12 Steps to Stand Out
One of the most challenging questions I get from individuals and teams I coach is: How do I differentiate myself? Ive discussed this with hundreds of financial advisors and considered many elements of potential differentiation.
However, after speaking to one nationally recognized advisor, it appears it is in part even more basic than one might imagine. She said:
tYou dont come in the office from 8:15AM and leave at 4:15PM every day except Friday, when you take off.
tYou dont send out portfolio management reports by email with a note saying
if you have any questions, call me.
tYou care about your clients wealth more than your own and you care about who they and their family really are.
This certainly speaks to part of the differentiation question. Regardless of what you offer as solutions that are different than your competitors, you must work hard and execute well.
Pure and simple, the purpose of differentiation is to gain a sustainable edge over your competition. Differentiation does not have to be in absolute terms, but performance relative to competitors.
Most financial advisors will state they are focused on the client and have the expertise, experience, education, integrity, and performance standards to help their clients succeed. These characteristics however are barely the entry price for a quality financial advisor or wealth manager. Products, pricing, investment strategy and planning including asset allocation, risk assessment, performance monitoring and reporting, are for the most part, commodities and one can rarely gain more than a short lived competitive advantage from a solution or process in these areas.
So, back to the key question,
How do you differentiate yourself?Here are a eleven concepts, that if delivered holistically and consistently, can help you stand out.
Read the single-page version of this story here.
Images: Thinkstock
1. Personalization of Service
2. Your Service Commitment
Its my opinion that many, if not most, clients dont know the extent of services advisors provide on their behalf. The service level agreement functions as a written reminder, an informal contract. Dont forget the service commitments also become a two-way agreement so the client knows exactly what to expect and can measure you on living up to the plan a unique experience in most cases.
3. Summary Letters
- A thank you for being our client
- A meeting summary which would follow the agenda you used as well as any follow-up responsibilities of both your team and the client.
- A summary of the service feedback you received and comments as to what actions you are planning.
- When your next meeting will be.
- Optionally, an offer of service to friends, family, etc. based on the meeting.
4. Hold Clients Accountable
5. Certifications
Consider other designations such as the CIMA, CRPC, CPWA, etc. There are only a total of 6504 CIMA Certificants and 644 CPWA Certificants (as of June 2013). Imagine the differentiation you have with multiple designations.
6. Customized Portfolios
7. Team
8. Investing Competently: Have What It Takes
- An interest in investing.
- The horsepower to do the math.
- The knowledge base.
- The emotional discipline to execute faithfully
Bernstein says,
I expect no more than 10% of the population passes muster on each of the above points to succeed you need to string all four together. Thus, in a state of nature, just 0.01% of investors have what it takes.
The fact that you have the interests, facilities, knowledge, and discipline --and time--can be a differentiating factor.
9. Consultative Process
- Defining goals and executing and adhering to a long-term investment plan
- An ability to properly allocate and diversify the clients assets
- Developing an investment strategy and selecting appropriate investment managers
- An ability to monitor and make adjustments as necessary.
It can be a differentiating factor as you conduct your business in this manner. You follow a consultative process and have a buy and sell discipline that takes the emotion out of the process.
10. Know yourself
What makes you, you, and your firm, your firm?Many decades ago, I heard a sales trainer say,
when all else is the same, I make the difference.Good advice. Let the client know who you are, your values and belief system, and that of your firm. This is your value and your challenge, know yourself, be proud of what you do, care about yourself, your family, your firm, and mostly your client, and that will come across.
In addition, business strategist Kenichi Ohmae states,
If you are fighting with a competitor who has equal qualifications, effective and persistent execution in critical functional areas may be the only differentiating factor.
11. A Giving Approach
12. Consistency and Constancy
I also recognize that you have many clients and time and affordability can be a concern. However, these things are only mandatory for the clients you want to retain. Its like dentists say, you only have to floss the teeth you want to keep.
Your challenge: What is it about you that makes you a difference maker?