Three keys to business success
RDR is separating the best from the rest – so how do you ensure your business is in the former category not the latter? Start by making certain you have three fundamental differentiators in place, says Brett Davidson of FPAdvance.
What is separating the best from the rest since the introduction of the post-RDR environment? What do you have to know for your business to be performing? There are three clear differentiators:
1. You know exactly which client segments you work for and what they want .
If your idea of defining your target market is a statement like “we work with anyone that needs our service and values what we do” then I’m sorry you don’t know your target market. And that being the case I can guess the profit margins in your business and they won’t be good.
It’s imperative that you know exactly whom you work for and what their top five issues or concerns are.
Why do you need to know this stuff?
Well, how can you create a proposition that addresses your clients’ key issues if you don’t know what those issues are?
Niche is good. General is bad.
2. You regularly remind people what you’ve done for them lately
Every piece of new business that you write is now far less secure than business you have written in the past. At any point clients can turn off your ongoing remuneration. With the media likely to flog this to death week after week and year after year your clients will inevitably be faced with a choice: Stay with you or save the cash?
And if they can’t quickly remember the benefits of what you do for them it’s easy to guess what some of them will do.
At every review meeting it is imperative that you remind people what you’ve done for them lately. Show them the wins that you’ve generated, in cash wherever possible.
Also, what is your contact strategy between annual review dates? Once a year isn’t enough to be touching the client so you’ll need to develop an effective communications strategy, touching your best clients 10-12 times per year.
3. You (or your advisers) can run amazing first meetings
If you can’t run an amazing first meeting with new clients you will be up against it from the outset. Average first meetings mean:
• You will not be able to charge a fee for your initial analysis and recommendations – this is bad because now you are doing weeks of work for free. Quality firms can charge for their initial work after the first meeting because they create a great first impression and a deeper engagement with the prospective client.
• A lower closing rate – and that means acquiring new clients is a lot more expensive for you than it is for your competitors.
• You only pick up the low hanging fruit, not the whole fruit tree. A poor first meeting usually involves you doing too much of the talking and not enough asking great questions. It is the great questions that let the client sell themselves on the need for your complete service. If you haven’t done so already it’s time to get your house in order in the post RDR world.
For more on FPAdvance go to: www.fpadvance.com
or follow Brett on Twitter: @brettdavidson