1. For financial advisers only
“… Because we’re worth it” Establishing the right image and gaining client commitment through effective client engagement and education
Lawrence Emm
Business Change Specialist

2. TODAY’S AGENDA Context Communicating with existing clients
For financial advisers only
TODAY’S AGENDA
Context
Communicating with existing clients
Re-establishing value and worth
New client commitment
Tools for the job
Next session

3. ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY
For financial advisers only
THE COMPLETE PICTURE
CLIENT NEEDS
PROPOSITION
SERVICE CONTENT
PRICING
PROCESS AND IT
PEOPLE CAPABILITY
ARTICULATING VALUE, WORTH AND EXPERTISE CLEARLY

4. THE CLIENT’S PERSPECTIVE
For financial advisers only
THE CLIENT’S PERSPECTIVE
Clarity
Value for money
Tangibility
Straightforward
Not over complicated or complex or full of jargon
Accessibility
Able to speak to people who understand me

5. KEY QUESTIONS Which clients do we want to retain?
For financial advisers only
KEY QUESTIONS
Which clients do we want to retain?
Which clients do we want to lose – if any?
Which clients are profitable?
Which clients are unprofitable?
Do we have the right type of clients?
Are clients getting the correct level of service?
Are clients paying us for our true value and worth?
Can we articulate and explain our value and worth?

6. CLIENT RE-ENGAGEMENT PROCESS
For financial advisers only
CLIENT RE-ENGAGEMENT PROCESS

7. TRANSITIONING EXISTING CLIENTS
For financial advisers only
TRANSITIONING EXISTING CLIENTS
Only consider existing client engagement when you have established and documented the ‘new client experience’
Stay focused on profitability
You must be able to articulate and explain your value and worth in a way the client can clearly see the benefit of continuing to work with you and pay you

8. CLIENT CATEGORISATION AND SEGMENTATION
For financial advisers only
CLIENT CATEGORISATION AND SEGMENTATION
Use your new client service titles
Analyse existing client data in terms of income against costs – where data is available
Categorise existing clients – aim to have 60% of existing clients comfortably fitting into one of new service propositions
Segment 40% remainder as follows:
highly profitable – Platinum Superstars!
currently unprofitable – but have potential to be profitable
currently unprofitable – unlikely to have potential to be profitable
do not have sufficient data - profitability or potential

9. SETTING THE RIGHT TONE – CLIENT REASSURANCE
For financial advisers only
SETTING THE RIGHT TONE – CLIENT REASSURANCE
Dear Mr Williams,
You will be aware from recent press and media reports that significant changes are scheduled to take place within the financial services profession from January Here at Tollarday Wealth Management you will be pleased to know that we have operated ahead of these industry benchmarks for some time and pride ourselves that all our advisers, and a number of our client management team, are already qualified to Chartered Financial Planner status which is higher than the new professional standard set by our regulatory body.
At our next review we will guide you through how we intend to simply formalise the way we have worked in partnership with you over the last 8 years while managing your tax and estate planning. We will also discuss how you will continue to receive the same high levels of ongoing advice and service in the future as one of our valued clients.
If you have any questions in the meantime please do not hesitate to call me on

10. CLIENT CONTACT STRATEGIES
For financial advisers only
CLIENT CONTACT STRATEGIES
Typically these may include:
Seminars
Client review meetings
Telephone
Letters
Social media
Remember that some clients will need to have several approaches using different contact strategies to effectively communicate the need for change and gain their commitment.

11. CURRENTLY UNPROFITABLE BUT WITH POTENTIAL
For financial advisers only
CLIENT CATEGORISATION AND SEGMENTATION
CURRENTLY UNPROFITABLE BUT WITH POTENTIAL
Use the ‘campaign’ approach highlighted in later slides
Highlight benefits of client choosing you as their trusted adviser
Enclose client services leaflet
Highlight benefits of Mid-Range option and routine reviews and pro-active services
Explain that client has choice and now needs to decide how want to work together (or not) in future
Ask client to complete ‘tear off slip’ and return or call office to discuss

12. CLIENT ENGAGEMENT – PLANNING TEMPLATE
For financial advisers only
CLIENT ENGAGEMENT – PLANNING TEMPLATE
Activity
What are you trying to achieve?
(Objective)
What is the activity about?
(Proposition)
Who are we trying to influence?
(Target)
What do we want them to know?
(Key Messages)
How will we communicate?
When will this happen?
(Method and Timing)
Who will do the work and what will it cost? (Resource and Budget)
How will we know if it has worked? (Measure of success)

13. CLIENT ENGAGEMENT – PLANNING TEMPLATE
For financial advisers only
CLIENT ENGAGEMENT – PLANNING TEMPLATE

14. ENGAGING CLIENTS BEYOND 2013

15. How do advisers spend their time?
... and where do most clients perceive value?
Financial data gathering
Planning and preparation
Review & ongoing service
Relationship management
Product advice
Research and administration
Data analysis
Present plan
Where advisers spend their time
What clients value
Source: Cerulli Associates FPA Principal Member Survey November 2002

16. For financial advisers only

17. Fellow Advisers
Offices
You
Documents
Para-Planners
Communications: politeness and efficiency
Website
Cars

19. Service: From client expectations to consistent delivery
Stage Four
REVIEW AND RETAIN
Ongoing service delivery
Client “Story”
To demonstrate WORTH and BENEFIT
Revenue and commission management
Transactions and “new business”
Stage Three
RECOMMEND AND IMPLEMENT
Research, report and recommendations
Detailed fact finding
Initial data gathering
Stage Two
GATHER DATA AND PREPARE RECOMMENDATIONS
Stage One
CLIENT ACQUISITION

20. Financial Consultancy Financial Planning Financial Advice
For financial advisers only
Premier
Select
Assist
Platinum
Gold
Bronze
XYZ Elite
XYZ Standard
Client Select
ABC Wealth
ABC Planning
ABC Advice
A Class
B Class
C Class
Financial Consultancy
Financial Planning
Financial Advice

21. ADVICE AND SERVICE PROPOSITIONS
For financial advisers only
ADVICE AND SERVICE PROPOSITIONS
Financial Wealth Management
”We provide financial consultancy and proactive financial management for business and private clients with complex affairs – we will work with other professionals to create and manage a bespoke, comprehensive and evolving strategy”
Financial Planning
“We provide straightforward financial advice to make sure you have the right advice and product solutions for your immediate and future needs”
Financial Advice
“We will arrange to transact particular financial products at your request”

22. A CHOICE OF SERVICE PACKAGES
For financial advisers only
A CHOICE OF SERVICE PACKAGES

23. 6 KEY QUESTIONS For financial advisers only
What processes and IT do we need to make it happen?
Right people -right place - right time?
What and when do we need to do? – service content
What information will we provide – when?
Why will clients come to us?
What will we do for them?

24. SIMPLICITY INSURANCE ADVISERS PREMIER WEALTH CONSULTANTS
For financial advisers only
HOW DO WE WANT TO BE SEEN BY CLIENTS
SIMPLICITY INSURANCE ADVISERS
What do we do?
Streamlined advice in one meeting to make sure people have the right policies for their needs
Who do we do it for?
Families and working people between the ages of 30 and 50
How do we do it?
Straight forward fact find and product/fund selection software – automated reports and other documents
Where do we do it?
In our high street “shop-front” office or in people’s homes
PREMIER WEALTH CONSULTANTS
What do we do?
Expert financial and tax planning to enable the long term management of investments through a detailed plan that is regularly reviewed
Who do we do it for?
Private clients with over £500k
How do we do it?
Working with other professional advisers from a consultancy perspective to use our in-house technical skills and expert software to pro-actively manage clients’ affairs
Where do we do it?
In traditional style offices in the “professional quarter”

25. These are the benefits to the client – these have real value
For financial advisers only
This is what we do …
We will provide regular reviews and recommend only appropriate changes
We will always explain to you the choices and options you have
We will explain our approach to planning, research and analysis
We will show you what is required to make it work for you
We will ensure we understand what each of our clients want
This is how we do it …
We will help you to think about what is important - what you want to achieve, fix or avoid
We will carry out research necessary to ensure you receive the best advice – we will draw up a plan to make everything crystal clear and logical
We will explain all the choices of levels of advice and service available and help you make the right decision
We will only do what is right for you – we will arrange and implement any necessary solutions such as products, funds or trusts – we will agree ongoing services and contact
We will do what you have asked us to do and meet as often as you have agreed and provide other ways of keeping in touch to keep you and your plan up to date
These are the benefits to the client – these have real value
CLARITY
A succinct picture of where you stand
CHOICE Flexible options
CERTAINTY
so that you stay on track
CLEAR route to follow

26. CLIENT ENGAGEMENT – CLIENT COMMITMENT
For financial advisers only
CLIENT ENGAGEMENT – CLIENT COMMITMENT
We offer all clients an initial half-hour meeting at our expense in order for you to see if there is a fit between us and if you like the approach we take.
We will gather some basic information, answer your questions about how we might work together and explain each of the stages of financial planning.
We can give you examples of the work we have done with similar clients and an indication of the typical costs involved.
Understanding what our clients want
We will help you to think about what is important, what you want to achieve, fix or avoid

27. THE LANGUAGE OF VALUE AND WORTH
For financial advisers only
THE LANGUAGE OF VALUE AND WORTH
OLD WORLD
FREE
COST - PRICE
NO OBLIGATION
SALES
ADVISER
COMMISSION
ADMINISTRATION SUPPORT STAFF
“EASY 5 MINUTE JOB – SIMPLE AND STRAIGHT FORWARD”
UNSTRUCTURED, AD HOC CONTACT
NEW WORLD
“AT OUR EXPENSE”
VALUE – WORTH
COMMITMENT
ADVICE
FINANCIAL PLANNER
FEE – SERVICE CHARGE
CLIENT MANAGER - EXECUTIVE
“USING COMPREHENSIVE TOOLS AND EXPERTISE …”
ROUTINE AND AGREED SERVICING

28. For financial advisers only
THE CRITICAL POINT
The initial engagement meeting will become the most important opportunity to establish:
Value and worth
Clear expectations
Gain client commitment

29. CREASTING THE RIGHT IMPRESSION
For financial advisers only
CREASTING THE RIGHT IMPRESSION

30. A DISTINCT CLIENT ENGAGEMENT PROCESS
For financial advisers only
A DISTINCT CLIENT ENGAGEMENT PROCESS

31. A DISTINCT CLIENT ENGAGEMENT PROCESS
For financial advisers only
A DISTINCT CLIENT ENGAGEMENT PROCESS

32. UNBUNDLING THE CLIENT EXPERIENCE
For financial advisers only
UNBUNDLING THE CLIENT EXPERIENCE
Information gathering
Present and negotiate client propositions
Agree basis for working together
INITIAL 30/40 Minutes “AT OUR EXPENSE”
Client Engagement
Stage 1
Information gathering – Risk Analysis etc.,
Analysis and Product research
Lifestyle analysis and report
FIXED OR MINIMUM FEE OR HOURLY RATE
Stage 2
Strategy and Planning
Present recommendations
Agree asset allocation
Applications - Reasons why
FIXED OR MINIMUM FEE
Stage 3
Implementation
Update Lifestyle analysis
Recommend change (or no action)
FIXED OR MINIMUM FEE OR HOURLY RATE
Stage 4
Service

33. A CLIENT SERVICE AGREEMENT - EXAMPLE
For financial advisers only
A CLIENT SERVICE AGREEMENT - EXAMPLE

34. For financial advisers only
SUMMARY
Clients will pay explicit advice and service charges (fees) only where they can see tangible value and worth
Articulate value – not price and cost
Don’t over-promise (and under-deliver)
Use website, client service literature to reinforce your expertise, value and worth
Now is the time to develop and practise – 7 months to R-Day

35. For financial advisers only
REHEARSE AND PRACTISE
Businesses need to move from concept to implementation by engagement and buy-in of all staff. By necessity this will mean significant investment in rehearsal, practise and review as well as the business setting clear expectations and managing performance.
We can learn from the experiences of Heathrow T5 …

36. For financial advisers only
This presentation is designed for and directed at professional financial advisers. It should not be relied on by consumers.
This document is based on Skandia’s interpretation of the law and the HM Revenue and Customs practice as at January We believe this interpretation is correct, but cannot guarantee it. Tax relief and the tax treatment of investment funds may change.

37. For financial advisers only
Calls may be monitored and recorded for training purposes and to avoid misunderstandings.
Skandia provides you with access to its investment platform, known as Skandia Investment Solutions. Within this platform you can open an ISA and Collective Investment Account provided by Skandia MultiFUNDS Limited, and a Collective Retirement Account and Collective Investment Bond provided by Skandia MultiFUNDS Assurance Limited .
Skandia Life Assurance Company Limited, Skandia MultiFUNDS Limited and Skandia MultiFUNDS Assurance Limited are registered in England & Wales under numbers , and respectively. Registered Office at Skandia House, Portland Terrace, Southampton SO14 7EJ, United Kingdom.
All companies are authorised and regulated by the Financial Services Authority with FSA register numbers , and VAT number for all above companies is