When the global economy changed a year or two ago and interest rates increased locally in New Zealand, it hit our clients hard. Then we also went to seven-day banking, which means even on weekends the bank processes payments. A lot of clients were not prepared for that and began missing insurance premiums. I had a 40% increase in arrears, which is not what you want as a financial advisor.
Before this happened, I had a process that worked well. When government regulations and the economy changed, though, the processes needed to change to reflect that. Also, for me, it’s all about the clients. So, I wanted to make sure my processes best addressed the clients’ current needs.
When clients are in arrears, I connect with those clients to find out how they’re doing. Maybe seven times out of 10 it’ll just be a credit card that needs to be changed, or they might have just not put enough money in their bills account. There will be some who really need that extra care though. By being available and focusing on those who might be a little bit more vulnerable, we’re able to add value.
To help me do this, part of my new process includes creating an executive summary with the push of a button so I can find out at any time how many clients are in arrears, which companies and so forth. Those clients who are financially vulnerable are scheduled for a meeting before I even have to think about it.
This allows me to feel like I’m in control of something that was quite messy for a while. When things are messy in your business, you’re not using your time well. Processes will help you use your time wisely and make a difference for both you and the clients.
Katrina Church is an 11-year MDRT member. She’s also a Top of the Table member. See more from her in “Strategies to prevent policy lapses in tough times.”
For more about adjusting to changes, watch
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