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Defining Client Value Beyond $ Signs

Segmentation is the first critical step toward greater efficiency and ultimately improved profitability. In our blog, “Take the First Step Towards Greater Efficiency With Client Segmentation,”  https://aeschlapia.wordpress.com/2012/03/27/take-the-first-step-towards-greater-efficiency-with-client-segmentation/ we provided you with basic steps and resources to segment your client database.

Start your segmentation process by defining client value.  Viewing each group with different needs and priorities will present you with the ability to serve each segment based upon their needs, not the firm’s profits.

Client segmentation is about improving customer service for all of your clients.  Use it to deliver solutions more effectively by streamlining and automating the services you offer.  Aligning the right level of advisor support to the client’s specific needs results in increased client satisfaction and in turn may even result in more client referrals.

Advancing Your Client Segmentation Plan

Client segmentation needs to be taken to a deeper lever in order to gain the full benefit.  Once your initial segmentation process is complete, you are ready to segment your client database further by distinguishing clients based on characteristics beyond the dollars.

Many advisors have not segmented their client database in a meaningful way beyond assets under management.  Assets under management will be your constant starting point for segmentation and predicting client needs.   Understanding that clients within the same segmentation class still have extraordinary needs and expectations will allow you to provide matched solutions with your product and service offerings.

Trying to provide the same high level of service to everyone can make it difficult to focus on the more complex clients and on the inevitable changes that come with growth and business development.  Ironstone can assist you in all phases of client segmentation and ultimately design a comprehensive client segmentation plan that will allow you the opportunity to hone in on specific and unique needs of clients within each segment.

Ironstone recommends  you place some of the following attributes in your segmentation plan beyond assets under management:

  • Revenue produced for the firm
  • Quality of your relationship with the client
  • Earnings potential
  • Client lifestyles & life events
  • Client demographics
  • Risk analysis/Behavioral attributes

Applying the above listed characteristics will provide another layer to your segmentation plan and aide in shaping optimal service for your clients.  You may not want to engage in each market base, but you can start with the characteristics that employ the biggest role in improving your firms’ bottom line.   By marketing to each subcategory you will accomplish more targeted messages and information that will resonate with your clients, resulting in engaged clients and prospects, higher response rates and a shorter conversion cycle.

Use this model to segment your clients by determining their level of revenue and the value of the business relationship.08.06.12 Segmentation Guide

Readers, we are curious!!  How do you approach segmentation in your firm?

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  The Human Element-Job Descriptions

• Email us at info@ironstonehq.com
• Call our office at 800-917-8020
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Mistakes In Your Capabilities Presentation? Avoid These!

As we continue our series in Ironstone’s Fundamental 4™, we explore the common mistakes made in capabilities presentations whereas our last blog showed you how to build one –  https://aeschlapia.wordpress.com/2012/03/08/a-capabilities-presentation-a-vital-piece-in-selling-your-firm-learn-how-to-create-your-story-and-what-to-include/

The most vital component of your capabilities presentation is knowing when to share it.  Before prospective clients hire you, they want to know:

  • What you can do for them
  • How qualified you are to do it
  • How you will solve their concerns

 

Amongst many mistakes, the most common is taking the lead and jumping in front of prospects only to give them a detailed list of services offered by your firm.

Establish a process that will build a solid foundation with prospective clients.  List the steps that you currently take when holding a first time meeting, review them, and update them to avoid the mistakes and include the components described in this blog.

The Four Components That Must Happen Before You Present Your Capabilities Presentation

 

  • Ask Questions – Your first step is to understand what your clients and prospects need. A capabilities presentation without understanding needs is like a fish out of water.   You will find yourself flopping around, looking and begging for water.
  • ListenYou can only truly understand their needs if you have given them the floor to speak – free of sales pitches and interruptions.  In addition to giving them the chance to explain their wants and needs you must pay attention.
  • Build trustShow that you care for the interests of others before your own gain.  Conduct all dealings with clients and prospects with honesty, strength, and your highest ability.  Trust cultivates an environment for people to entrust you with their vulnerabilities and allows them to reach out and accept your help.  References and client testimonials are two tangible and quick ways to start building trust.
  • Show Understanding – Incorporate their concerns in all your communication back to them.  This includes your face-to-face feedback, your follow-ups, and ultimately your capabilities presentation.

 

Once you have established a solid foundation to build on, you are ready to incorporate your Capabilities Presentation.  Focus on providing highly effective communication and tailoring a wealth management approach that will fulfill needs and become a solution for your clients and prospects.  By redirecting your efforts to where they should be (towards the client and prospect) you will be creating opportunities rather than waiting idly for decisions.

Some Common Mistakes to Avoid During Your Capabilities Presentation:

 

  • Not doing your homework on room set-up, attendees, timing, expectations, agenda
  • Not understanding the client’s challenge or criteria for selecting a wealth manager
  • Lack of synergy in presentation – too many authors
  • Not rehearsing
  • Arriving late
  • Reading your presentation
  • Connecting with the wrong client
  • Spending too much time on staging the room and not enough on the presentation
  • Pointing fingers at the “Big Guys”
  • Disengaged team during the presentation – checking email, yawning, writing notes to each other
  • Interrupting
  • Multiple answers to prospect questions
  • Not finishing on time

 

In new business, you only get one chance to make a GREAT impression.

Your capabilities presentation will ensure that you, your team, and prospective clients know exactly what you do and how you can become a solution to their needs.  New business will come your way, by following the guidelines that Ironstone has established.   Knowing when to present your capabilities presentation will give you a leading edge over your competitors.

Ironstone can assist you in developing the strategies and tactical questions you need when meeting with a new prospect for the first time and provide agendas and follow-up checklists to ensure vital pieces aren’t falling through the cracks.

Contact us for assistance in starting and improving your Capabilities Presentation.  We want to hear from you!   Share your best ideas here!

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Operational Effectiveness-Time Management