Five steps to give your practise the winning edge!
One of the most powerful presentations we’ve seen in recent times was one on ‘professionalism in the financial services industry’ presented at the Financial Intermediaries Association of SA (FIA) conference on leadership in the industry. The conference was held at Sun City and attracted a number of brokers and other participants in the financial services industry. Specialist business consultant, Pieter de Villiers, presented on what makes a modern financial services business professional with particular attention to future business strategies.
To set the scene, De Villiers identified two categories of intermediary. We call the first the ‘veteran’ who (for the most part) is all about image. Individuals who fit this category are all about the ‘look and feel’ of the business, which they identify as the most important factor for success. They are concerned with the way their employees dress, the standard of their business documents, the way their staff ‘behave’, the language used and the comprehensiveness of the product they sell.
The second category, or ‘new entrants’, are more result driven. They are less concerned with image and focus instead on competence. De Villiers summarises this trend, noting: “Professionalism is not an image – it is a competence!” One of the biggest challenges for the modern financial services business is to accommodate competence without sacrificing important aspects from the image mindset...
Five success factors for a ‘future’ business
De Villiers believes there are five factors that contribute to the success of a ‘future’ business. In today’s newsletter we provide a summary of these competencies. Your challenge is to see how well your practise measures up.
1. Speed is essential
Today’s consumer wants instant gratification. And it seems yesterday’s consumer was keen on speedy assistance too. Survey results show that the first company to supply the quote wins business 71% of the time. The company that resolves issues “in real time, the first time and every time” enjoys a huge advantage over competitors. One of the best ways to speed up the processes in a financial services business is to eliminate the need for forms. De Villiers supplies some examples of how business processing has changed in the last quarter of a century. In 1972 it took between five and nine weeks to process a home loan application; today it takes just a few working days. And insurance applications took up to seven days to complete while today’s consumers can obtain cover in as little as seven minutes!
2. Precision pays
The second factor for success is to provide an exact service. De Villiers urges intermediaries to focus on time, engineering, delivery and communication in their businesses and warned of painting clients with the same brush. Knowing what your customer wants is one of the essentials for create a precision business.
3. Differentiate your services
A future business takes great pains to answer the question: “What makes us different?” A feature that distinguishes your business from that of your competitor will give you a significant edge. As an example of differentiation, De Villiers mentions South African low-cost domestic airline – Kulula. Although not the cheapest operator, this company has grown market share with its ‘easy to use’ booking procedures. And Discovery Health achieved differentiation by changing from the traditional disease management company to a health management services provider.
4. Be time and location free
Future businesses are not hampered by time or location. To operate successfully in the modern world you have to ensure your consumers can reach you regardless of where they are or what time it is. Banks achieve this through the world of Internet banking… And although it will be more difficult for the insurance industry to do the same the trend is already in evidence. “A professional business does not have to operate face to face.”
5. Keep it simple
In Internet parlance the simple business is known as the ‘three click business.’ The simpler your processes are the better the interaction with the customer – and the better the customer’s experience will be. De Villiers mentions that “simplicity is the ultimate sophistication.”
If you can implement these five steps you are on your way to running a successful ‘future’ business.
Editor’s thoughts:
Listening to De Villiers’ presentation we were struck by one undeniable fact. The ‘future’ business that he talks about is already here. If you want to succeed in today’s fast paced financial services environment you have to drop ‘image’ for ‘competency’ and provide your customers with the solution they want in real time, the first time and every time. Do you agree with the five steps mentioned in today’s article? Add you comments below, or send them to [email protected]
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