by Tony Vidler.
How to stay on top of your game, get the results that you want in business, and maintain peak performance....it all comes down to having a system, or a process.
The formula is - like all good things - a simple one. 6 P's become your process, and lead to sustained performance, instead of the frequent ups and downs of business that can be so demoralizing and stressful.
It all begins with marketing of course - and marketing is the main thing. I recall hearing from Winston Marsh once that "you have to be a better teller of what you do, than a doer of what you do". He is right - it doesn't matter how good you are if nobody knows it. And they won't necessarily come and find you just because you are great - unless you are one of the absolute elite at the top of the game with a truly international reputation and strong personal brand. But even those people are constantly marketing...
The point of this system is to stay focused on the daily activities that create value and generate business. It is a cycle that doesn't stop. And it all begins with marketing - every day.
Promote:
Marketing should be a daily activity, not just an annual think-tank & planning session. Apply the strategy daily, and keep sending the message out to your target market continuously. For example: if your primary marketing strategy is to establish credibility and authority in a particular market niche and dominate that niche, then they need to see and hear from you continually - you have to be the voice that is listened to. A daily routine of providing content via Twitter and Facebook (both aimed at your target market), supporting your content and positioning on LinkedIn, might be your daily "promotion".
Produce:
The next most important thing is to generate revenue. Constantly. It is the next most important focus, and you must be doing that, and working upon doing more of it, daily. No matter how nice the fee or commission for any particular piece of work, it will be gone in no time. (I've seen many spend it twice - the day they make the sale it is often spent in anticipation, and then again on the day the revenue actually arrives). You have to keep selling. Marketing isn't enough, as that just provides the opportunity to sell. Selling gets the dollars in the door - it needs constant focus. You might do this by ensuring that you are in front and presenting to "x" number of people per day.
Pitch:
You have to continually top up that sales funnel. There is no point in having a heap of well qualified prospects that you are not doing business with, and there is even less point in not doing business just because you are worried you will use up all your prospects. At a personal level - the prospecting part of any sales process - you have to be pitching daily. Pitching just means "tell your story" to people - not corner them, or try and sell them straight away. You know that the best clients come from a well established, trusted relationship, and that can only be built over time. Take the pressure out of the business by ensuring that you are talking to people each day who will be future clients - not today's sale. You might do this by ringing and talking to to "x" people per day who are at different points in the sales or relationship building process.
Process:
Look for an area to create just a little efficiency within your business each day. aim for 1% improvements daily - not giant leaps forward. Incremental process improvement is easy, and far more quickly than you would think it leads to a very efficient business machine. It is the same approach as the ant trying to eat the elephant....just one bite at a time. You might do this by standardizing one letter, or paragraph for reports, each day that you can use continuously to save time or make the job easier in the future. Keep building and refining proceses for a more efficient business.
Perfect:
Work on the business, even if it is just a little, each day. Some time with the staff, the key suppliers, the centres of influence, the financial management, analysis of marketing efforts - there are so many things to do and continually work on in building a great business. Work on it constantly in easily digestible chunks (remember the ant and the elephant? it is the same principle).
The goal her is not "perfection", it is about continually perfecting and refining.
Plan:
Every day, review the activity plan. Not the business plan as such, but work the diary for the days, weeks and months ahead. schedule the work, know who you are going to call, know where you are going next.
...then get on and promote....
This simple daily routine will keep the wheels turning in your business, and ensure that all the important components in building a great business are being worked on - while keeping the revenue coming in the door.
Attaining peak performance is simply a matter of having a good process that focuses your time and effort in the right proportions on the right things. Then being able to get into the routine (habit) of applying it.
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.
by Tony Vidler.
Should Regulators trust some advisers to do the right thing? Or none of them?
This is the intriguing question which will be debated behind closed doors in NZ in the immediate future I am sure, following the latest round of financial services reform in Australia. The "Future of Financial Advice" (or FoFA as it has become known) has been a work in progress for three years, as Australian regulators do their latest bit to drive higher standards of client care and professional standards in their market.
Naturally there have been a number of contentious points there, and the usual mix of good intent mixed in with impractical rules, that have created debate and strong lobbying along the way.
One of the more contentious proposed rules from an advisory perspective has been the "opt-in" provisions. As is often the case, the rule-drafters have been driven to solve a genuine industry flaw (that of consumers paying ongoing costs for advice and/or service from within product fees or commissions, without necessarily being aware of it, or even receiving advice or service from those receiving the money). The method they chose to resolve the problem though was impractical, unfair and a logistical headache for adviser firms to implement - in the industry's view.
"Opt-in" requires the adviser to obtain periodic ongoing written consent from clients that they want the adviser to continue the relationship and receive agreed remuneration.
In principle that seems a fair thing. Though in practical terms everybody knows that consumers are just humans, subject to the same whims and emotions in general terms. The levels of client satisfaction and desire to stay the course with anything can be driven as much by the state of the economy or investment markets, whether we won the Rugby World Cup, or whether our boss is a complete twit, as much as whether the adviser is doing the job that they agreed to do in the way it was agreed to be done.
Logistically, the seemingly simple matter (in theory!) of getting the clients to confirm in writing once per year that they are happy to continue paying fees for ongoing advice, would be difficult. People are busy, and just forget to follow through on things. People go away, get sick, or just don't open their mail for weeks at a time. Clients - believe it or not - are often re-investing funds or sticking with the same product automatically year on year because they didn't bother to read a letter in time. And of course included within the "opt-in" provisions was a big stick for the adviser who did not obtain the written client consent within the required timeframe - meaning that it would become far too dangerous for an adviser to continue receiving fees or carrying on the relationship if that written consent was not obtained each year.
Logically one would have to expect that over time advisers would be having to disengage from otherwise happy professional relationships simply because they had not obtained the required consent at the right time in any given year. That cannot be a good outcome for consumers generally.
After much lobbying and debate, the opt-in provisions were amended to a 2 year period, instead of being an annual requirement. That change was an improvement to be sure, but all the flaws with this method of achieving client consent and aligning the professional obligations with consumer benefits remain.
In the last week though there has been an interesting twist. Interesting - and beneficial - for those advisers committed to working to the highest professional standards, and who are willing to pay the price to do so.
It should send a shiver down the spine of the many advisers who do not belong to a professional association, or who think they are fine just motoring along obeying the basic rules of the road that the FAA delivered.
Why? "Opt-in" passed, and has been included in the legislation in Australia. What happens there - particularly in terms of improving the immediate consumer experience in financial services - will influence regulators thinking here.
The really interesting point though: there is an exception to the opt-in provisions in Australia. The exception is that financial planners (in the widest sense) who are signed up to an approved professional code of conduct managed (with rigour) by a professional association are given a class exemption from obtaining the opt-in consents from individual clients.
In plain english: if you are an adviser who belongs to a genuine professional association, with high standards and the ability (and will) to enforce them, then you are trusted to do your job well and are relieved of some of the rules aimed at fixing the cowboy end of the market.
This is an excellent outcome for the many thousands of advisers who have invested in higher education, voluntarily operated at higher standards than the laws required for many years, have exposed themselves to the risks of getting it wrong in working to the highest standards - and who have demonstrated their commitment to doing their work as best they can.
This principle of applying tough rules across the market, yet providing class exemptions for segments of the market that have already demonstrated they have earned the right to self regulate to a degree, is sensible and practical. It is also the best possible method of ensuring that advisers who do operate on the fringes in terms of the business practices or standards become aware that there is actually real business benefit in voluntarily operating at higher standards than the minimums required by law.
We can only hope at this stage that this principle gets imported from Australia - that there are ways of raising standards generally, while recognising and trusting those who have already demonstrated their willingness to work at the highest standards. That would be good news for the local market.
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.
by Tony Vidler.
Advisers: Good advice process is not enough. Being technically competent is not enough.
You have to sell.
There, we said the dirty word out loud. "Sell". You have to sell if you are going to be effective at your job as a professional financial adviser.
Over the last couple of years there has been a shift in emphasis to providing advice that is centered upon "good process". In fact many advisers have become so focused upon the process that the advice itself to the consumer is almost hidden somewhere deep in the bowels of the process.
More importantly though, "selling" has become an ignored (or forgotten) skill....sales are deemed to almost be a bit grubby, and not worthy of professionals.
Too many advisers have erred so heavily on the side of deploying professional process that they have forgotten that one of their primary roles is to help facilitate a change in behavior, or habits, for their clients.
Think about it: if most consumers knew what was required to achieve their financial objectives, and had the ability to determine the optimal path, and had the will to create the necessary change by themselves, then there would be little need for financial advisers at all.
As an adviser you can have the strongest technical skills and knowledge base in the world, and it is almost totally useless if you never use it for the benefit of a client. You can have the ideal best practice advice process and standards of documentation - but never have the opportunity to display it.These elements are critical of course to acting professionally, and providing your services in a manner that is aimed squarely at doing the best work you can for clients.
However at some point in the relationship or engagement with the client, you have to get selling. You have to convince a client to take a particular course of action - naturally the course of action that is best for them. To do that effectively the adviser must utilize sound sales skills. On that basis I would argue that it is imperative for a professional to have strong selling skills - and to know when & where to use them.
During some recent discussions with a number of advisers it became obvious that for many who have entered the business in the last 5-10 years there has been little emphasis upon this aspect of their professional development. It truly has been treated as a "dirty word", and those advisers (and their clients) are the poorer for that lack of training and development.
For example, I have found myself explaining the very fundamental concept of the emotional buying cycle that most humans move through - and it has been a revelation to a number of very technically competent and highly ethical advisers. the oft-used acronym A.I.D.A. to describe this process that consumers move through emotionally is largely unknown to the new adviser generation.
A quick recap for readers: essentially the position you have with a consumer (who is not yet a client in the sense of having followed your advice) is that they begin from a place of blissful ignorance. They are not perhaps even aware of a particular problem or issue that you are aware of, let alone how it may impact upon them or what they can do to manage it. At the end of the process you are wanting them to act upon the logical advice to solve their problem. In between those two points though there are a series of steps that the consumer has to move through in logical sequence, if the advice is to be acted upon. It is this sequence, that is firmly in the realm of "selling skills", that many advisers seem to be oblivious to. The steps are:
- Awareness
- Interest
- Desire
- Action
First the consumer has to become Aware of the particular issue. The adviser uses sales skills at this point to create that awareness and get their attention.
Once the issue is firmly raised and on the consumers radar screen, then you have to create Interest on their part in the issue. Again, sales skills are essential in doing so successfully. You are wanting them to engage with you and the process of problem solving, and they have to be interested to do so.
At some point that Interest has to be converted into Desire on the consumers part to do something about it. They must want the problem solved, or the proposed solution that will bring the benefits they had not previously thought of. Transforming the consumers attitude from a place of being engaged (Interest) to one where they are assuming ownership and wanting it fixed (Desire) is pure sales skill. Technical competency is merely supporting the logic of the decisions during this process.
Finally, you need to just get on and do it - put the solution in place. Action must be taken to complete the advice process. Once again, this is the domain of pure sales skill.
The critical point of course is that "sales skills" and "professional advice process" are NOT mutually exclusive. In fact they are both essential components if one is to be an effective professional adviser who is actually providing practical solutions that lead the client to better outcomes.
Selling is not a dirty word. As a professional you have an obligation to have and maintain strong sales skills - and to use those skills effectively and wisely in the interests of the client.
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.
by Tony Vidler.
Free marketing always appeals, and it is often said that "any publicity is good publicity"? That's an exaggeration of course as not all publicity is actually good - some can cripple a business or brand. However, any publicity (or marketing) that is free AND where you can control the content has to be good.
Talking with advisers about the topic inevitably leads to the question:
"which social media platforms should I use?".
The answer (as it often is), is "it depends". In order to work out the right answer you need to understand the evolving trends, the broad differences between the most popular platforms, and then match that with your own skillset and target market.
Social media has progressed well beyond just being a convenient way of seeing the latest photo's of your overseas relatives, and the explosive growth of business and end-consumer users is phenomenal. Twitter grew from 6,000,000 to over 250,000,000 in just 3 years. Facebook has over 800,000,000 users now. Little old Trademe in New Zealand has over 700,000 posts per month on its message boards.
That's a lot of traffic and users engaging in the social media world. It's where you are most likely to find, and engage, likely future prospects for your business in a non-threatening and collaborative way.
The greatest benefit though for the business owner is the ability to grow your personal and professional network and reputation - which is valuable over the medium to long term. The connections you make, and the conversations you have with them, will provide good marketing opportunities. You will have an opportunity to engage with, and get to be known and trusted by, people you would not otherwise come into contact with.
Social media as a method of marketing is not totally free of cost of course - though it doesn't cost hard cash generally. It does however take some time and commitment from you. There are an array of really useful platforms and tools to help you manage multiple social media marketing efforts fairly rapidly and efficiently however - and many of them even have good free versions (e.g. Hootsuite), meaning you can manage the time commitments pretty well on a day to day basis.
For New Zealand businesses the 5 social media channels well worth considering are:
1. LinkedIn. For business to business connectivity this platform is without peer. If you want to be talking to business owners or executives/management then you need to be here. It is professional in its approach, there are interest groups for any market niche it seems, and there is a wealth of intelligence to gather. Linkedin appears to have the highest success rate of the social media platforms for generating new business.
2. Facebook. More than 2,000,000 users in NZ alone, it is without doubt the largest and best known social media channel. Particularly useful for engaging with consumers (as opposed to other businesses), and with an ability to provide quite a variety of content (images, links, video's, blog's). There is an abundance of evidence that consumers who engage with your business (or "like" you) on Facebook are far more likely to purchase from you.
3. Twitter. Still a little "wild west" in social media terms, as there is very little content control, and everything is short and sharp. It is essentially the internet in 140 characters or less...that is, there is an abundance of useful and interesting content on virtually any topic you can think of. It is extremely useful as a resource - communications, content sourcing, becoming a thought leader - or following thought leaders. An often under-estimated element is that it is often humorous and a little light-hearted, which is in itself excellent for a social channel.
4. TradeMe. Often under-estimated by NZ businesses as a marketing platform, beyond the obvious use as a place to sell the old office furniture. It truly is the social channel that Kiwi's flock to, and apart from the core auction-focus, there are advertisements, message/bulletin boards & market intelligence in abundance. Distinctly useful for any business aiming at retail consumers - they are here in their thousands by the minute.
5. You Tube. This ones surprises business owners when you talk about it, but it is the second most popular search engine in the world (after Google). This is a place where consumers go looking for things, so if you are looking for consumers.....here they are. Interestingly there is strong evidence indicating that businesses that use video in their marketing (via website, YouTube, etc) have far greater consumer engagement and dramatically increase the chances of obtaining new business. Most consumers seem to prefer watching a video rather than reading a detailed article.
Whatever social media platform appeals to you in your marketing, it is important to look at it as an element of the overall marketing strategy for your business. The more marketing tactics that are interwoven, the more effective the overall marketing strategy will be. It is smart business to create content for your own website, and then share it via social media channels (plural!) and extend the reach of your message. The social media platforms can extend the reach and knowledge of your brand beyond the passive "billboard" that many business websites are.
So; 2 big tips for being effective in your use of social media:
* Be Relevant. It is social - so remember to engage with people, communicate, inject fresh ideas into the mix, and above all - be interesting.
* Don't blatantly (and boringly) self-promote. Nobody wants to be bombarded with advertising, and people will switch off to your brand entirely if their only experience is being directly marketed to constantly. By all means let people know what you do - but no more than a third of the time in your communications. Make the rest interesting, engaging, entertaining, informative and so on. It has to be worth their while to continue following you.
Final thought: don't expect overnight dividends. It may take many months of actively engaging with the market before you have established the credibility and authority for your target market to decide you are worth hiring. But hang in there, with relevant and useful content being delivered to your target market via multiple mediums, you will become a trusted expert, and logical person to turn to for their business needs.
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.
by Tony Vidler.
For quite a while I have been talking to financial advisers about how the marketing world has changed in recent years - and how their own marketing methods have not (generally speaking).
In short, I have been beating the drum for the advisers to consider social media and digital marketing platforms as a core part of their communications with consumers and customers alike.
Driving this belief that advisers are missing the most fantastic and low-cost marketing strategy available today is the fundamental concept of "that is where the customers are".
Basically it makes good sense to use the platforms and methods of engagement that the consumers themselves use. It's not rocket science is it? Go where the customers are if you want to find more customers.
Recently I saw a wonderful article from Strategi - "Social Media - an advisers double-edged sword". It was fabulous, and just what the doctor ordered. You see, I have been "missing in action" for a few weeks, distracted by & dealing with some family illnesses and the like. Not a pleasant time for anyone concerned, and what I really needed was a jolly good laugh....and I got it courtesy of this excellently idiotic article.
The essence of the joke was the (I presume) serious suggestion that financial advisers can benefit most from using social media as a listening outpost only. They are urged not to comment or participate, but merely tag along as a listener to what everyone else is doing - particularly their competitors (other advisers). The advice therefore was listen, but don't talk. That is clearly advice from someone who doesn't understand a thing about social networking.
The 2 primary purposes of social networking are:
1. be social
2. network
Forgive me for stating the bleeding obvious, but it obviously wasn't bleeding obvious to everyone commenting on the subject.
How does one be social (in any sense) by not conversing or engaging with others? You'd be the total life and soul of the party and dozens of folk would want to invite you into their lives if you spent your entire time eavesdropping on conversations and not contributing anything. That's just the sort of person I'd like to do business with. Yeah, right.
How do you network, or engage with other people for mutual benefit, if you are intending that it be a one way street? That is someone to trust with your wallet isn't it?
It was the most ludicrous piece of marketing advice I have seen for some time - and there have been some seriously bad contenders. This was a doozy though.
The point has been fairly made for some time in a number of jurisdictions that there is risk for any business when using social media as part of their marketing - and perhaps moreso for financial advisers. Clearly there are compliance issues that every adviser must be mindful of - with ANY of their marketing. There are standards expected of an adviser to be truthful and honest in ANY of their advertising. Should an adviser provide personalised advice to any consumer with a megaphone in a public place, they are a goose (at the very least). Advisers are smart enough to know that by the way, and probably don't need to be told that any further.
The rules that apply to advisers in terms of their duty of care to clients, or restrictions upon providing personalised advice without engaging in the appropriate process, or respecting privacy issues apply to anything they do. Naturally that includes social media activity.
One of the (slightly) amusing things about this particular concern of the moment is that the doom & gloom brigade are suggesting there is an issue with advisers use of social media. It is "alarming" no less according to Strategi - who by the way are able to provide an audit and compliance sign-off for any alarmed advisers and then provide guidance on how to go about getting it right. (Free plug for Strategi there!).
I'm no expert on these things, but I am an active user of social media myself. Not necessarily a fantastic user, but with over 900 LinkedIn connections, 800 Twitter followers and about 1200 regular e-zine readers - pretty much all financial services (or associated) folk - I do tend to see enough of what people are using social media for to have an idea about whether there is an alarming problem or not in this industry.
There isn't. It's a load of cobblers (as far as NZ is concerned anyway).
I cannot recall a single example on LinkedIn, Twitter, Facebook or in email newsletters where advisers are being misleading, deceptive or providing personalised advice to consumers. I do not see too many blogs, so perhaps there IS an alarming problem there. However the few blogs I do read present no issues that I can see, so I am willing to wager that there is not a blogging problem of epic proportions either.
As far as I can tell, the few advisers who do use social media actively are quite mindful of their role and use the networks as a means of providing useful content and interesting information of a general nature. That is excellent content marketing, and they are to be congratulated.
One of the most critical things that advisers need to do is engage with consumers, and be a reliable source of excellent and useful content.
A relatively recent study revealed that only 19% of New Zealanders' cite the financial adviser as their primary source of financial information. We have a long way to go - and providing quality content is the key - before we are even close to being seen as a credible information source to the majority of the market. Content marketing via social media is in my view one of the areas where the financial advisory community can easily and affordably add to the financial literacy of the nation - which is an excellent outcome.
For any advisers considering using social media as part of their marketing strategy, here are simple rules (and they are provided free!):
1. Be honest - as you would be in any other marketing
2. Be mindful of privacy issues - as you would be in any other marketing
3. Personal advice should be given to people personally, not broadcast via satellite. But you knew that.
4. Engage with people. Social networking is about being social, and conversing - that's a two-way thing. But you knew that.
5. Don't be a social media peeping tom. It's despicable and nobody likes them. But you knew that too.
And one final rule for business in general:
Don't listen to self-interested and inane advice. Your clients won't, and nor should you.
Like this? Then share it with others...or visit www.strictlybiz.co.nz for loads more useful and interesting information.
The formula is - like all good things - a simple one. 6 P's become your process, and lead to sustained performance, instead of the frequent ups and downs of business that can be so demoralizing and stressful.
