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Understanding the client – What’s your proposition?

Proposition

Here are three initial steps to determining your proposition:

  1. Reflect on your strategic objective (see the previous Business Planning module) and ideal target market.
  2. Identify the services you currently have (and would like) to offer your clients.
  3. Once you’ve worked out the cost of your services, create a desired service package for each client segment.

Consider the following when developing the new list of services:

  • The appropriate client contact points and requirements for each stage of the ‘client service life cycle’. For example, keep in mind the need to have client contact points for the following areas: financial planning, advice and product sales, maintenance and change in circumstances, ongoing relationships.
  • The need to focus on both new and existing clients and the corresponding services required.
  • Mandatory service requirements as dictated by regulatory compliance, for example compliance disclosures, financial planning process and annual reviews.
  • Optional extras, for example additional face-to-face time and communications such as client newsletters, brand building, educational or expectation-setting communications.
  • Relationship activities - these are especially important for the top 20% clients as they enhance and develop ongoing, valued relationships.

Increasing productivity and efficiency in the business are areas that will constantly be referred to during the segmentation process.

Please see below for some ideas on how your firm’s skills and resources could be focused to ensure optimum productivity and efficiency:

Financial adviser

Paraplanner

New  business

Client service

Any aspect relating to advice and product sales.

 

Create new business packs based on the various client services and products offered by the business – including relevant compliance documentation.

Arrange functions and seminars.

Establish or redefine client relationships.

Prepare documentation for client reviews.

     

Any aspect relating to advice and product sales.

 

Create new business packs based on the various client services and products offered by the business – including relevant compliance documentation.

Arrange functions and seminars.

Gather/update clients’ information.

 

Gather/update clients’ information.

 

Analyse and assess clients’ financial statuses.

     
Develop financial planning recommendations.      
Present financial planning recommendations to clients.
Face-to-face client reviews.
Develop financial planning recommendations. Implement financial planning for clients.  
Prepare documentation for client reviews. Confirm ‘next reviews’. Produce client review reports.

Return to the whole process 

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Support material

Business transition: the importance of understanding the customer

Business transition:

the importance of understanding the customer. By Mimi Pienaar

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Download the complete understanding the client  module as a PDF

Understand client

  the five key areas    

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