1. Client Value Proposition Joncarl La Rosa

2. 2 Disclaimer RI Advice Group Pty Ltd, ABN 23 001 774 125, holds Australian Financial Services Licence Number 238429 and is licensed to provide financial product advice and deal in financial products such as: deposit and payment products, derivatives, life products, managed investment schemes including investor directed portfolio services, securities, superannuation, Retirement Savings Accounts. The information presented in this seminar is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. RI Advice Group strongly suggests that no person should act specifically on the basis of the information contained herein but should obtain appropriate professional advice based on their own circumstances.

3. In both cases, the Client Value Proposition needs to focus on the psychological and emotive drivers that clients will have 3 Two levels to consider  Broad positioning statement which articulates what you do and how your clients will benefit in their relationship with you. It is not a simple slogan – the business must believe and deliver on this!  Individual client value proposition which is specific and personal to each individual client. Using “Values Based” questioning techniques can assist you in drawing out what is important to them thus allowing you to position how you will manage the ongoing relationship. Client Value Proposition – What is it?

4. 4 Many people confuse the client value proposition with their client service proposition.  Client Service Proposition (CSP)  These are the tangibles that are delivered as part of the ongoing service. Examples include, but are not limited to seminars, portfolio reports, estate planning etc.  A CSP is important as this forms the foundation of the minimum fee based on these “tangibles”.  Client Value Proposition (CVP)  CVP focuses on the intangibles that clients don’t necessarily see (the emotive drivers).  This forms the foundation of what the client will actually pay, regardless of the services received i.e. the clients propensity to pay. Client Service Proposition v Client Value Proposition

5. 5 Client Value Proposition – The benefits Help you segment your clients as it is based on the individual desires, values and needs of your client. A well articulated CVP will: –form the foundation of an ongoing relationship and hence justify ongoing annual service fees (Opt-in). –help you win professional and client referrals. –help reduce the level of “transactional” based client interactions. Whilst transactional services can be profitable if scale exists, this is not sustainable business model.

6. 6 Client Value Proposition – the myth Reality – All advisers believe they provide their clients quality advice. Are you really better than your competitors? Do you really have a differentiated service? How do you know? Reality – Most clients would not know if they are receiving quality advice anyway.

7. Client Value Proposition – the myth Whilst having a differentiated service or competitive edge (Unique Value Proposition) is definitely beneficial, it is not critical to success with prospects and ongoing client engagement. Remember, the CVP is pitched to a client and is an emotive driver. As long as the CVP connects with the client’s emotional drivers, YOU WILL WIN THEM OVER As such, understanding the two levels of CVP is essential and the manner in which you pitch your value will be critical to the success.

8. 8 CVP – Is trust an issue for you? What could be the causes for the loss in trust? – Investment losses – Lack of contact – Lack of accountability Charles Green (US Based Consultant) built a formula for trust: Trust = C + R + I / S C = Credibility - your competence, track record and ability to instil confidence R = Reliability - do you deliver what you say you will? Service and advice I = Intimacy - how well do you engage with them on a personal level? S = Self orientation - to what extent are you putting their interests before yours?

9. 9 CVP – Developing and implementing  Get everyone involved – Your staff need to know it and whiteboard :  Your ideal client - There is no right or wrong - Consider demographic, advice type, personality etc.  The concerns or frustrations these ideal clients have and how you potentially solve those frustrations (the benefits).  Your practices strengths or any competitive advantages (USP – not critical to success however). In analyzing your strengths, how does this benefit your client?  Your clients feedback – use surveys or ask simple questions during reviews e.g. - Why did you choose me over a competitor? - What services do you value? - What do we do well? - What areas do you think we need to improve on?

10. 10 CVP – Developing and implementing 2. Take the key points from the whiteboard and create a short positioning piece/story which articulates what you do and the client feedback. Focus on the client’s key concerns and how we overcome them. The CVP must form the foundation of what you will deliver for your clients going forward. 3.Every staff member needs to know the CVP and believe it. If your CVP is long, consider having an elevator pitch component to your value prop statement – i.e. How would you explain what your business does if asked at a BBQ that captures the key deliverables of your CVP?

11. CVP – Developing and implementing 4.Determine how you will promote your CVP. Examples include but are not limited to: Client Service Agreements. Corporate profiles and websites. Alliance (COI) presentations and proposal documents Prospect presentations. Client seminar presentations

12. 12 Client Value Proposition – Examples Example 1: At, we want you to live more and worry less. We are a financial planning practice whereby our advice philosophy focuses on our clients values and goals. We want you to have peace of mind and confidence that all your financial affairs are in good hands. Ultimately, we are in business to help you: Streamline your finances which will save you time, remove stress and provide contentment and piece of mind. Make your money work smarter for you and track your progress over time. Keep you informed of where ongoing legislative changes create opportunities or require changes to previous recommendations which will minimise the risks. Partner with you to achieve your lifestyle goals – we firmly believe life should be more than just survival.

13. 13 Client Value Proposition – Examples Example 2 – Actual RI Practice (Mark Tidbury): Mark's extensive knowledge of financial markets enables him to design investment solutions specifically tailored for you. His advice aims to help you make the right choices for all your important financial decisions throughout life. Making the right choices with your money helps you enjoy more of the things we all want: financial security, freedom and a sense of control. Whether you face special challenges - like retirement or a career change - or you just want to get ahead, Mark can help you understand your financial options and make the right choices throughout life.

14. 14 Wealth Debt Lifestyle -Private education -New car -Travel -Eating out -Holidays -Investment property Survival -Loss of income -Trauma -Disability -Tragedy -Caring for grandchildren - Death Lock in your lifestyle - Risk protection - Estate Planning $0 Your current situation Where you want to be Saving for your children’s education? Living in Retirement? Cash Income Growth Want to retire sooner? Concerned about managing debt? Leaving a legacy? Client Value Proposition – holistic advice model as CVP

15. 15 Client Value Proposition – values based advice approach Once you have provided the client with a brief overview of who you are, what you do and how you can provide value, its time to let them do all the talking. Ask them in this order: 1.What does your ideal life look like? Consider: –Where are you? –What are you doing? –Who are you with? 2.What is important about money to you? Try to get the client to a point where they reach self actualisation (e.g. brings happiness, comfort etc). – Bill Bacharach approach. Write their responses up on a white board so that they can see it. Once you have answered these, move onto short, medium and long term goals.

16. 16 Client Value Proposition –values based advice approach More questions – Do you feel you have an approach or philosophy to investing? What is the best investment you ever made? What is the worst investment you ever made? Thinking about your professional relationships (e.g. accountants, solicitors) which relationships were the most beneficial? What did you like about it? What didn’t work? Important When dealing with husband and wife, ask them both the questions separately. Don’t assume they will both feel the same. Use visual mediums – write their responses on a whiteboard so they can see it and you can refer back to it during the course of your meeting. If they raise concerns around professional relationships, provide a solution which links back to your CVP. Don’t talk too much! Listen and address concerns. Agendas help!

17. 17 Client Value Proposition – Summary CVP is all about meeting the clients personal emotive drivers. You need to believe it and deliver on it. A life values based approach to planning will help you pitch and deliver. Your delivery mechanism will help you sell the dream. Your staff need to know it. Don’t keep it a secret.

18. Thank you