll ever make. If someone had to step in and take over the running of your business tomorrow, how easily could you explain all of your processes to them? What if you were stuck in a hospital bed and couldn’t explain a thing?
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Without properly documented processes your business could quickly spiral out of control, leaving you with a huge mess if and when you were able to return.
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Other benefits to having documented processes include easier staff training and better regulatory compliance. And when it comes time to sell your business or bring on an investor, having documented processes will make your business much more attractive.
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Top Tip: If you don’t have time to write them yourself, engage the services of a professional.Get started today!
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These tips have been proven useful by real advice businesses just like yours. Many of them you should be able to implement on your own, but if you need a hand I can help you regardless of how small or large your business is.
For more information visit ShaneMoore.com.au

The post Shane Moore: 10 Ways to Improve Your Financial Advice Business Today appeared first on AdviserVoice.

“The $82,000 is a number the industry fund movement calculated for a forty year period,” AFA National President Brad Fox said. “That’s less than the cost of a cup of coffee and a biscuit a day. And yet the difference that strategic financial advice can make to a client’s financial situation over the same period of time can translate to much higher superannuation balances and significantly better protection against the financial impact of early death, disablement and serious illness.”

Mr Fox said the industry funds rhetoric purposely ignores the impact and value of strategic financial advice – advice which takes into account a client’s overall financial situation and unique needs – in order to further its own agenda.

“It is quite evident from our Back to Basics consumer research that there is no consumer crisis in confidence in financial advice,” Mr Fox said. “The industry funds are, yet again, crying wolf.  We believe that Australians are much too smart to fall for it.”

Back to Basics, issued last year, revealed that consumers who receive advice not only highly value that advice, but are better off.

“The industry funds movement’s continued attack on financial adviser remuneration is an attempt to deflect attention away from its own member administrative fees,” Mr Fox said. “It is hypocritical on their part to argue for transparency around adviser remuneration when they do not themselves disclose how they are spending the admin fees they charge their members. As they are not-for-profit, they must be using admin fees to fund their multi-million dollar advertising campaigns in print and on TV. It’s hard to see how this use of money ‘profits members’.”

Mr Fox also argued that members’ fees must also be being used to pay for the provision of intra-fund advice. “The wages of call centre advisers providing intra-fund advice to members must be paid somehow. If not from members fees, then how?”

Mr Fox said it is time for all parts of the industry to work together. “While the industry spends a lot of time and money naval-gazing and polling consumers, the people of Australia continue to face much bigger issues – they are still grossly under-insured and have very little set aside for retirement. It’s time we all pulled together to help address these issues.”

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