Building a 21 st Century Financial Practice © 2008 The Oechsli Institute. All rights reserved. Matt Oechsli

© 2008 The Oechsli Institute. All rights reserved. January 2000 Research of Affluent Buyers Objective: To explore affluent investors’ perceptions of their financial advisors. Results: Identified 14 specific qualities where significant GAPS existed between investor expectations and the performance of their Financial Advisor.

© 2008 The Oechsli Institute. All rights reserved. Survey of over 400 Affluent Buyers -- January, Not giving satisfactory value for the fees or commissions I pay. 2. Not providing financial advice that is always in my best interest. 3. Not providing high quality information for making financial and investment decisions. The top 3 critical areas where financial advisors were NOT meeting expectations …

What’s important? 2007 Oechsli Institute Research © 2008 The Oechsli Institute. All rights reserved. 60% - Maintain desired lifestyle in retirement 56% - Meet current living expenses 39% - Minimize taxes 34% - Financial documents organized 22% - Reduce debt 20% - Detailed estate plan 15% - Fund a college education 9% - Charitable giving plan Financial Areas Rated as Highly Important: Financial Health

What Affluent Clients Need A go-to Financial Coordinator … To help them integrate the multidimensional aspects of their finances in order to optimize the protection and growth of their assets Oechsli Institute Research © 2008 The Oechsli Institute. All rights reserved.

Investor Categories Cap Gemini Ernst & Young 2002 Category Available Investable Assets HNW 1 $10 million and higher HNW 2 $1 to $10 million Mass Affluent $500 thousand to $1 million Emerging Affluent 1 $250 thousand to $500 thousand Emerging Affluent 2 $100 thousand to $250 thousand Upper Middle Class $75 thousand to $100 thousand Middle Class $25 thousand to $75 thousand Lower Middle Class Under $25 thousand * * Untapped and Underserved

© 2008 The Oechsli Institute. All rights reserved. Survey of Affluent Investor Decision Making Is proactive about contacting them when upcoming tax and other changes will impact their investment portfolio. 2. Clearly reveals their fee structure. 3. Clearly understands their goals and family situation when giving investment advice. 4. Brings in experts to help with other financial areas. Investors want a Primary Financial Coordinator who …

© 2008 The Oechsli Institute. All rights reserved. 5. Helps them select the asset mix for their investment portfolio. 6. Helps them create a formal financial plan. 7. Helps them coordinate and organize all their financial documents. 8. Coordinates investment decisions. Survey of Affluent Investor Decision Making Investors want a Primary Financial Coordinator who …

© 2008 The Oechsli Institute. All rights reserved.

Research based Action oriented Street tested © 2008 The Oechsli Institute. All rights reserved. Building a 21 st Century Financial Practice The Solution!

© 2008 The Oechsli Institute. All rights reserved. Building a 21 st Century Financial Practice Achieving a 5-Year Plan by retaining, upgrading, and attracting those who match an Ideal Client Profile.

© 2008 The Oechsli Institute. All rights reserved. Creating Your 5-Year Business Plan Then answer the question: What quality of business and personal life do I want 5 years from now? Gaze through your crystal ball and envision what does not yet exist.

© 2008 The Oechsli Institute. All rights reserved. Analyzing Your Client Base Review your entire client list. Identify your Top 25 Net Profit Contribution Clients. Maintain a Weekly Time & Activity Log to determine who and what receives most of your attention.

Your Ideal & Minimum Profitable Clients © 2008 The Oechsli Institute. All rights reserved. My Ideal - $ ___________ My Minimum Profitable - $ ___________

© 2008 The Oechsli Institute. All rights reserved. INTERNAL Business Development Requires the effective use of … Your Ideal & Minimum Profitable Client criteria Your Financial Advisory Process Plus performing Fixed Daily Activities faithfully … Client Retention activities Client Upgrade activities Monitored by your Critical Path Scorecard

© 2008 The Oechsli Institute. All rights reserved. EXTERNAL Business Development Target the right people Connect with targeted prospects Qualify potential Ideal Clients Close Ideal Clients Needed: A strategy to attract them like a magnet!

© 2008 The Oechsli Institute. All rights reserved. Building a 21 st Century Financial Practice Achieving a 5-Year Plan by retaining, upgrading, and attracting those who match an Ideal Client Profile. Increasing assets through providing a full range of basic and planning-based financial services.

© 2008 The Oechsli Institute. All rights reserved. The Proof is in Your Process You must be able to … Maintain a high level of proactive interaction with each client. Explain how each product and service you offer integrates with all the others. Be familiar enough with each client’s needs to know when to bring in a specialist to help you.

© 2008 The Oechsli Institute. All rights reserved. Providing a Financial Organizer to Each Client All the client’s financial records in one place. Well organized – easy to find. Linked to your Financial Advisory Process. More tangible evidence of benefiting from your process!

© 2008 The Oechsli Institute. All rights reserved. Building a 21 st Century Financial Practice Achieving a 5-Year Plan by retaining, upgrading, and attracting those who match an Ideal Client Profile. Increasing assets through providing a full range of basic and planning-based financial services. Building a financial advisory process that provides Ritz-Carlton level service with Fed-Ex efficiency.

© 2008 The Oechsli Institute. All rights reserved. Building Operational Efficiency Operational Efficiency is defined by two standards … Providing Ritz-Carlton level SERVICE. Backed and supported by FedEx level EFFICIENCY.

© 2008 The Oechsli Institute. All rights reserved. Building a 21 st Century Financial Practice Achieving a 5-Year Plan by retaining, upgrading, and attracting those who match an Ideal Client Profile. Increasing assets through providing a full range of basic and planning-based financial services. Building a financial advisory process that provides Ritz- Carlton level service with Fed-Ex efficiency. Earning the loyalty of each Ideal Client and expanding your Ideal Client base through the referrals those relationships provide.

Understanding the Client Loyalty Process © 2008 The Oechsli Institute. All rights reserved. Conduct business with only you now. Plan to conduct business with only you in the future. Eagerly consider new strategies, services, and products you recommend. Resist the “pull” from your competition. Provide solicited and unsolicited referrals. Loyal clients …

Strategies for Building Client Loyalty © 2008 The Oechsli Institute. All rights reserved. Review the following strategies and identify what you can IMPLEMENT right now … 1. Be a problem solver. 2. Deliver Ritz-Carlton Service. 3. Provide Fed-Ex Efficiency 4. Know (really know!) your clients. 5. Interact with each client at exactly the right point.

© 2008 The Oechsli Institute. All rights reserved. Fixed Daily Activities Activities Client Review Meetings Client Upgrade Meetings Referral Alliance Contacts Networking Prospect Introductions Prospect Referral Contacts Place Yourself In Their Path Intimate Client Events Objectives Client retention Additional assets Introductions / referrals Keep Pipeline full Getting face-to-face with one HNW prospect at a time.

© 2008 The Oechsli Institute. All rights reserved. Your 21 st Century Practice Builder Action Plan

© 2008 The Oechsli Institute. All rights reserved. The Oechsli Institute, 1005 Battleground Ave. Greensboro NC (800) It’s all about RELATIONSHIPS One prospect and one client at a time Building a 21 st Century Financial Practice