“How can I convince a prospective client that I’m better than other advisors in my field?” That’s a great question. One I get asked a lot. OK, here’s an insight for you . . .
Prospects decide to work with you — as their advisor — the same way they decide to buy a book. But before they buy the book, they ‘buy’ the book’s cover. Consider the following scenario:
You’re in a bookstore. You find two books on a topic you’re interested in. You want to buy one book, not two. Question: “How do you choose which book to buy?”
Do you read both books before you decide which one to buy? No. That’s not practical. So what does help you choose one book over another? Short answer? It’s the book’s cover!
Specifically, it’s the experience a cover offers you that helps you choose one book over the other.
If it’s sufficiently appealing, you’ll probably buy the book. If not, you’ll put it back on the shelf. That’s the very same process prospects use to decide to work with you . . . or, your competitor.
The Impression You Make is Key to Your Success with Prospects
Let’s be candid. Financial planning is an overcrowded and highly competitive field. Next to encountering a few ‘coaches’, attending any social event means you’ll find more than a couple of ‘financial advisors’. And we both know that’s being conservative.
Your Challenge: Standing Out . . . from Your Competitors
To people who are not in the financial planning field, every planner looks like all the rest.
At a minimum, you call yourself by a common term — ‘financial planner’. You probably have letters after your name on your business card — CFP, CLU, ChFC, etc.. You’re licensed by the various financial regulatory agencies, you hold membership in your professional associations locally and nationally and you have awards and accolades from your company or broker-dealer. So do all the other planners!
There’s really very little ‘difference’ between you and your competitors . . . as Joe or Jane Public perceives things.
So here’s the problem: You may be no worse than your competition. But, you’re also not seen as being any better than they are, either. Not good. For you!
What you SAY and DO . . . Differentiates You
Some years ago a major accounting firm hired the ‘father’ of modern differentiation — Ted Levitt, Professor Emeritus of the prestigious Harvard Business School. They asked him, “Tell us how to ‘differentiate’ our audit services from the audit services our competitors are offering”. Winning an audit contract with a major company — think Boeing, Apple, Google, etc. could bring in millions of dollars in fees — to the accounting firm that’s chosen to do the audit.
Levitt knew that to ‘stand out’, something must possess two qualities. First, it must be unique. In a me-too world, you won’t be noticed unless you’re different. Think of Waldo. He doesn’t stand out so it’s hard to find him, right? Second, it must also be beneficial. Something must offer a legitimate benefit — as the target audience defines ‘value’.
The problem is it’s not easy to sustainably differentiate a professional service –– like you offer.
If your offering is beneficial, competitors will copy you and you won’t be unique for long.
If your offering is unique and competitors aren’t copying you, maybe there’s really no benefit.
There’s your dilemma. Finding a way to sustain a ‘competitive edge’ . . . a point of differentiation for you . . . over time . . . is a very real challenge. It’s why you feel like Waldo more than you like!
The Secret To ‘Standing Out’ and ‘Kicking Your Competitors Butts’
Good News! Professor Levitt’s first requirement . . . being unique . . . is actually easy . . . for you. Last time I looked, there was no one else on Earth who is just like you. Heck, even your mother told you that, right? Listen to your mother! She’s right. You are totally and perfectly unique.
As for being beneficial, here’s how you address that issue. Manage your behavior! Why? Because there’s a direct connection between:
1. what you SAY and what you DO in front of a prospective client
2. how they perceive you as a preferred provider of financial expertise, advice and products
3. whether they’ll choose you (or, your competitor!) . . . when the ‘beauty contest’ is over
I use a simple graphic with my clients to illustrate how this works . . .
It all begins with / depends on your behavior.
Everything (EVERY Thing) you do and say — i. e. your behavior — creates an experience for your prospective client.
In social psychology, it’s well-known that your perception of someone reflects the cumulative effect of the behavioral impressions they offer you.
If I’m always late or always have a messy room, you tend to perceive me as undisciplined, uncaring, disorganized, lazy, etc. That may not be true. But because that’s your subjective perception of me, that’s your reality of me and you’ll tend to behave accordingly toward me.
Pulling It All Together
OK, so how do you use these insights to help your prospective clients perceive you as the advisor they’d prefer to work with . . . assuming they’re ready to do so . . . and all other things are ‘essentially equal’?
First, learn what your ideal client wants to find in an advisor
Leavitt learned audit clients really didn’t care about the audit. It was a necessary evil — like undergoing a colonoscopy after age 50. What they really wanted / cared about was to work with a ‘business advisor‘ whose firm could also do their audit.
AHA! It was never about the audit, it was always about the relationship the client wanted!
The best way to learn what your prospects want in an advisor is simple. Ask your best clients this question:
“Why did you choose ME . . . over other planners you were aware of / considering using?”
You may hear: “You knew about . . . “, “You were thorough”, You listened well”, “You made me feel comfortable”, etc. These are perceptions . . . of you . . . expected by your prospects.
Once you learn the answer to the question, “Why me?”. . . you’ll know what your prospects are looking for in an advisor in your field. Then, I urge you to identify the ‘Top 3’ most commonly cited answers you hear.
When you know what makes you a preferred provider, you can create the experience (of you) prospects will use to decide if you’re the advisor they want. Yes, it’s an Open Book Test!
RULE:
“3 Behavioral Impressions –––> 1 Subjective Perception”
It takes 3 behavioral impressions to cement a single perception (AKA ‘truth’ or ‘reality) about you with a prospect. If you create 3 behavioral impressions for each of the Top 3 perceptions that educators want in their financial advisor and, all things being equal, you’ll have a decided edge over any alleged competitor! See? Amazingly simple.
Second, choose what you must SAY and DO to validate the Top 3 perceptions clients want
Your current clients were once your prospects. They were looking for someone they could feel comfortable trusting to help them manage their financial affairs. Behaving like what your clients wanted from you is the key to presenting your ‘best side’ to prospects in the future.
For example, let’s say you work with educators. Your best clients told you, “We chose you because you seemed to know a lot about teachers” If so, you may want to communicate your expertise by asking a question or sharing an insight. e.g. “Many of the teachers I work with are not aware of what their maximum contribution to a tax-deferred annuity program is for this year. Have you determined what you’re allowed to contribute and are you planning to take full advantage of that amount?”
That’s one (1) behavioral impression! If you make three (3) similar behavioral impressions during an initial meeting with a prospective educator client, they’ll form the perception that you’re someone who . . . specializes in working with educators!
Repeat that process with the #2 and #3 perceptions educators use to choose . . . their financial advisor . . . and you’ll end up not only standing out in your initial meetings, you’ll end up converting more prospects into clients, too.
POINT:
People buy books by their covers and advisors / planners by their behaviors!
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BILL DOERR, CCO
Your Contact Network IS a Money Tree
Management, Marketing, Method, Planning, PR / Word-of-Mouth, Preferral Prospecting® SystemThe more people who ‘know, like and trust’ you, the better. But do you really know why?
It centers around the value of building a network of ‘raving fans’ — people who know, like and trust you.
Doing that is not only easy, but motivational as well.
Your Network IS a ‘Money Tree’
If you’re a solo-practitioner, there’s a practical limitation on the number of business relationships you can cultivate. Despite what you might like to believe, it’s difficult to maintain a quality relationship with more than a few hundred individuals.
In fact, an English researcher named Robin Dunbar did research that revealed how most people can only maintain a viable relationship with around 150 people. Thus, the ‘Dunbar Number‘ of 150 people refers to the number of people you can maintain an active relationship with over time. And, by ‘active’ I mean they’ll respond to you when you call or contact them.
If you look at the average person’s network connections on Linkedin, they probably have a few million ‘close, personal connections’. The fact is . . . most of your online ‘connections’ don’t know you exist and couldn’t pick you out of a police line-up if they had to (and why would you be in a police line-up, anyway?).
I’m not putting down social network connections. But the reality is, absent a personal effort to cultivate an awareness of you and build a position for you / your brand, you’re not likely to generate new clients from social network connections. Doubt that? OK, in the last 12 months, how many new clients did you generate who only know you from Linkedin, Facebook, Google + or the like? See. I rest my case.
What’s a Better Approach? Cultivate Your Own Network!
Again, there are very good reasons to be active on social media — especially Linkedin. But generating new revenues from people whom you have not connected with in a meaningful and ongoing way . . . is not one of them.
What is better is to identify people who are likely to buy what you offer and/or likely to refer you to others who can? In a word, ‘Cultivation’.
Cultivation is a KEY Function for Growing Your Clientele
Fueling . . . generating introductions to people who MAY be able to buy or refer you
Qualifying . . . learning if someone can buy and/or refer you to others who can
Cultivating . . . building top-of-mind awareness and preference for the brand called Y-O-U
Converting . . . helping someone make a decision to act on your recommendations
Servicing . . . keeping someone happy to work with and spend money with you
Managing . . . operating your practice in a way that consistently exceeds clients’ expectations
Once you’ve found someone who’s able to buy what you offer and/or refer you to other people who can, you’ll want to cultivate a relationship with them. This helps you build the ‘know, like and trust’ factor you need to be thought of first and favorably when (not if) a need arises for your problem-solving expertise, services and products.
To keep this function simple, all you want to do is keep-in-touch and top-of-mind with your qualified people. Reconnecting with them to remind them you exist . . . with relevance, respect and regularity . . . is all you need to do.
This calls for a very simple ‘plan’. For example, you can build a Cultivation Plan using any or all of the following means of keeping-in-touch and top-of-mind with your ‘qualified’ connections:
1. a newsletter
2. a personal, handwritten note of appreciation
3. a phone call to ‘touch base’
4. a ‘Thinking of You’ email with a link to an article of relevance to your contact
5. an invitation to reconnect over lunch or coffee with 2 other people-of-interest
6. an introduction to a person of interest or value
7. a referral to someone you know who might do business with your contact
8. an item-of-value that your contact would likely appreciate receiving
You don’t have to incorporate all these different activities. Nor do you need to do them each month. But you do need to choose some of them and use them consistently and conscientiously.
Why 240 People . . . Is Your Magic Number
Earlier, I said it’s not practical to attempt to cultivate more than 150 – 250 people on a regular basis. But if you do cultivate 240 people, you’ll see a lot of opportunities to generate clients, revenues and referrals. Here’s how . . .
If you’re cultivating 240 people, you’re re-calling 80 people a month. Unfortunately, between your schedule and theirs you aren’t going to reach 50% of them. No problem. They’ll remain in your cultivation system and you’ll continue to cultivate them as your plan suggests. Yes, you’ll call them again in another 90 days. So you’re down to 40 people.
Of the 40 people you do reach, expect that around 50% will thank you for calling but they’re not going to have a need you can address or know someone they can refer you to meet. It’s OK. They go back into the cultivation pool as well.
Now you’re down to roughly 20 people. A couple are likely to tell you, “Let’s stop”. They (or, you) will decide that they’ll never buy from or refer to you. It’s over. It’s OK. You’ll live. You remove them from your cultivation system and make room for new, more viable contacts to go into it. It all works out in the end.
Of the remaining people you do reach, you’ll either find a reason to meet or you’ll generate some referrals to people they know who fits the profile of the kind of person who can best understand, value, desire and afford your services. It’s all good.
Now remember, these are WARM calls . . . to people who know, like and trust you. Each one is growing steadily closer to the next time they need to buy what you do — lifetime value of a client, remember?
So how many discussions do you need to generate an open case? How many open cases can you turn into a decision meeting? How many decision meetings do you need to close a single sale? What’s your average sale look like?
Now, do you see why you want to cultivate qualified people? It reinforces your relationship with key people for your practice, it makes your life easier, your revenues greater and, best of all, more predictable, too.
POINT:
Cultivating Key Relationships . . . helps generate revenues easily, predictably and significantly
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Planning . . . To Get More Referrals in 2015
Method, Planning, Preferral Prospecting® SystemFew outcomes of significance — like generating more and better referrals for your practice — requiring the coordination of time, skills, efforts and people happen “by accident”. Usually, planning is involved.
The Moon Landing, the Apollo 13 recovery, America’s declaration of independence from England, your having the best year year ever due to generating better referrals and introductions than ever . . . are examples of what’s possible when you make plans to make something important happen for you and your practice.
Referrals Don’t Happen By Themselves!
It doesn’t matter what you’ve done in the past about generating referrals for yourself. What you want to remember is that you’ll never be as good at generating high-quality referrals today as you’ll be tomorrow . . . assuming, of course, that’s important to you in 2015.
One of the keys to improving the quality and increasing the quantity of your referrals and introductions is the use of a SYSTEM. In The Preferral Prospecting® System we use to coach advisors, there are four (4) key elements of a referral system that, used correctly, consistently and conscientiously can significantly improve the quality and increase the quantity of revenue-building connections, introductions and referrals your practice needs to grow:
1. Profile . . . of the kind of person who can best understand, desire and afford your services
2. Sources . . . people who can introduce you to people they know who fit your Profile
3. Method . . . what you must DO and SAY to generate introductions and referrals
4. Action Plan . . . the daily activities you must take to use our system and see results
You Can Make 2015 Your Best Year Ever . . . IF . . . You Plan To Do So
When I was a consultant for LIMRA International, the esteemed trade association for the financial services industry in the US and around the world, I was taught a powerful planning process by Gordon A. Kratz, CLU who was a Director in the Company Operations division. It was based on a simple process for planning: “DOME”.
D . . . Diagnosis is the first thing you want to do.
Some call it ‘situational assessment’. Basically it means taking stock of what you have (and, what you don’t have!) to help you achieve your BHAG — your ‘Big, Hairy, Audacious Goals’. But wait. You don’ t set goals here in this step. That comes next.
O . . bjective is the second step.
This is scary easy to screw up –– and your plans and results will show it if you do!
This step is not where you set a goal to “Increase sales by 25% in 2015”. This is where you set goals to reduce or eliminate any factor that’s limiting your ability to achieve that kind of goal.
Let’s get away from referrals for a moment. Let’s say your kid, in middle school, announces, “I want to be a doctor when I grow up”. That’s a BHAG, isn’t it? It’s laudable. But not helpful. What’s better? Smaller goals! Like getting A’s in math, chemistry, physics, biology, etc. Why? Because if those goals are NOT achieved, your kid won’t be qualified to get into a decent pre-med program, apply to any medical school and, if he or she is able to stay ‘on course’ over many years . . . become a medical doctor.
M . . . Method is the third step. This is where the ‘nitty-gritty’ actions are chosen and coordinated into do-able Action Plans that, when completed, mean the goals are accomplished and the BHAG is more likely to be realized, as well. My buddy in high school wanted to be a doctor. Only problem, he sucked at math. Fortunately, his family could afford to send him to a prep school for 2 more years. That action built the math and science skills he needed to not only get into a good university but made him academically able to handle the rigors of a pre-med course of studies and qualify, eventually, to apply to medical school. Today, he’s a radiologist and doing very well. But if he didn’t overcome his inadequacies in math and science, he might be doing something other than practicing medicine later in life.
E . . . Evaluation is the last step. This is where you assess your progress-to-goal on a regular basis. It’s really no different that your Diagnosis step, EXCEPT . . . this is done, periodically, AFTER your plan is underway.
Did you know the Apollo astronauts were only ‘on course’ during their lunar missions about 2% of the time. Shocking, isn’t it? BUT . . . by evaluating if they were ‘on course’ regularly and frequently, they were able to make minor course corrections — fire their guidance rockets for a few seconds here and there — when they weren’t. As a result, they achieved their Big Hairy Audacious Goal . . . they successfully went to the moon and returned safely.
How This Applies to You Generating More Referrals . . . in 2015
Knowing the process of planning to make things happen is one thing. Actually using it to reach the Big Hairy Audacious Goals you have for your tax or financial planning practice is a little more involved. Not impossible. Just easier said than done.
Regardless, what I want you to take away from this post is that if you want more / better referrals in 2015, you must PLAN to make that happen. And not just set a fluffy goal like, “Get more referrals than I did in 2014”. No, you must assess if you have a system for generating referrals and if it’s working for you (assuming you’re also using it!). If not, THAT . . . is a legitimate factor that will limit your ability to generate the quantity and quality of referrals and introductions in 2015 that you want. So THAT . . . calls for a ‘goal’ to eliminate that situation.
Specifically, I urge you to set a goal to find, use and benefit from a proven system for generating referrals by design, not accident.
POINT:
Make a goal . . . to find and use a proven system for generating referrals in 2015
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How To Avoid Referral Partners Who Can’t Help You
Preferral Prospecting® System, RelationshipsHere’s a dirty little secret hiding in plain sight . . . everyone can’t (or, won’t) connect you to people in their circles who can buy what you do and/or refer you to others who can.
I know. It’s not easy to accept, is it? After all, you want to believe that everyone and anyone not only CAN help you connect with qualified prospects, but they WILL do so. Happily and readily.
RINGGG!! RINGGG!! Wake- up call! That’s not the way it is.
The Right Person Makes Referrals More Likely!
When you take the time and make the effort to identify, approach and gain the commitment of the right kind of person, you will see a number of benefits:
1. You’ll generate more introductions and receive better referrals
2. You’ll grow your base of connections quickly and easily
3. You’ll meet quality people who don’t waste your time
4. You’ll enjoy a consistent flow of introductions and referrals
5. You’ll close business sooner rather than later
I could on (and, on) but I think you get the basic idea. Having the right kind of person to work with will help you generate more business, more quickly and far more easily than if you don’t. It’s that simple.
Want To Meet More People, By Referral?
One key to generating more referrals than you can handle (a problem you’d love to have, right!) is to work ONLY with people and partners who can help you make your goal of working primarily by referral . . . a reality.
This means you must seek introductions and referrals ONLY from someone who:
1. Respects you, professionally
2. Knows the kind of people you want to meet (i.e. fit your Preferral Profile)
3. Has potency with the people you want to meet from their network
4. Will introduce you to these people — if approached properly
In addition, the kind of person you want as a Connection or Preferral Partner must also:
5. Offer a complementary, non-competitive service to the same target market/s you are
6. Be able to receive introductions to people you know who fit their Preferral Profile
7. Be actively seeking to grow their practice . . . i.e. they’re not ‘gliding into retirement’
Of course, the absolutely-you-can’t-do-jack-without-it factor is :::drum roll::: TRUST.
Without trust, no one will introduce or refer you to their contacts because the RISK of losing their Relationship Capital is simply too great. So whatever else you do, establish trust, first.
POINT:
Knowing who to avoid, makes it easier to identify people who can help you generate referrals
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Don’t Blow Your Client Relationship!
Method, PR / Word-of-Mouth, Preferred Advisor, Relationships, TestimonialsApple Computers and I Have a Relationship
I’m a big fan(atic) of Apple computers. I bought my first Mac — a little 128K model while working on a project as a consultant at LIMRA — in 1984. I finished the project so far ahead of schedule that I got a ‘bonus’ check. That check paid for my new ‘personal’ computer. I was hooked on Apple. Our ‘relationship’ has stood the test of some 30 years. Apple computers and I are a ‘thing’.
Recently, Apple rolled out it’s latest operating system version called ‘Yosemite’. It reflected a number of changes from prior O/S offerings. Some were very substantial. Many were, as expected, pretty cool.
One of the applications that comes with an Apple iOS is called, ‘Keynote’. This is Apple’s answer to PowerPoint. And, while both are good. I prefer to use Keynote. It’s elegance (and, my skill at using it) makes it my presentation software of choice.
Keynote . . . is a ‘Consequential Damage’ of Yosemite
Unfortunately, the new Keynote / Yosemite pairing has resulted in a major problem. For me.
Keynote’s got a bug that Apple created with the launch of its Yosemite operating system. Even worse, Apple seems unable and/or insouciant to address this problem.
I used to create Keynote ‘slideshows’, added audio (voice narration) and mixed both into an MP4 (movie) file I could upload, distribute, etc. NO MORE! Now, audio / voice-over recordings are mysteriously ‘dropped’ from an MP4 after about 45 seconds. WTH?
“Apple . . . We Have a Problem”
I called Apple’s tech people. They’re pretty top-notch in my experience. Unfortunately, I was told by the tech person I spoke with that the “dropped audio in Keynote” is a problem that Apple knew would happen, knows is happening and . . . is (currently) doing nothing to correct it. Seriously?
This is a big issue as it means a lot of time and effort will be required to produce a similar result — using non-Apple software I might add! This cuts into my profit-ability and adds a ‘hassle’ factor that’s growing by the moment.
I don’t know which is worse. Apple’s knowingly making changes that compromise what loyal fans have come to count on from their relationship with Apple, or . . . Apple’s apparent dismissal of client concerns once they’re voiced. Either way, it’s not going to build trust between Apple and it’s community of fans. Quite the opposite.
Without the ability to do what has been done for many years, life is changing. And, not for the better. Thank you, Apple, Inc. I wonder what Steve Jobs would have to say about this egregious insult to the long-standing expectations of loyal fans . . . like me?
What’s Important to Learn From All This
Any relationship of value . . . and I believe a ‘client’ relationship qualifies for this . . . must be regarded as a fiduciary relationship. If you’re holding yourself out as a ‘trusted’ advisor, it means you’re worthy of your client’s trust, right?
The problem is, ‘trust’ is a fragile thing. It’s a challenge to establish it with a new relationship. It’s also a challenge to maintain it once you have it with an existing relationship. Trust . . . is the ‘glue’ that binds a client to you and you to a client. But like any bond, it can be broken. To the detriment of all parties involved.
POINT:
Trust . . . is hard to earn, and so easy to lose. Work hard to get it. Even harder to keep it!
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Packaging Your Service (part 5)
Packaging, UncategorizedConstructing Your (Intangible Service) Package
Today, we’re going to delve into what packaging your service really demands. It may help if you keep “The Pure Powder Skiing Escape” from the 1/8/2013 post in mind as we do this.
Building Your Package . . . Steps 3 – 4 of 9
In this post, I’m going to explain Steps 3 and 4 of the 9 steps shared in part 3. With these insights, creating a ‘package’ for your service will become much much easier!
Step 3: IDENTIFY . . . Specific PAIN/s of Your Ideal Client
As important as it is to have an ULTIMATE benefit or goal in mind, in this step you drill down a bit more and get a lot more specific about what issues, frustrations, concerns, irritations, etc. your service package might address.
When you consider your Ideal Client (remember, “Harry”?) you’ll quickly realize that he or she may want a ‘big’ beneficial outcome from you but that may require achieving several smaller component goals. For example, a financial planner’s client may want to ‘retire with an income that supports a decent lifestyle’. But making that bigger goal possible may require more specific goals to happen. Such as:
• Having a guaranteed income in the event a client is unable to work
• Avoiding the catastrophic loss a long-term illness suggests
• Tax planning to legally reduce taxes and maximize income
• etc. etc.
Each of these ‘component’ goals suggest different ‘packages’ of applied expertise that, in total, contribute to producing the ultimate benefit a client desires — to retire with sufficient income to support a decent lifestyle.
POINT:
Build a package for EACH specific outcome that a client wants from you.
Step 4: REFINE . . . Your BENEFIT for Specific Groups of Your Ideal Clients
In step 3 (above) you saw how an ‘ultimate’ benefit is actually made up of one or more ‘supporting’ benefits. But when you consider specifically WHO you’re seeking to attract with your package, you’ll begin to see how each group of clients wants to enjoy your ultimate benefit . . . in their own unique way.
Remember the “Pure Powder Skiing Escape”? That’s a specific package for a specific type of client — the corporate traveler who wants a ‘civilian’ holiday where skiing is the ‘main event’.
While the same level of amenities is still desired by the travel agency’s business traveler client, this package addresses how this same client wants to get away from it all on their vacation vs. a business trip. If you go back and review what this business-traveler-on-vacation package offers, you’ll see it’s specific in WHAT it does but is still mindful of WHO is going to get to enjoy it.
In this step, you want to consider your Ideal Client and the Ultimate Benefit they want but . . . choose a specific benefit that contributes to that ultimate benefit and build your package to provide that outcome or result for your client.
POINT:
Every package is built to produce a specific benefit that contributes to and is supportive of the ultimate benefit a client is seeking from you and your problem-solving expertise.
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