Client proposition toolkit liberty

OWN YOUR PRACTICE
CLIENT PROPOSITION TOOLKIT
MODULE 2

2 OWN YOUR PRACTICE
Module 2
Module 2
In this module of the “Own your Practice RDR Toolkit” we explore the key elements
of a compelling client proposition and consider what high net worth clients really
want, need and value.
clients value, do lots of it and get rich!”
Learning outcomes:
• Where many advisers are today
• Evaluating your current proposition
• The fundamental problem
• What clients say they want
•
•
• Some tools to help
• Actions for implementation
CREATING YOUR COMPELLING CLIENT PROPOSITION
What do I get for my money?
Post RDR, this is a question that clients will begin to ask with increasing frequency. And, it’s not an unreasonable question. In a more
transparent pricing environment where advice charges have to be agreed with the client (not set by providers), it is essential that you
have a compelling answer to this question.
Clients will not be prepared to pay to be sold to. A product sale mentality will no longer work. It has to be about making a real,
adviser will be critical.
A clear documented client proposition, which explains to the client what you are going to do for them and the range of services you
Your proposition needs to be written in language the client will understand and needs to explain, not just the service elements, but
Where are many advisers today?
genuinely value.
Coach (as in attack, rather than outrageously rude!) for the Seattle Seahawks, the American football team. In his work with advisers,
Steve explains that the Seahawks fans really weren’t interested in the technicalities of each individual play, or how many hours had
moving towards the opposition goal line, ten yards at a time, they were happy. The how was irrelevant. I agree with Steve that in
© Liberty Group Ltd 2015. All Rights Reserved

Module 2
3OWN YOUR PRACTICE
Evaluating your current proposition
Many advisers seem to struggle to create a high value client proposition that allows them to deliver on a consistent basis. The
starting point is to take a step back and think long and hard about what you already do for your clients and how much value those
things add from the client’s perspective. Here are some quick questions to get you thinking about what you do, how you do it and
whether it might be perceived as compelling by clients (and introducers):
• What do you currently do for clients and how consistently is it delivered?
• What degree of variation is there across the business?
• What is said to clients at the point of sale/advice?
•
• As a client, would my experience be the same irrespective of which adviser I happened to be working with?
• Do clients understand your proposition and what they can expect from you?
•
• Could an informed third party easily and readily identify a potential “ideal client”?
•
experience and the impact that these have on their lives?
• Do you provide some “value” in advance by providing assessment tools, that assist clients and potential clients to pinpoint their
core problems?
• Is your proposition compelling to you? Do you believe in it, even on the days when others don’t?
• How are you investing to make sure that you stay ahead of client needs and requirements in order to ensure that you continue to
provide outstanding service and fantastic value for money?
Answering these questions will at least help you to identify where the gaps are in your proposition and your ability to deliver it time
after time after time.
The fundamental problem
In reality, in my experience, advisers often deliver service elements that their clients simply don’t want or frankly don’t need. Reams
of fund factsheets at annual review meetings, for example, would be a case in point.
Whilst the odd detail-conscious client might value such information I would controversially suggest that most won’t. Often this
income or fees. Whilst I’m no compliance expert, I don’t accept that either is the case.
The impact of providing services that clients don’t really need, want or value (or not providing services that they do!), is illustrated in
the table below, which is adapted from Karl Albrecht’s “Client Satisfaction Window”.
Client doesn’t value Client values
Client gets Bulls-eye
Client doesn’t get Happy days! Goodbye and good riddance!
How do you establish which elements of your service clients value? Simple, just ask them. Whether that is through a formal survey,
a client feedback forum, or more informally at a client review meeting really doesn’t matter, though the formal routes will provide
more feedback, more quickly.

4 OWN YOUR PRACTICE
Module 2
Once you’ve collected and collated your feedback, ask yourself the
following four questions.
1. What are you currently doing for clients that should be eliminated?
2. What are you doing for clients that should be reduced?
3. What are you doing for clients that should be improved?
4. What should you start doing for clients that you don’t do currently?
It is crucial to follow up with clients to communicate the positives and
to tell them about the changes you intend to make as a result of their
feedback. You should also consider summarising the results for your
• Satisfaction
• Expectations
• Preferences
• Interests
• Referral Propensity
What clients say they want
There has been a marked change in the expectations of clients over recent years brought about by the developing culture of
changing level of client expectation. Whilst this data is related to the UK market, it does contain some helpful insights and lessons
1. 24% of clients have stopped doing business with a company within the
last six months due to a bad client experience. Key reasons include
poor product or service quality, rude or disinterested employees and
not being able to get hold of someone to solve a problem. (Source: Satmetrix)
2. Only 2% of clients feel that client service experiences generally exceed
expectations. A third say they consistently fail to meet expectations.
(Source: American Express Client Services Barometer)
3. 73% of consumers end a relationship due to poor service with the main
root causes being: having to repeat information, having to wait too long
value to the business. (Source: Genesys)
The same collection of research suggested that good client service includes:
• Listening and understanding what the client is looking for
• A friendly approach
• Making sure the client feels valued
•
For example:
• 74% of clients are prepared to pay more for a better service (Source: Retail Eyes Report)
• More than 50% of clients will spend more on products and services if the service experience was guaranteed to be first
class (Source American Express)
• Consumers are willing to pay a 7% premium for the privilege of good client service and 70% say they would do more business with
(Source American Express)
• In a business to business environment “delighted” clients are five times more likely to re-purchase than merely “satisfied”
clients (Source: Ipsos Loyalty Report)
How do you establish
which elements of your
service clients value?
Simple… just ask them!
74% of clients are
prepared to pay more
for a better service

Module 2
5OWN YOUR PRACTICE
So what does all this mean for an advisery practice? The data seems to be suggesting that:
• Client expectations are rising and are likely to continue to do so
• Being easy to deal with and responsive to clients is crucial
• Consistently providing a personalised and tailored experience to clients is key
Doing so consistently (and it will be those who do, that succeed and prosper in this more demanding post RDR environment) will
create competitive advantage and move price much lower down the client’s agenda.
World Wealth Report
The Cap Gemini/Merrill Lynch Global Wealth Management, 2009 World Wealth Report, (a global study of the growth in the number
and wealth of individuals classed as High or Ultra High Net Worth), provides further helpful insights into what clients say they want.
additional requirements of this key group of clients and how that can help
you to decide what changes you need to make to your client propositions,
communications and service delivery. What are these clients now looking for
from their advisers? The report says:
• They want to be more involved in their investment choices
• They want more specialised advice
• They are demanding full product disclosure and transparency
• They are more concerned about the downside risk
• They are validating advice through other sources (friends, colleagues and other advisers!)
• They want products they can understand
•
High Net Worth (HNW) clients are clearly looking for a more integrated approach to meeting their needs, built around specialised,
independent, transparent, simple advice. Are you really providing these things to your clients or are you just going for the easy or
immediate product sale?
In their 2012 report “UK Wealth Management at a Tipping Point?” conducted amongst 41 CEOs across the wealth management
sector and 300 High Net Worth individuals, KPMG found a discernable trend amongst investors towards managing their portfolios
themselves. The research also suggested that investors are more:
• Rigorous in their dealings with wealth managers – holding them to account for the fees they charge
• Curious about robustness of institutions holding their money
• Focused on value for money
• Sceptical about pricing and product
• Willing to use low cost asset classes
• Willing to run portfolios on “execution only” platforms
•
•
• Willing to split their portfolios (and at much lower levels)
• Price sensitive towards Total Expense Ratios
They are also demonstrating a greater desire to understand what they are paying for
Clients want improved
reporting and more
frequent updates

6 OWN YOUR PRACTICE
Module 2
MAPPING THE CLIENT JOURNEY
Helping the client to see what your advice process looks like and involves, by mapping the typical stages of the client journey
from the moment an initial enquiry is received all the way through to the point where the advice has been fully implemented, is a
great way to create a really high quality experience that feels personal to each client, but is supported by a consistent, scalable and
repeatable process.
The crucial thing to remember is to look at the whole journey from the client’s perspective. Climb inside the mind and skin of your
client and create the sort of experience you’d like to have, if you were them. An example of this is shown below with each step
described so that the client understands what is involved at each stage.
market to identify suitable solutions. We will also create a recommended investment portfolio tailored to your goals and tolerance for risk, taking
any existing arrangements or assets into account. As you can appreciate, with the work involved, this stage can take a number of weeks.
RESEARCH AND RECOMMENDATIONS
recommendationsabouthowtogrow, manageandprotectyourwealth.Thisisalsoanopportunityforyoutoaskanyquestionssothatyouunderstand
exactlywhatwearerecommending,andwhy.Ifyouarehappywithourrecommendations,wewillproceedtothe nextstage,whichistoimplementthem.
PRESENT RECOMMENDATIONS
Making sure that everything stays on track is every bit as important as the recommendations and their implementation . We will schedule regular
any changes in your circumstances, goals, legislation or markets. The frequency of these reviews will be dependent upon your personal needs
and the level of complexity of your situation.
ONGOING REVIEW SERVICE
our services and process and outline our charges so that you are clear about our fees. The purpose of this meeting is to help you make an
informed decision about whether we are the right adviser for you. If you decide to engage our services, we will then complete our client
agreement and ask you for a 50% deposit in respect of the planning work and start gathering all the data we need.
INITIAL MEETING
to do is sign the forms, but unfortunately, where your medical history is involved, we have to leave those questions to you. We will submit any
applications and paperwork to the relevant providers and track the progress of each application regularly and keep you informed throughout.
We will also check that your instructions have been implemented accurately and that all the documentation received is correct.
IMPLEMENTATION

Module 2
7OWN YOUR PRACTICE
revenue stream, be at the core of your client proposition. I always urge our consulting clients to see their proposition as their
promise; a promise that should never be broken. But what are the key elements of a compelling client proposition?
1. Frequency of meetings
How often will you sit down with clients to review their plan/investments/situation? For lower level clients or those with simple
years) is likely to be perfectly reasonable and acceptable. For wealthier clients or those whose circumstances are more complex,
then half yearly, or even quarterly might be more appropriate. I have one IFA client who sees his top client every month! It might also
be appropriate to conduct client reviews over the phone (or Skype) where client revenues don’t justify face-to-face, or where that
approach suits the client.
2. Accessibility
Outside of formal reviews, what level of adviser access will each client
segment be entitled to? Can they phone you or email you whenever they
need to? For some clients direct access to you whenever required will be
highly valued. For others, you might want to direct them to your team initially,
so that you only pick up those tasks that they can’t handle. Also consider
clients? Clearly if your very best client phones you with an urgent matter, you’ll
probably drop everything to deal with it.
3. Reporting format
Remembering what the above research tells us about what clients want, it’s important to ensure that your client review reporting
format recognises their needs and preferences. For me, too many advisers “bet their business on the market” and focus solely on
investment performance, which clearly they cannot control. Reporting focused on the goals the client is trying to achieve is much more
likely to reassure clients that everything is on track and under control and that you have their goals, right at the centre of your thoughts.
4. Services
advice, which might be as simple as ensuring clients have made the most of all the allowances and exemptions available to them. You
might conduct an annual savings and debt review to ensure that their cash deposits are working as hard as possible. You might share
strategic updates and end of year tax information with the client’s accountant. Even if you use an outsourced investment solution
you’ll likely be monitoring the performance of each model investment portfolio. My guess is that you probably already do all of these
things and possibly more, and that’s my point.
thinking carefully about everything you do for clients right now, day in day out. It’s about recognising all the value within what you
currently do, packaging that up and making it tangible. How do you make it tangible? Write it down! Create a document that explains
what you will provide, which helps them to recognise and appreciate the value and tells them what they can (and can’t) expect.
wasted on others.
intend to provide for your very best, highest revenue clients. Let’s call them your “A Class” clients.
Class” clients and then, if appropriate, repeat to create your “C Class” service proposition.
Once you think each proposition makes sense, ask yourself these four questions:
1. Is it compelling? (Does it explain the value you deliver, not just the service)
2. Are you in complete control of the delivery?
3.
adviser accessibility)?
4.
Recognise the value of
everything you do and
make it tangible

8 OWN YOUR PRACTICE
Module 2
SOME TOOLS TO HELP
1. Client Satisfaction Matrix
Use this tool to stimulate your thought process about what you currently provide for clients and whether, on balance, they are likely
to value it. Remember you’ll have to ask them to know for sure. Don’t fall into the trap of assuming that you know what they value.
Where’s the evidence?
This tool is adapted from a model developed by Steve Moore of Moore Solutions.
Clients Value and Get (Bulls-eye)
Personal Contact
Peace of mind/freedom from worry
Financial Organisation
Education
Performance reporting
Access to specialists
Communication (relevant)
Responsiveness and accessibility
Advice & Guidance
Good service
A relationship
Clients don’t Value but Get (Wasting resources)
Techno-babble (Alpha/beta/absolute return)
Jargon
All the bloody paper
Fund Factsheets
Endless irrelevant communication
Unsolicited, irrelevant or dull newsletters
To be sold to
To know how clever you are
To have to explain themselves over and over
Meetings that resemble endurance tests
To be treated the same as everyone else
Surprises
Clients Value but Don’t Get (Goodbye)
Goals-based reporting
Clarity of goals
Just see the ball move
Value for money
A clear track to run on
Outcomes-based advice
To see that everything is on track
Concise simple jargon-free explanations and advice

Module 2
9OWN YOUR PRACTICE
2. Ongoing review service design tool
Use this tool to start to piece together the key elements of your ongoing service to clients. Remember, it’s not about dreaming up a
Proposition component Your proposition
Monthly?
Quarterly?
Half yearly?
Annually?
to clients between their scheduled face-to-face meetings (face-to-face/
email/telephone)?
an additional fee?)
What will the content/agenda for each meeting look like?
What format will client reporting take? Will the focus be goal-based or
performance-based?
What information will your clients want/need/expect at their review
meeting?
What sort of response times can you commit to for emails and phone
calls? How will this vary segment by segment?
How frequently is the client’s portfolio being monitored, reviewed and
rebalanced? (Whether reported or not). Will the client’s attitude to risk/
capacity for loss be reviewed regularly? How often? Let’s make sure they
know about it.
Will clients automatically receive your newsletter (if you do one)? How
frequently will they get it?
Do you/can you ensure that clients optimise the use of all their various
tax allowances?
Are you prepared to liaise with your client’s other professional advisers
such as accountants to make sure that everyone who matters is in the
picture (or to recommend such professional advisers when the need
arises)? Under what circumstances?
paperwork they’ll receive over the course of each year?

10 OWN YOUR PRACTICE
Module 2
3. Our journey together
Initial Meeting
• The purpose of this meeting is to help you make an informed
decision about whether I am the right adviser for you.
•
want to address and your long-term goals, to establish
whether we can help.
• We will explain our services and outline our charges so that
you are clear about our fees.
• If you decide to engage our services, we will then complete
our client agreement and start gathering all the personal data
and information we need.
Fact-Finding Meeting
•
and goals in more detail and collect all the information
we need to carry out an in-depth analysis of your current
• This information will be used to identify any immediate
priorities for action. It will also help us to create your personal
• We will also establish your attitude to risk and ask you to
complete letters of authority so that we can get accurate
information about any current investments and other
Plan Presentation Meeting
• Once our research and recommendations have been
• This is also an opportunity for you to raise any concerns and
ask any questions so that you understand exactly what we
are recommending, and why.
• If you are happy with our recommendations, we will proceed
to the next stage, which is to implement them.
Analysis, Research and Recommendations
• During this stage, we build a clear picture of your current
recommendations to help you achieve the goals and
•
most suitable solutions to help achieve those goals.
• We create a recommended investment portfolio, tailored
to your goals and tolerance for risk, taking any existing
arrangements or assets into account.
• All this information is then used to prepare your personal
• As you can appreciate, with the work involved, this stage can
take a number of weeks.
Implementation
•
complete as much of the paperwork as we can on your
behalf. Often, all you will need to do is sign the forms, but
unfortunately, where your medical history is involved, we
have to leave those questions to you.
• We will submit any applications and paperwork to the
relevant providers and track the progress of each application
regularly so that your plan is put in place as smoothly as
possible. We will also keep you informed throughout.
• We will also check that your instructions have been
implemented accurately and that all the documentation
received is correct.
Post-Implementation Meeting
• This meeting is our opportunity to ensure that you are happy
with the planning that has taken place and to help you to
understand any related paperwork you will have received as
a result of the implementation work.
• We will also discuss with you the level of ongoing service
you require to make sure the plan stays on track and remains
relevant to your changing circumstances.
Ongoing review service
• Financial advice is “perishable”. Making sure that everything stays on track is every bit as important as the initial advice and recommendations
we make
.•
• The nature and frequency of these reviews will be dependent upon your personal needs and the level of complexity of your individual situation.

Module 2
11OWN YOUR PRACTICE
4. Example “A Class” Client Value Proposition
will be able (or will want) to deliver every element listed. In fact, there will be other services that some advisers provide which aren’t
INITIAL ADVICE AND IMPLEMENTATION
independence.
Initial Advice
Financial Reality Check A comprehensive analysis of your current position to ensure you know exactly
where you are today
Key goals and objectives
objectives
Current plans summary Asummaryofyourexistingpension,investmentandprotectionarrangements
whichwillidentifywhatyoualreadyhaveinplaceandwheretheremaybeany gaps
Portfolio performance analysis An impartial assessment of the performance of your existing funds relative to
other similar funds, to ensure the money you have already set aside is working
hard for you
Tax planning review
strategies and available allowances
A comprehensive analysis of your current and likely future income and
expenditure which will identify critical planning priorities for creating a secure
Attitude to risk analysis An analysis of your attitude to risk and capacity for loss which will inform our
portfolio construction recommendations and ensure they are within your
personal comfort zone
Bespoke plan We will walk you through your personally tailored plan with recommended
long-term. We make sure you fully understand your plan before implementing
any recommendations.
Implementation Service
Pre-populated forms We will make things easier for you by completing all the required paperwork
as fully as possible on your behalf. However, we cannot answer any health
check and sign the forms
Application checking and submission We will check and submit completed forms and applications to relevant
parties either online or by post
Follow through We will chase all your applications through to completion in a timely manner
to minimise delays
Regular updates We will keep you informed of all key developments, progress or requests for
further information as appropriate
Collating & checking
details to ensure that they have been processed accurately

Module 2
Personal Financial Summary Spreadsheet
and providers so that you have all the details you need in an “at a glance”
format
Suitability Summary
have been selected as suitable for you and your circumstances
Professional liaison We will liaise with any of your existing professional advisers (such as solicitors,
ordinated
Professional referral Where required, we will refer you to suitable, trusted professionals for any
Ongoing Service
Annual Review/Forward Planning meeting with
your adviser at a location of your choice
Typically, in this meeting we will:
•
• Review your current and future income and expenditure forecast
• Update your personal “balance sheet” of assets and liabilities to help you
understand exactly where you are relative to your goals
• Provide a year by year record of your progress towards building your wealth
• Consider potential “What if…?” scenarios
• Update your Personal Financial Summary spreadsheet
Interim Reviews with your adviser at a location
of your choice or by Skype/Teleconference if
preferred
Half yearly, we will undertake a further review of your portfolio either face-to-
face, by teleconference or using web based technology. In view of the level
of assets under advice, we believe that annual reviews are “too long between
drinks.” We therefore provide an interim review, which is focused on ensuring
Unlimited direct telephone and email access to
your adviser
We want you to feel able to talk to us when you have questions or concerns,
without worrying that you might be incurring additional charges… you won’t.
It’s all part of the service. What’s more, if you’d prefer to organise an ad–hoc
Skype video conference, just call us and we’ll schedule it.
24 hour acknowledgement to your emails and
telephone calls
query so that you know we are dealing with it.
Portfolio Monitoring Through regular ongoing performance reviews of your portfolio as a whole
and the underlying investments within it, we will aim to ensure that your
portfolio continues to meet your objectives and remains in line with your
ability and willingness to tolerate risk. The key elements of this service include
• Investment and fund research
• Investment Committee Review meetings
• Regular asset allocation strategy reviews
• Fund selection and monitoring
• Portfolio Rebalancing
• Free fund switches
• Quarterly valuation reports
• Free online access to portfolio valuations 24/7

Module 2
13OWN YOUR PRACTICE
Catastrophe Planning
of your premature death or disability.
Savings and Investment Planning To identify and recommend ways of making any surplus income and capital
earliest possible date.
Liaising with your other Professional Advisers
advice in a co-ordinated & professional way. We will therefore (if you wish and
feel it is necessary) meet jointly with you and your professional advisers. We
can also providing strategic updates & end of year taxation information to you,
your Accountant & any other Professional Advisers.
We will also be pleased to recommend suitable high quality, reliable and
trusted professionals as required.
Tax Planning Although not tax advisers, we will help you to ensure that your tax allowances
investments that are available and appropriate to you.
Inter-Generational Planning We understand the importance of assisting you to build strategies to
preserve the value of your estate. We will assist you in creating tax effective
gifting strategies and be pleased to meet jointly with you and your family (if
required and at the appropriate time) to help create strategies for “life after
death” planning.
You can be assured that should the worst happen, we will deal sensitively
with your family and assist them in understanding and planning for their
financial future.
independence.
Retirement Planning We will ensure that you understand the options available to you at retirement
and that you are able to make informed decisions to ensure your retirement
We will endeavour to ensure that you understand changing legislation and the
impact that this has on you.
The Concierge Service
life. We will get you and keep you organised by providing a personalised folder
for the safekeeping of all your key documents. We will also
• pre-populate all application forms for you
• update your various investment providers should your details change
•
• help you to make sense of the mountains of ongoing paperwork (and tell you
what to keep and what you can safely destroy)
•
•
of your death

Module 2
ACTIONS FOR IMPLEMENTATION
1. Use the “Client Satisfaction Matrix” tool to analyse what you currently provide for clients and whether, on balance, they are likely
to value it. Remember you’ll have to ask them to know for sure. Don’t fall into the trap of assuming that you know what they value.
Where’s the evidence?
2. Use the “Client Proposition Development “tool to start to piece together the key elements of your ongoing client proposition.
3. Use the Example “A Class” Client Value Proposition to help you describe each element of your service proposition in language that
4.
service levels. More than that adds unnecessary complexity.
5. Then ask yourself these four questions:
a. Is it compelling? (Will clients see the value?)
b. Are we in complete control of their delivery?
c.
d.
6.
Now you’ve got a client proposition!
Module 3
great value by your clients. In particular we will consider the following questions and issues
• Where in the client journey do you add most value?
• At what points in that journey are you going to charge for what you do?
• What pricing approaches are appropriate at each stage?
• What are the advantages and disadvantages of each?
• An example of end-to-end pricing framework.
We would like to thank Steve Billingham for providing us with the
information and modules for the Own your Practice workshops.

Notes

Client proposition toolkit liberty

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