Positioning Your Business

Client Value Proposition (CVP)

Benefits of Creating and Implementing a CVP?
·Establishes a core around which the strategic direction of the business can be developed.
·Articulates the aspirations of the business in its delivery of service to clients.
·Influences the overall culture of the organisation.
·Determines what is delivered to the client and how it is delivered.
·Contributes to a consistent experience for all clients.

It is the CVP which drives the financial outcomes of a business.
Having a CVP is essential but being able to communicate it to your clients in a way which is easy to understand is critical. We can help you to build your CVP, providing the tools and materials needed to present to your clients.

Segmentation of clients
Segmentation is the first step towards determining the service packages offered by the business. It also establishes a suggested model for the types of clients which are attractive for the business to prospect and nurture.
Traditionally financial advice businesses have offered their services to all clients without discretion or alternatively have not delivered much of a service at all. It is unsustainable to be ‘all things to all people’. Segmentation is the process of analysing and categorising an existing client base allowing services to be streamlined according to the value the client provides to the business. It attempts to ensure that time, energy and resources i.e. COSTS are not wasted on those who are not significant drivers of value in the business.

Structured Service Offering
Most Adviser businesses offer a reactive only service in that as when a client needs and initiates contact, their enquiry is dealt with.

Because of the usually strong relationship with most clients this “reactive” approach has survived.
However, with the current requirements of “treating clients fairly” and the future challenges of the “Retail Disribution Review”, this approach cannot survive given the need to communicate to clients what Service is being offered and at what price.
Our findings with the majority of Advisers when asked to describe the service they offer to clients, answer by saying that they do not deliver a structured service with clear pricing, but have more a relationship based on trust with service being provided when and if required?
Also when asked what % of clients are profitable, the vast majority cannot answer that question?

Benefits of providing service clients’ value –
·Maximise client retention – protect from competitors.
·Attract new clients – may be receiving traditional or minimal service from their existing planners.
·Generate referrals – from satisfied clients.
·Greater operational efficiencies – don’t deliver service clients don’t value or outsource them.
·Increase in revenue generation – focus delivery on clients adding most value to the business.
·Ensure advice remains appropriate – continued review of client circumstances and goals by conducting   “structured” review meetings.

We are able to provide access to Industry best practice, but ultimately we can help you build a structured service proposition with supporting presentations and documentation best suited to your business and clients.

Developing a Profitable Pricing Strategy
Pricing in financial services has been a hot topic for many years.

How should advisers be remunerated? How should advisers determine their pricing levels? Are clients experiencing value for what they are paying? How transparent should a pricing structure be? How much detail should fee disclosure contain?

We can help not only to address the above issues, but also examine other challenges facing a financial services business when implementing an appropriate pricing model – where is the business at the moment on the evolutionary scale and where does it aim to be? How is the price of advice and service determined and how does the business transition from one pricing model to another?

We focus on supporting the advice focussed business. It may be far less relevant to businesses who wish to remain product sales or transaction focused. The view taken is that pricing structure is a strategic decision, formulated after reviewing a number of factors including business direction, market and infrastructure - not just a tactical adjustment of pricing level.

The components of a pricing model
There are four components of a typical pricing model for a financial advice business:
·The remuneration method (for advisers within the business).
·The pricing level for advice and service.
·The extent of transparency.
·The collection method.

Organisational Structure and defined roles.
Most small to medium sized businesses have evolved around people, not functions. The result is often that everyone in the business is responsible for everything and individual accountability is difficult to determine!

What are the benefits of an Effective Organisational Structure?

·The accountability for all key functions in the business is assigned.
·There is clarity for which functions a position is accountable.
·Accountabilities are allocated to the most appropriate person in the business according to their competencies   and experience.
·Those in key positions such as income production and strategic development are able to focus on their roles   without being distracted by the tasks which require a lower level of competency and experience.

··Career paths are much more transparent.
·The business is influenced to employ new team members based on competency, not cost.
·The business significantly reduces the dependency on the principal, which may result in a greater business   value.
·Employees have a greater level of job satisfaction.
·The business principal enjoys an improved lifestyle.
·Clients are able to experience a consistent service level.

In creating an effective organisational structure the business needs to identify the functional positions required in the business, determine the responsibilities and accountabilities for each position and allocate the most appropriate person to fulfil each role.
We can help facilitate the building of a “defined” organisational structure with supporting roles.

Effective systems & processes
Being able to deliver a structured advice process, supported by a structured service & pricing proposition is dependent upon defined roles within a business delivering specific responsibilities supported by consistent and efficient systems and processes.
We are able to share current Industry best practise, assist with and introduce associate Consultants/Providers to ensure that your systems and processes support the delivery of your business and client goals.