RGR_PRACTICE MANAGEMENT _ Penton Media October 15, 2009 If you want to view this on the web go to: http://enews.penton.com/enews/registeredrep/v/753 --Differentiating Your Practice Matt Oechsli Atlanta: "Every advisor who listens to you or reads your research knows what today's affluent want in a financial advisor," said Tim with disappointment. "How can I differentiate myself when everyone is telling the same story?" This conversation occurred a few days before my wife Sandy and I were scheduled to leave for a 10 day vacation in Provence and Paris. I forgot about this little discussion until we were in sitting down to lunch at one of those touristy cafes in Paris on the Seine. Suddenly, I began thinking of Tim and exactly what he, as well as every other financial advisor marketing his or her services to the affluent, must do to differentiate himself from the competition. (http://www.oechsli.com/rainmaker/interviews.asp?id=137) Because we had decided to grab an early lunch, Sandy and I were able to watch the rhythms of this little caf_ as it began to fill with what appeared to be a convivial lunch crowd. Everyone was greeted by a well dressed middle-aged woman in the same friendly manner as we had been, with one difference; she knew many of the patrons by name and kissed each one (male and female) on both cheeks. It became obvious that she was the owner and then it dawned on us: what had looked to us like a tourist caf_ was filled with local Parisians. Why not? The service was excellent (personal and friendly), the food was wonderful (as expected in Paris), the price was moderate (which says a lot in Paris), and upon departing we were bid "adieu" with the same warmth as when we entered. This was a stark contrast to our experiences at a couple of other casual lunch places, where we got poor or indifferent service, and at one convenience store, where the clerk yelled at Sandy for taking a photo of the beverage I was about to purchase--but that's another story. Each of these establishments seemed to be focused on attracting and serving affluent tourists. They purchased food from similar distributors, hired staff from the same talent pool, and operated within less than a mile from one another. But our various experiences in these establishments were very different. One cafe was forgettable, the convenience store was so bad it's already become a joke, and the little caf_ on the Seine is etched in our memory-we'll eat there again and pass on the word. If you've yet to build a bridge between my meandering tourist experiences in Paris and Tim's concerns, let me provide a bit more clarity. As we all know it appears that every financial advisor is marketing similar products and services, just like the caf_s along the Seine. The following are five of 16 statistically significant criteria our latest research has uncovered that are important to affluent investors regarding their financial advisor. As you peruse them, you might find it helpful to think on two parallel paths: Path One: The consistency with which you are currently addressing each of these criteria. All are non-negotiable with today's skeptical affluent investor and must be considered a priority for relationship management. Path Two: Assuming that you are or will soon be consistently delivering on each of these criteria, the multi-million dollar question becomes: what fine-tuning is needed to transform these criteria so that they make you stand out? Keep in mind that your professional reputation and the first impression you make are the two most critical ingredients in an affluent investor's selection process today. Differentiation is a personal commitment because it requires hard work. Criteria Important to Today's Affluent *Provides clear and timely communication. Our hostess gave us a choice of tables, seated us, told us the name of our waiter, who promptly appeared and explained the lunch specials, took our order, and updated us on the status of our order. *Resolves problems quickly and to my satisfaction. We had no problems at our favored caf_, other than that the water bottle ran dry, but it was refilled quickly. *Delivers high level personal service. The reputation of this caf_ within the local community must be built on consistent high-level personal service. However, you can relax, as in the US you don't have to kiss your affluent clients on both cheeks. *Has my best interests at heart, whatever decision is being made. Don't you love it when a waiter recommends a lower priced selection from the menu? Ours did. *Cares about me more than just my investments (business). Our limited French didn't allow us to eavesdrop on the animated conversations our hostesses was having with each of her customers, but they were extensive and had to go beyond describing the lunch specials of the day. I imagine her asking about the children, where they went on vacation, and so on. Today you have the perfect playing field to differentiate yourself. Each of the 16 criteria important to the affluent, including the five above, are extremely important to the affluent but most financial advisors either aren't aware of that or aren't living up to the affluent's expectations. This goes beyond service. Today's affluent investors don't feel that their financial advisors are delivering the goods - period. But just delivering the goods is not good enough. That's represents the baseline, like serving good food in a caf_ -- you must differentiate your business through personalized service. If you would like a FREE copy of all 16 criteria our research highlights as important to today's affluent investor visit our free download center. (http://www.oechsli.com/rainmaker/interviews.asp?id=58) This is brand new, pre-released research. Enjoy! Once again, we want to thank all of you who have emailed comments and questions to us. We will continue to do our best to answer each one. If you have any topic suggestions or special requests, please contact Rich Santos, publisher of Registered Rep. and Trust & Estates magazines, at rich.santos@penton.com (mailto:rich.santos@penton.com). Advertisement ---------------------------------------- As an independent business owner with FiNet, you can have the best of two worlds: control of your own practice and wirehouse-level support and resources you don't want to lose. 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Elite Financial Teams is a must read for anyone looking to: *Refine team roles and responsibilities *Develop more efficient practice management *Bring in more affluent clients *Create client service models suitable for the affluent ---------------------------------------- Advertisement ---------------------------------------- LPL Financial offers unprecedented benefits for financial advisors, such as group health insurance, reduced transaction fees, a deferred compensation plan, unbiased research, superior technology and more. LPL Financial is the broker/dealer of choice for more than 11,000 advisors. Visit joinlpl.com. Member FINRA/SIPC ---------------------------------------- ---------------------------------------- Have you signed up for The Next Move? Registered Rep.'s new e-letter all about your career? With news and views on career planning you should not miss. Sign up for your FREE subscription now. 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