The Last Piece of the Referral Puzzle

Many advisors ask me what it takes to be refer-able.  My response is simple, it all comes down to trust.  Clients and strategic partners have to trust that endorsing you will reflect positively on themselves.  But what does that really mean, and how can you predictably and methodically create trust?  As part of our Pareto System coaching process, we talk in detail about how the 4 C’s of Trust can be implemented and how it will impact your refer-ability:

But many elite advisors who deploy the 4 C’s are still underwhelmed with the quality and quantity of referrals they see.  And the reason is simple – while they have certainly laid down a foundation for refer-ability, they can still only find themselves in the red-zone but not in the promised-land.  The last piece of the puzzle is that they have to create awareness for the concept of referrals in their on-going Communications with their clients and rain makers.

A Reluctance to Communicate

Again, just because you are referable because of your professional conduct, doesn’t mean that it will occur to your clients that they should introduce a friend to you.  You have to continually Communicate your value to them so that they make the connection.  What’s interesting is that many top advisors are reluctant to ask for a referral in part because of a subconscious fear of rejection, but primarily because they don’t want to put their clients on the spot or potentially undermine the trust they have built.  So they don’t go there.  They don’t bring it up and simply hope for the best.

But I’ll remind you that you don’t actually need to ask for referrals.  As you know by now, it is far more professional to position the concept of a referral as service you are providing to your clients rather than as a favor you are asking of your clients.  You don’t need an elevator speech or special tactics to sell your clients on the concept of referring someone to you.

Simply explain that you will make yourself available as a sounding board, explain why you do it and outline a simple process that your client can follow to make an introduction.

Click the video to the right to watch a video of me outlining this approach.  Remember, it is much easier for a client to introduce a client to a consultant with a process than it is to a salesperson with a sales quota.

Continued success!

The original article appeared at: The 5th C

An Effective Approach for Attracting Soon-to-be Retired Clients

You have probably seen in the media, various mutual fund and asset management firms on both sides of the border referencing how many people retire every day.  It has been estimated that in America, 10,000 people enter retirement with each passing day.  That is a staggering number.  Clearly demographic realities create all kinds of new business opportunities, but the one that excites me most applies to financial advisors who are addressing this with a client acquisition solution.

Having Fun While Being Productive

As you can imagine, during my travels as a speaker and consultant I come across countless examples of business development strategies being used by financial advisors to attract retired or soon-to-be retiring clients.  Without question, the most predictable and cost effective – not to mention enjoyable – is hosting a retirement party for a newly retired client.

The logistical reality is pretty straight ahead.  When the advisor learns about an upcoming client retirement, he or she quietly contacts the client’s spouse or significant other and offers to host the party and cover everything.  The spouse is responsible for invitations and RSVP’s and the advisor is responsible for pulling the party together handing a turnkey event to the spouse.

The Law of Environment

As you know, people at retirement age tend to hang out with, and live near, people pretty much like themselves.  This type of event creates a captive environment with high-quality MVP’s (Most Valuable Prospects).  Because it’s a low key, fun and celebratory event, people are open and casual.  Once the word gets out to their friends that you were the driving force behind the event, the goodwill and intrigue will create a frenzy of interest towards you.

When people start asking “So I hear that you are Bob’s financial advisor, so what do you think about these markets?” avoid the rabbit-hole of fortune telling, or using the usual data-dumping elevator speech.  Instead of making predictions, or describing yourself with a bland and interchangeable moniker like “We are Retirement Specialists”, segue subtly into your value proposition and branding strategy using a hook and well packaged call to action:

Remember, as a professional, you are trying to attract new clients not chase them. When you explain that you have a process, you are positioned as an expert rather than as a salesperson.

Dig Your Well Before You’re Thirsty

The other benefit of this approach is that you also will meet others within your client’s family tree.  Again, in a party type atmosphere people closely connected to your retiring client get to see you, and connect with you, building important predisposition and mindshare.  The children of your client’s will be inheriting these assets at some point down the road.  If you plan on being in the business for several years and you are striving to establish 2nd, 3rd and even 4th generation clients, events like this can serve as a Trojan horse.  So follow the advice of Confucius whose timeless metaphor about digging your well is sage beyond compare.

Something to Look Forward to

The marketplace will pay you more to entertain it than it will to educate it.”
-Warren Buffet

Clearly this is only one of the several types of events you can do to put you in a room with soon-to-be-retired and other prospective clients.  Medicare themed seminars, and other educational events are common as well.  And not to trivialize the value of education, I’m reminded by Warren Buffet’s quote “The marketplace will pay you more to entertain it than it will to educate it.”  Events that people can get excited about are the events that get moved up their priority list.  Time is valuable and the options for how to spend time are countless.  Do you really want to do another event that caters to the plate-lickers of the world?  It’s like I said to an advisor last week who was asking my opinion about a lunch and learn seminar he was thinking of holding for clients and prospects.  It sounded pretty boring to be candid.  I said to him, “I think your clients hire you to make all that stuff go away.  They like knowing that you know what you’re doing but they don’t need to know what you know.  Why not call your event a bar-b-que and that way good quality people will actually show up.”

Continued Success!

The original article appeared at: 10,000 is a Big Number

Creating an Experience that is Memorable and Refer-able

When it comes to practice management, a lot of attention gets placed on the client experience.  Using an agenda, having a fit-process, on-boarding a client systematically, and deploying a service matrix, are just a few of the essentials that we help advisors put into action to project professionalism and strengthen their client relationships.  And while all of those are in fact essential, one of the most overlooked and often trivialized components of the client experience is how your office, and the time your clients spend there, ultimately makes them feel about you.

I’ve had several consultations over the past couple of months with top advisors who have shared with me some of the creative minor adjustments they’ve made to their office environments that have led to major improvements in terms of client feedback, loyalty, empowerment and refer-ability.

The office experience you create is an extension of your personal branding.  It helps clients connect with you on a deeper, even subconscious, level.  Sure, consistent service, expectation management, and performance will always be primary factors when it comes to long term relationships, but you still have many other factors you can utilize to help insulate your relationships from the many things outside your control. Again, how clients feel about you, especially when they meet with you in your office, contributes to their sense of belonging which can contribute greatly to refer-ability.  And I can also tell you this, many – and I mean several – advisors have told me that their clients mention how much they love their advisor’s office environment and team culture when they are describing that advisor to a friend.

Your Waiting Area

Think of your top 20 clients.  Have you identified any commonalities in terms of their interests?  They reveal F.O.R.M. information to you over time (Family, Occupation, Recreation, Money).  Ensure that you have 5 or 10 specific and current magazines neatly displayed that they can peruse in the 10 minutes they may wait for you when they arrive.  Large coffee table books covering the same interests such as wine, cooking, travel, art, music, dogs and other topics should be available too.

But that is just the start.  Do you serve an excellent array of top quality beverages to your clients?  Do you know what their preferences are (stemming from their F.O.R.M. profile) in advance of their arrival, and is it ready for them?  Perhaps a photo album with pictures of the events, charitable causes, and local athletes you sponsor?

Make the Initial Impression a Memorable One

Several advisors have told me that in addition to a well-stocked beverage fridge, additional great investments they’ve made include a quality cappuccino machine, and small pastry oven.  Freshly made croissants, cookies and coffee create a nice aroma, and staff members look forward to showing off their preparation skills.

Others who prefer to keep it simple, yet still tap into the aromatherapy, go to Tommy Bahama or a Bath and Body store to ensure the scent in the office is pleasant.  One advisor told me that his staff changes the scent seasonally – pine in Q4, the tropics in Q1, florals in Q2, and a summer scent in Q3.

Of course the key here is subtlety and understatement.  Scents especially can be over the top and come on too strongly, so you want to find that appropriate level.

The Restroom

Or as we call them in Canada, the washroom, should be immaculate on all levels.  This isn’t always possible if you have common facilities in your office space but I can tell you that many advisors inform me that they spare no expense to ensure the visit to that room is a positive experience.  Make a statement with the quality of supplies, the tasteful approach to decor and it will be appreciated.  The bar has been lowered to such a degree over the years that it’s not that hard to stand out anymore.  Ensure your team is empowered to make the effort, especially in this area.

Your Meeting Room

If you have a separate meeting room from your own office, I encourage you to create a den-like atmosphere that is again subtle and understated, yet warm and comfortable.  I’ve convinced many advisors who were going to spend gobs of money to renovate and modernize their rented office space, to instead acquire quality vintage furnishings, actual art instead of bland wall-decor, area rugs and lamps to create a nicer vibe.  Rather than spending the money on leasehold improvements and boring corporate furniture, they instead acquired tasteful assets that belong to them, hold their value, are portable and add far more character and personality to the office environment.

Many other advisors have run with this and have acquired office decor, accent pieces, and artwork from the various countries they’ve traveled to in order to spur on conversations with clients about what they ultimately want to use their investment income for – new life experiences and accomplishments.

Your Personal Office

I’ve been in countless offices of financial advisors over the years.  The ones that stand out the most are those that reflected the interests and passions of the advisor and created an ambience that said “I am enjoying my life and I love coming to work.”  It may sound corny and flowery, but many advisors’ offices lack personality and warmth and clients pick up on the blandness even if subconsciously.  Again, you’re not trying to impress people, you are just trying to impress upon them that your sense of purpose, your personal legacy, and overall fulfillment in life, is being achieved.

What kind of experience do your clients get when they walk through your doors?

If you’ve ever walked into a spa, you already know they attempt to put you into a different state the moment you walk through the doors.  The music, the aroma, the flowers and textures, are all in place to change your mindset and create a calm, serene and memorable experience.  They want to you to tune out the world and slow life down a bit so that you can savour the moment.

What kind of experience do your clients get when they walk through your doors?  You’ve been walking through those doors for years – sometimes in a trance – and you might be oblivious to the energy and impression it creates.  Try to see it through their eyes and experience how their senses are impacted, and you will subtly strengthen your relationships even further.  You and your team might even enjoy the environment a little more as well.

Continued Success!

The original article appeared at: The Multi-Sensory Office

Join David Miller , Co-CEO of Pareto Platform and co-author of the best-selling book “Breakthrough Business Development”, as he and his colleague Stewart Vanderheide conduct a webinar outlining how CRM can improve a financial advisor’s ability to:

• On-board clients using a consistent process
• Deploy a service matrix to competitor-proof clients
• Engage strategic partners and circles of influence
• Attract a higher quality and quantity of referrals
• Create accountability amongst team members
• Consistently DRIP of affluent prospective clients
• Run your business instead of it running you
• Be compliant while increasing the predictability of the business
• Create automated processes driven by an integrated procedures manual

This 40 minute webinar will feature proven, actionable strategies and concepts that are being used by some of the most effective financial advisors in the business.  Built on the Microsoft Dynamics CRM chassis, the Pareto Platform CRM has a full suite of field-tested practice management and business development procedures as well as an intuitive and actionable virtual coaching solution.

Click to register

The original article appeared at: Free Webinar: Increasing Productivity with CRM – May 28th

Bigger isn’t Better

While it may seem counter-intuitive to some, many of our coaching clients have achieved significant breakthroughs in their respective businesses by disassociating from certain clients who were no longer a good fit.  In these cases, the advisors’ businesses simply grew too big – well beyond their effective capacity – and they sized down to ensure their core/ideal clients received the service levels they deserved.

Of course, some advisors are naturally reluctant to part with any clients due in part to the income they bring, or the length of time they have been together.  But if you have too many clients, or they do not very well meet your ideal client profile, you are doing them – and yourself – a disservice by keeping them. 

This is not about firing clients either.  Be professional and gracefully bow out of relationships where the chemistry is poor, or the hassle factor is high. When you meet to discuss this, again outline to them that you are not all things to all people, but a specialist who is all things to some people.  Explain that you will have a hard time providing them the service they deserve, and that you have identified some other advisors that are a better fit with greater capacity, and would be pleased to make the introduction.

You will, frankly, be amazed at the outcome of this professional exchange. Either they will agree to move on effortlessly, or they will fight to stay on board with you by better matching your ideal client profile (empowering you fully, introducing others to you, recognizing your value not your cost, etc.)  Either option is a move in the right direction.

For many advisors the ideal business is about 150 clients, for some it is more, for some less, but as an average 150 is a good number.  Remember, if you want to increase the amount of money you are managing, you may need to take another hard look at your client base and lower the number of relationships that you are managing.  In addition to better, more profitable and enjoyable relationships, right-sizing often restores liberation and order to your personal life.  The goal is not to see how big you can get, but rather how small you can stay.

For a more detailed look at the upside of right-sizing, and a professional disassociation process, watch the six-minute video above.

 Continued Success!

The original article appeared at: The Upside of Right-Sizing

From Manager to Leader

Please consider forwarding this Actionable Tip of the Week to your manager if he or she aspires to learn:

• A proven process to lead elite advisors with a 1:1 strategy
• A sequential 1:many approach to lead groups of advisors who aspire to improve
• How to create a culture of professional development and self-motivation

Branch, complex, region and producing managers have a tough job. Their responsibilities as they relate to regulatory matters, performance and recruiting seem to be expanding every year, and yet managers still only have 24 hours in the day. And while I hear some managers complain about the strains and stresses of the job, there are a select few who simply accept the reality of the situation and still try to find ways to be more efficient, relevant and proactive with the advisors they lead.

In this Actionable Tip of the Week, I’m going to share a couple of qualities and strategies that separate the best managers from the rest. And keep in mind, this is not theoretical or idealistic; this content is drawn directly from our Effective Manager coaching program and is proven to generate meaningful and measurable results by some of most effective managers in the business.

Advisor Classification – Beyond 80/20

I’ll begin by talking about advisor productivity. As you know, one of the best ways a manager can garner reciprocity from his or her advisors in the form of loyalty, improved production and advocacy is by helping them attract and keep great clients and running a better business. But how can a manager find the time to do that, and how do they determine which advisors to allocate their time with?

Like everyone, a manager’s most valuable commodity is his or her time. They have to invest it wisely to ensure a measurable and predictable ROI. Every manager has advisors who need their time and others who deserve their time. The first step is to create an aspirational environment where the manager never spends time with those who need them at the expense of those who deserve them.

It’s not as simple as 80/20. Sure 80 percent of the business is probably done by 20 percent of the advisors, but that doesn’t always mean that the manager should spend 80 percent of their time with the most deserving 20 percent. Top advisors don’t always need a lot of attention and many of them have taken their business about as far as they can or want. They are more content than they are ambitious. That’s not to say that they should be neglected or taken for granted. What it does mean is that the manager has to dig a little deeper.

Cloning Great Advisors

Virtually every manager we’ve ever worked with can categorize their advisors into three groups. The top third are the most productive, self-motivated and consistent group. The bottom third consists of the advisors where there is little upside because these are the people who talk a good game but almost never seem to move the needle. There might be a few wildcards in there but it’s about as predictable as a lottery ticket. It’s the middle group – the moveable middle – where often exists the most untapped potential and blue sky. So let’s start there with a proven process to achieve some lift.

Within the moveable middle, you need to sift out those who deserve you from those who need you. You can’t mistake the appearance of potential with actual potential. You need a process and an on-going approach that reveals responsibility and accountability from those who are simply looking for a silver bullet.

You Can’t Want Them to Succeed More Than They Do!

The answer is to create a 1:1 coaching deliverable for the most deserving, a 1:many deliverable for those who need help and then show those who need how to deserve more. And the way they deserve is to demonstrate a commitment to personal development and implementation.

A Sequential Train-The-Trainer Approach

Organize a series of bi-weekly business development meetings. Regularly scheduled sessions where you will focus on one idea and then the group can methodically build the bridge as they cross it.

You don’t need to reinvent the wheel when it comes to themes and content. We have a YouTube channel consisting of over 25 videos where I explain proven actionable concepts. Simply play one video for the group, discuss it afterwards and then send them on their way.

It could be a six minute video on why and how an advisor should use an agenda in client meetings. It could be a four minute video on why they should never negotiate their value, or an eight minute video on how to properly position referrals in a conversation with an accountant. You can bring in a top producer to validate the concept and provide some additional insight and context on the concept. Then send the advisors back to their desks to implement that one concept. (Plus, your on-going exposure to this content keeps you in tune with actionable proven strategies.)

Those who come back to the next meeting having implemented the concept are displaying a worthiness for more of your time and energy. Their action prompts your action. Those who don’t come back, or who didn’t implement, are making a statement too. They likely don’t deserve your time.

You don’t want to be pumping up a leaky tire continually trying to motivate people whose intent diminishes quickly. You need to sift out those who understand the merit of sequential action and its impact on lasting traction. You can then point to their commitment – or lack of it – so that they take ownership for their results.

Case in Point

I recall working with a manager providing a process to help his advisors deploy a target marketing strategy for business owners. I suggested that the manager start by instructing his advisors to become serious students, and to begin the process by reading The Millionaire Next Door The Millionaire Next Door by Tom Stanley.

The manager held the meeting for about 20 advisors, talked briefly about the logic and strategy needed to attract business owners, and then asked them all to go out and buy the book, read it and come back to a meeting in two weeks to discuss the content. As predicted, about 12 advisors actually bought the book, the other eight never got around to it. Of the 12 who bought it, six actually read it – the others felt smarter simply holding it in their hands. After a series of group coaching sessions, the six of the 20 went on to very meaningful results working with and attracting affluent business owners. The others are probably still spinning their wheels, or are out of the business. But the manager never felt drained or frustrated because he only went deep with those who displayed a willingness to take action.

The bottom line in leadership is that you want to sift those who will from those who say they will.

Make the Time, Don’t Find Time

As you create an aspirational environment, you can make a substantial statement to your advisor community by proactively scheduling a one-hour block of time each day where you spend time in person or on the phone discussing business development strategies with the most deserving. This can’t be a random or haphazard approach. It has to be a priority, and it has to be habitual if you want to create a culture of professional development and continual improvement. Your philosophy and approach set this expectation.

I’ll Take Action – but You Have to Take Action in Order to Keep Receiving My Value

When the student is ready the teacher will appear.  -Confucius

The intangible of leadership is that you are putting out energy without a guarantee for where it will land or how it will be applied. Confucius said that “When the student is ready the teacher will appear.” Your advisors will be ready to implement at different times as they make connections in terms of the relevance of the concepts you provide. But you must believe that the impact you can have and the reach you can achieve is potentially staggering if you take a consistent and methodical approach. Use a process, be consistent, set expectations for rules of engagement, and then let your efforts compound over time. You will see results and you will be fulfilled as a mentor as your protégés start to see measurable results themselves. That’s the epitome of win-win.

Continued success!

The original article appeared at: The Indispensable Manager

In a couple of recent Actionable Tip of the Weeks, and in recent conference presentations, I’ve been stressing the importance of branding and as a result I’ve had several very interesting conversations with advisors – many of whom have made the transition to re-brand themselves, and even more with those who haven’t.  The bottom line trend I’m seeing is this: those who have followed a proven personal branding strategy consistently attract a higher quality and quantity of referrals from clients and partners while more effortlessly on-boarding predisposed high value clients.  Those advisors who have not gone through the process seem to have plateaued or face a stiffer headwind.  To address this I have created a brief video above that outlines a simple branding process that you can apply to your business.

Branding is different from marketing in that it more quickly impacts how a prospective client perceives you at the moment they become aware of you.

Branding is different from marketing in that it more quickly impacts how a prospective client perceives you at the moment they become aware of you. Literally, that first and lasting impression that snaps them out of their fog, gets their attention and resonates over the long haul.  Branding also impacts how your clients and other influencers in the marketplace describe you to others when the opportunity presents itself.

Our approach is proven and is drawn directly from our 1:1 coaching program used by some of the most effective financial advisors in the business.  It can ensure that you are perceived as a consultant by prospects and described as a professional with a process by clients and influencers.

And that is really the point.  How are most financial advisors perceived – as salespeople selling investments or as consultants providing an investment process?  Many people today associate a financial advisor as a broker asking them to buy investments as opposed to a consultant asking them buy into a process and long term relationship.  That’s their expectation and you cannot feed that – you have to differentiate using effective messaging in all of your verbal, printed and multimedia communications.

Furthermore, it’s becoming increasingly difficult to stand out from the pack because the investment industry is becoming more and more commoditized each and every day.  Along with that, there are forces at work that prompt people to focus on what you cost rather than what you are worth.  Price is only an issue in the absence of clearly defined and relevant value.  A solid branding strategy helps people focus on your unique value.

In addition to standing out, your goal is to get people’s attention and be memorable.  The velocity of noise your clients and prospective clients are exposed to is dizzying.  There is a natural signal to noise ratio in this business – you want people to tune out the noise and tune in your signal.  Branding helps you achieve this while ensuring you are positioned as an expert rather than being perceived as a salesperson.

As a coaching company for financial professionals, we are often asked what someone can expect from our practice management and business development consulting program.  My answer is simple: we want to help you work half as hard and earn twice as much.

That is achieved by helping advisors deploy a full suite of best practices, use a fit-process instead of a sales process and implement a branding strategy that is more compelling and attractive to affluent clients.  Watch this video to learn how you can work half as hard and earn twice as much.

Continued Success!

The original article appeared at: Differentiating Begins with a Personal Branding Strategy

A First Client Meeting Process to set the Stage for Great Client Relationships

Today’s Tip of the Week is a video tip drawn directly from our curriculum of proven strategies. 

In this video, Pareto Systems’ co-CEO Duncan MacPherson speaks about how the use of a meeting agenda, and a defined and verbalized ‘fit’ process during your initial client meetings will ensure you bring on clients that are well-aligned with you.

For many advisors, nowhere in their on-boarding process does a new client need to convince the advisor that there is a good fit.  It’s the advisor doing all the convincing and in the process their salesmanship is actually undermining the lifetime value of the relationship.

When you sell to someone, there is often a sense of anticlimax for the new client and perhaps even a chance that they are feeling some degree of buyer’s remorse.  The advisor cannot be the only one who gets excited when a new relationship is formed; the client has to have a sense of accomplishment too.

This is one reason that we suggest turning your prospective client process upside down.  Instead of pushing prospective clients into making a decision, you can engage and then empower them.  Our time-tested, up-front approach has been proven to attract new clients.  It combines the use of an agenda with a process that highlights the importance of a relationship based on “fit” rather than one based on pressure and urgency.

Continued success!

The original article appeared at: The Not-So-Hidden Agenda: A Video Tip of the Week

Pay Tribute to the Relationship, not the Business.

Today’s Tip of the Week this is drawn directly from our curriculum of proven strategies. In this video, Pareto Systems’ co-CEO Duncan MacPherson   speaks about the critical importance of saying thank-you to your clients.

You probably already know that consistent communication has the greatest impact on your ability as a financial advisor to competitor-proof your favorite clients, and to stimulate quality introductions to potential new clients. It is essential that you let your clients know that you genuinely value your relationship with them, and that your expressions of appreciation pay tribute to that relationship, and not to the business.

One of the most important times to thank your clients is when they introduce you to a friend or family member. When a client introduces you to a friend, it is a moment of truth that you simply must respond to. Not doing so is like not feeding the goose that lays the golden eggs.

Continued success!

The original article appeared at: Video: Saying Thank-you to Your Clients

The Triple A approach

Today’s Tip of the Week this is drawn directly from our curriculum of proven strategies. The information contained in the video isn’t on-trial, but is instead, time-tested and proven by many of the very best advisors in the business. This approach allows you to align yourself with the right clientele based on a 360 degree panoramic approach to client classification, and a careful ‘fit’ process.

A Triple A client classification framework based on not just Assets, but also Attitude and Advocacy will help you effectively sort and organize your new and existing clients in a meaningful way. This client classification process is the first step in ensuring you and your team focus on the 20% of your clients who generate 80% of your revenue – thereby increasing your chances of attracting more ideal clients just like them.

A client service matrix will ensure you and your team deliver ongoing client service with the highest degree of consistency and predictability. Consistency is a fundamental element of trust and overall client satisfaction. A client service matrix will ensure your best clients receive the time and attention they deserve.

Continued success!

The original article appeared at: Client Classification: Video Tip of the Week