How client advisory boards lead to referrals and a better business

Do you know what your clients really think about you and how they interact with you? Would you ask them? These two MDRT members do by forming client advisory boards. While they admit it isn’t always easy hearing less-than-glowing responses about how they do business, it can lead to insights that improve business. The key is to avoid vague complaints and instead gather the information in a way that gives you useful information you can take action on.

Insightful questions

James W. Johnson, a Top of the Table qualifier from Laguna Hills, California, holds client advisory boards quarterly. Sessions last about 90 minutes, and he provides a meal. To serve on the board, he invites six to eight non-clients, top clients or new clients who can both offer good referrals as well as provide insights.

Johnson, a 12-year MDRT member, starts the session with a quick overview of the services he offers and then asks people what they think is the best way to be contacted about those services — such as newsletters, cards, seminars and so forth — and how often.

He then asks about them a few questions, such as:

• Do you feel it would be valuable to conduct educational sessions for our clients and their friends and family on topics that are timely and relevant for accomplishing financial objectives? Why or why not?
• What presentation topics do you feel would be well attended if we offered an educational session for our clients
• Where would you go to look/inquire if you were interested in our services?
• What is one product, strategy or investment concept that you wish you understood better than you do today?
• How can we improve the overall experience that our clients have?
• How do you believe people would like to be approached about providing us with favorable introductions?
• If you are willing to provide a favorable introduction to people you know, do you know how to do that?

Once you ask the question, “you shut up,” Johnson said.

“It really works,” he said. “While you don’t necessarily get business from these sessions, it helps you improve business. Although it was scary early on because you don’t know what people are going to say.”

Client advice

Meagan S. Balaneski, CFP, RFP, recently started a client advisory council, which provides client feedback as well as helps clients feel invested in her success.

This works by Balaneski inviting 10 of her top clients to spend a couple of hours weighing in on a specific topic related to the practice. One thing she learned, for example, was clients wanted more frequent and in-depth reviews of their portfolios. So Balaneski, a seven-year MDRT member from Vermilion, Alberta, Canada, realized she needed to bring on a financial analyst as a partner. He gives the clients professional management and review of their portfolio, while she focuses on financial planning and insurance.

“Without the client advisory council, I would have continued to inefficiently give clients a lower-level portfolio review. I wouldn’t have known anything was wrong, and they otherwise are too kind to tell me anything could have been improved,” Balenski said.

For more client engagement ideas

• View or read “Client engagement strategies” from an Annual Meeting presentation from Ed Tate
• Watch “SENSE-sational client service” from an Annual Meeting presentation from Bryon A. Holz, CLU, ChFC