By Mike Schaffman, Simplicity Lone Beacon’s Vice President of Sales and Marketing.
“Look for the bare necessities, the simple bare necessities…” A song made famous by The Jungle Book movie says that they’ll come to you, but it’s not always that easy for financial advisors. Sometimes they must bring the bare necessities directly to their clients and prospects. The ultimate goal of the customer journey, from the advisor’s perspective, is to demonstrate how one’s worries for retirement can be forgotten and how they can rest easy with a comprehensive plan.
Every person exhibits at least one type of consumer buying behavior on a daily basis. It could be something as small as a cup of coffee, as large as a house, or somewhere in between like filling up your gas tank or buying a new pair of jeans. No matter what’s being purchased or considered for purchase, there are factors that influence our decision-making process and overall buying behavior.
Someone’s choice to purchase your advisory services may very well be the largest and most difficult buying decision they’ll make in their lifetime. Don’t forget that it’s a decision that will impact the rest of their life. Perhaps they’re motivated to seek an advisor due to a psychological factor; they’re motivated by a risk or a need that matters to them. Maybe it’s a social factor like following a friend’s referral or attending a dinner event. It could also be a situational factor, where one’s retirement day finally comes, or a market decline triggers a need to take action.
Ultimately, these key reasons for making a purchasing decision are rooted in the four types of buying behavior: Habitual, Complex, Variety seeking, and Conflict reducing. While every consumer is different, there are some non-negotiables that exist in every situation and for every type of purchase. Here are the 3 bare necessities of the customer journey that financial advisors must consider constantly, and execute upon consistently, in order to attract, close, and retain more business.
Price. At the very beginning stage of one’s journey, there are prerequisites that must be met. This is critical as the consumer will likely have predetermined expectations in place. Sure, we can talk about fee structures such as AUM percentage, performance based, hourly or flat fees. However, there’s a lot more that goes into “price” beyond a dollar sign for the consumer. Sometimes it’s the opportunity cost of switching from their current advisor or moving away from their DIY lifestyle. Other times the true feelings behind a price point come down to convenience and reliability. And, it will always be inclusive of a return on investment, whether that’s rooted solely in portfolio performance, or a combination of time saved and peace of mind-of-mind delivered. Ultimately, it’s up to you as the advisor, your staff, and your brand (which connects it all) to clearly communicate and deliver your unique value proposition to each and every prospect.
Quality Customer Service. This is not necessarily a brand differentiator as everyone in the commoditized financial business will say they’re better than the next at customer service. That said, when it comes to this major buying decision, it is one of the bare minimums that will influence your prospects who already have a pre-determined expectation. Recently, Simplicity Lone Beacon co-founder John Capuano published a video where he said of today’s consumers: “They expect authenticity and an easy experience, especially in a commoditized business like ours… If you’re resisting change within your sales process and not adapting to fit what today’s consumers want, then you’re missing out big time.” Your services are not designed to fit your needs and terms, they’re designed to fit your clients and prospects’ needs and terms. If you don’t know what your customer’s expectations are, then you can’t possibly meet them. Start by researching and defining their persona or avatar, considering their demographics and psychographics. Then, offer multiple platforms and mediums for those people to connect with you on. Finally, be proactive with outward communication using both dynamic touchpoints via database emails, text messages, and personal touchpoints via phone calls and direct emails.
Reliable Products. Of course, it’s important that your clients and prospects know they have access to reputable carriers and have seasoned experts reviewing market data. While this might be a bit more of a brand differentiator than quality customer service, it’s still not enough to stand on alone. Frankly, everyone’s advisors work off of the same stock market and they all have similar access to financial products. It’s critical for advisors to think about their “product” in terms of the outcome for the customer. Only then can an advisor begin to communicate messaging around this concept. Remember, the ultimate goal of the customer journey is to demonstrate how one’s worries for retirement can be forgotten and how they can rest easy with a comprehensive plan and tailored strategy. Consider how the customer views “the product” as a lottery ticket to living their desired lifestyle for the next 30+ years. They’ve worked so hard over their lifetime to be able to enjoy their retirement, and they’re looking to you, the advisor, to be that special person who will help them accomplish their goals in an easy way.
Wherever your clients and prospects “wander, wherever they roam, they couldn’t be fonder of their big home.” That home can be you and your firm, but just make sure you bring them the bare necessities of the customer journey and grow from there.
About the Author: Mike Schaffman joined Simplicity Lone Beacon in 2015, pioneering their core marketing platform, creating content and connecting media and broadcast components with a turnkey digital solution. Mike helped transform Simplicity Lone Beacon’s offerings and solutions into one of the leading independent financial advisor marketing services in the country today. When he’s not in the office, Mike enjoys playing golf and hockey and likes to experiment in the kitchen.
