Setting up a platinum service level for sterling clients

It is a very competitive market out there right now, with financial advisers offering a range of investment options and insurance products.

It is a very competitive market out there right now, with financial advisers offering a range of investment options and insurance products. A number of studies have shown how important it is to provide timely information and communications, especially to top clients, with all the market uncertainty and turmoil.
An easy way for a financial adviser to differentiate his or her practice — and set clients’ expectations — is to create and communicate service levels. Often, advisers and teams don’t take the time to define what is important to their top clients and end up spending most of their time with less profitable clients. The challenge: How do you define the value and services you bring to your top clients, while maintaining communications with all clients?

The solution: Think outside the box by creating two or three different service levels for clients.
As advisers, we assume that our clients know the value we bring to them. Consider this: If a top client’s brother asked about the value of working with your practice, what would be the response? Don’t assume that clients, especially top ones, know the value you bring. Commit to service levels and put it in writing. This month, INPractice will define these services, provide specific action steps and share best practices from other top advisers. The goal is to create high-level services that tell important clients you are putting on the Ritz for them.

The travel industry offers preferred guests a variety of services and upgrades, exclusive concierge services, elite travel arrangements and lifestyle services. It is important to decide the services your team will provide, and identify strategic partners who can provide the rest more cost-effectively.
Here are the steps on which to focus over the next three weeks:

Week 1: Establish platinum services — putting on the Ritz
Week 2: Commit to platinum services for top clients (the 80/20 rule)
Week 3: Continuously communicate services to clients

Week 1: Establish or redefine current top client services
This is the hard part — where do you start to identify the platinum services clients need and want? By asking them. This is where using a Top Client Background Chart provides value to your practice. It allows you to capture important client information, track their interests and identify the services they need and want. Keep in mind that consistent communication is important to clients. When they feel like they’re getting the silent treatment, they often stop working with a practice.

Get started
Start by reviewing your contact management system or Top Client Background Chart to identify common interests of your most profitable clients. This is an ideal time to update your chart or start one. Focus on the top clients representing 70%-80% of your revenue. Ask them to cite three important services they would like to see your practice offer. Ask only for three, because it will keep your services manageable as you combine the results. Also, e-mail gives clients a chance to think about what is important. Ask for responses by a specific day.

Now combine your results and create a list of 10 services your top clients have identified. In a practice with 200 clients, the list of top clients receiving the platinum services will be about 40. Next, see if you can cut back the list to five or six top services. At a recent workshop, advisers acknowledged that it’s not possible to provide these services to all of their clients, even though they would like to. Don’t let your practice lose top clients due to lack of service. After settling on a handful of the most valued services, use these premium offerings to create a closer connection with clients. Here are a few services to consider:

1. Meeting with clients’ attorneys to be sure clients’ wills and trusts are in order.
2. Annual insurance review to check coverage and beneficiaries.
3. Client appreciation events tied to their lifestyle interests, including museums, cruises and family gatherings.
4. Open house at your home or club with a local artist, gourmet chef or wine tasting.
5. Generations of trust to position your team members and align different generations (providing assisted living solutions, for example).
6. Client advisory board — how do your clients view your practice and services?
7. Newsletter update in hard copy or e-mail.

Adviser success story:
An adviser from a workshop last year put the service levels into practice and shared them with his branch manager. She sent a letter to her top clients identifying the levels and reinforced how important they are to the practice. The services were created just for platinum clients. The result? Other clients wanted these services, too. In fact, clients who didn’t qualify for the top-tier services moved their insurance plans just to qualify.

Remember, the best clients want to have defined services. Don’t assume that clients know what you offer.

Next week, we finalize the platinum services you’re offering to clients, and put a timeline behind the activities — along with a budget.