one percenters

(Reading time:  4 minutes)

The 1% Club
How to increase client satisfaction from 
good to exceptional 

Research indicates that if you provide five or more products or services for a client, you will become that person’s Primary Advisor. But, how can you make that happen? How can you expand that existing relationship?  Aren't you already doing as much possible? 

According to the new Rand Report (Investor and Industry Perspectives on Investment Advisers and Broker-Dealers), it's not performance or costs that tip the scale in your direction.  Actually, the keys to expanding your existing client relationships are simpler and more personal. It’s directly related to how adroit you are at being responsive to your clients and providing a more complete range of services. 

What does "responsive" mean? Much of this definition comes from Business 101. Returning phone calls promptly, answering questions promptly and appropriately – the sort of thing that should fall under the heading of “Common Sense.” But that’s not all. Those things are merely the fundamental and (let’s call them) mandatory elements.

If there is a key to inspiring someone to feel that you are responsive, it’s in HOW you respond. It’s in the language you use - both verbal and nonverbal - and in the style of your communication. Responsiveness to a client means using psychology.  Unfortunately, those things are not taught in Business 101. However, they are taught in Psychology 101. In other words, if you want to show yourself as the most responsive to a certain client, you need to determine what “responsiveness” means to that person and respond to him in that way.

To some of you, this will seem like much ado about very little. But, everyone else will understand the disproportionately high value you can receive from a small improvement in the quality of your client relationship.  That's what turns people from clients to advocates.  You are the people we call the “1% Club.”

Numbers please! The reason we are so focused on the psychology of relationships is that we've seen the results.  Over and over again, year after year, as our clients learn these skills, they see their results jump up.  It's easy to double new business with small changes to how you approach your business.  With a little more effort, you could increase it beyond that. 

How much satisfaction is enough? We have lots of anecdotal evidence from our own clients, and we have proprietary data from other firms.   But our favorite evidence comes from another industry.

The research was done at Sears and it pin points the bottom-line impact of increasing customer (client) satisfaction by only one percent. More specifically, Sears learned that when customers rated their overall satisfaction with the shopping experience as a "9" on a one-through-ten scale, only 33% were likely to recommend Sears as a place to shop. While Sears managers initially believed that a "9" on a 10-point scale was a high rating on customer satisfaction, analyses showed otherwise. Thus, satisfied customers were not enough. What they needed were enthusiastic customers to drive referrals.

When customers rated Sears a "10," 82% of them were likely to recommend Sears to friends or family.  In case this is news to you, referrals are a key driver of business success in retailing.” (Sound familiar?)

Understanding these relationships helped Sears managers understand how much customer satisfaction was "enough." -- Source: The HR Scorecard: Linking People, Strategy, and Performance, p. 124.  

 The point.  I share that story with you to illustrate that even a 1% increase in the level of client satisfaction can be extremely significant. In fact, at your level, it is likely to be only a 1% adjustment that makes the difference.  But, you’re not Sears, so how does an increase in client satisfaction impact a financial practice? The following numbers come from Cultivating the Middle Class Millionaire (Russ Alan Prince):

• 94% of “highly satisfied” clients are likely to make referrals, versus 13% for those only “moderately satisfied.”
• 86% of “highly satisfied” clients are likely to buy additional products and services, versus 12% for those only “moderately satisfied.”
• Zero (0%) of the “highly satisfied” are likely to leave, versus 21% of “moderately satisfied” clients are likely to leave in the next two years.

Several years ago, the holy grail in the financial industry was the high-net-worth client. Every advisor and insurance agent was aiming at the same target. Now, the holy grail is referrals – hopefully to a high-net-worth client.  As we’ve just seen, the way to get referrals is to increase the level – maximize the level of satisfaction for your existing clients. For, if your existing clients are not highly satisfied, they are less likely – far less likely – to give you a referral, and far more likely to find another advisor.

OK, that covers the WHY. Simply, it brings you more referrals which lead to greater assets under management, more product sales and higher revenue. Now, the question is HOW? To answer that, let’s look at some facts about the Middle Class Millionaire mindset and how it differs from that of most financial advisors:

• CLIENTS: 9 out of every 10 middle class millionaires are concerned about losing their wealth.
  • Unfortunately - only 15% of advisors believe 20% or more of HNW clients are worried about losing their wealth.
  • There is a disconnect here.
• CLIENTS: The affluent prefer a whole-client model that accommodates taxes, personal interests and responsibilities, and investment management.
  • Unfortunately, most financial advisors focus only on investment management.
  • There is a disconnect here.
• CLIENTS: The more affluent the clients, the more likely they are to have (and prefer) multiple advisors (an interrelated team that works on their behalf).
  • Unfortunately, most financial advisors continue to operate solo.
  • There is a disconnect here.
    

Keep those numbers in mind.  Business 101 says that the way to your client’s loyalty is through his/her wants and needs, not your own. Point is, you will very likely find that only a 1% increase in client satisfaction will increase (or maximize) the level of your client satisfaction enough to move them from satisfied to extremely satisfied. 

What could bring you that extra 1%?  That's what we help our coaching clients figure out.  However, over the years, we've found some significant commonalities.  So, if you wanted to learn from others' experience, you might consider providing services, communication, and relationship strategies. Further, you might consider learning the most effective ways to implement those things from experts.

Your Reward. Pam and I will team up with our Strategic Partner (and friend) Paul Scaffidi to host and conduct the first-ever training intensive on these exact lessons. The 1% Club Intensive will be held on May 22-23 near Charlotte, North Carolina. Tuition for subscribers to our Inner Circle has been discounted to $250. Tuition for non-subscribers is $299.  BUT, if you send me the specific questions you want us to answer at the event, I’ll make sure you get an additional $50 discount! 

More about the 1% Club Intensive:

This event will be the only one of its kind anywhere.  We'll open our vault of knowledge, skills, processes and wisdom - the special goodies we've spent decades developing.  And, we will teach you exactly what to do - how to improve your relationships with your existing clients to maximize their satisfaction. And, the result will include:  greater "share of client," holding onto the assets, inspiring greater loyalty, higher quality referrals, and many more of them.

Here are some of the things you will learn at this fascinating event:

1. The 3 elements of relationship satisfaction: Connection, Credibility and Communication
2. The 3 levels of personal connection: Personal, Generational, and Cultural
3. How to connect with Middle Class Millionaires
4. How to connect with Boomer Values
5. How to speed-read each of the 4 personality types
6. Communication strategies for connecting with each type
7. How to expand the client’s picture of you (from An Advisor to Primary Advisor)
8. How to demonstrate credibility and relevance
9. The psychology of how and when to ask for referrals
10. How to make it easy for clients to refer you

Want that extra $50 discount?  hit this link: michael@aboutpeople.com and send me the questions you want us to answer at the Intensive. 

Find AboutPeople resources at:  http://secure.megatrans.com/aboutpeople/Catalog