We have all heard the sayings, “You get what you pay for” and “Free advice is worth what you paid for it.” My guess is your clients wouldn’t keep shopping with or going to a business where they didn’t like the products or how they’re treated, no matter how low the prices are. The same holds true in their selection of a financial advisor. Don’t use low costs to set yourself apart from other advisors. Instead, showcase your high value to clients and the benefits of working with a full-service firm like yours.
Why don’t people like a certain business, and how are you different?
1. Low value: Some businesses offer low prices, but they do a poor job. Have you found a really cheap place to get your shirts dry-cleaned or laundered, but then find the collars are dirty or they are not folded properly? You might live with the inconveniences for a while, but sooner or later you start to think, I would pay more if the job was done properly.
Full service: You work for a major firm that perhaps has won awards for product quality or service. If your client has a problem concerning their policies or investments, you take care of it.
2. Low value: I don’t have a personal relationship; I am just a number. Years ago, a bank president shared that complaint. He was unhappy with the service. He moved his account from one firm to another. No one ever called or got in touch asking what the problem was. He felt the firm did not care if they lost clients.
Full service: You know your clients. They choose to work with you and vice versa. You are emotionally invested in their success.
3. Low value: If I have a problem, getting support is impossible. You must have had the experience of calling the power company, bank or credit card company only to go through a telephone tree or sit on hold. You feel like no one is interested in solving your problem.
Full service: If someone calls your office, they get you or your assistant. Both of you want to keep the client happy. You follow up on their issue until you get a resolution.
4. Low value: Everything is done by computer. I booked a cabin on a cruise at a great price, but I think the cabin was assigned by computer. It was one cabin away from the (restricted section of) the bow. We had several days of rough weather. It was like sleeping on horseback.
Full service: You explain the pros and cons of the decision your client is considering. You offer your best advice before they make a decision. You help them avoid mistakes when possible.
5. Low value: The price is cheap, but the add-ons drive the cost up. Remember the old days of buying a computer or a flatscreen TV? The basic component was a bargain, but the cables or accessories you needed pushed the price up.
Full service: When you are investing, you explain both the direct and indirect costs before they make a decision.
6. Low value: The turnover is high. I never get the same person twice. You have shopped in stores or visited a restaurant where staff turnover is high. You always get someone different. You often need to explain exactly what you want, even if you always get the same thing.
Full service: You build long-term relationships with your clients. Many of your staff have worked with them for a long time too. You and they both know your clients, greet them warmly when they call and often mention personal details.
7. Low value: It takes a long time to get service. They don’t have adequate staffing. Have you shopped at a store where the line at the registers stretches forever? Have you noticed they have 10 cashier stations but only four are staffed? You think twice about waiting to buy the item you picked up.
Full service: If someone calls your office, they reach you or your assistant. If neither of you are available, the phone call rolls to a backup who answers personally.
8. Low value: They don’t quickly provide clients with needed documents. People get their tax reporting statements together this time of year. Some firms are great at getting them out and some are not.
Full service: You get client documentation out on time. If something doesn’t arrive, you have a way of generating a copy yourself.
9. Low value: They are not proactive. They never call me. Some firms give good service, up to a point. If you call them, they are good at answering your question. If you never call, neither do they. You get the feeling new products or ideas might be out there, but no one ever tells you.
Full service: You provide periodic reviews for your clients. You also touch base on a regular basis. You use multiple channels like your newsletter to share new ideas.
10. Low value: They don’t tell me if I can save money with a different product they carry. You have heard the expression, “Let the buyer beware.” You feel doing business with them is an adversarial relationship. You feel like asking, “What are you not telling me?”
Full service: Before making a recommendation, you consider the different products that meet your client’s need. You explain that you considered several and chose this one to recommend, offering to explain the others if they like.
When clients wonder why they pay for full service, the shortcomings of finding the cheapest provider often give the answer.
Bryce Sanders is president of Perceptive Business Solutions Inc. His book “Captivating the Wealthy Investor” is available on Amazon.
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