In an industry that is severely affected by a largely negative economic environment, trust becomes a major factor as clients need to know that the advice they receive will assist them in achieving their dreams and financial goals.
Building this trust is an important element of an advisers role in the industry; this can only be done through performance excellence. Towards the end of 2015, Old Mutual hosted its annual CoDA (Circle of Distinguished Advisers) Awards Event to acknowledge and honor a select group of financial advisers who strive for excellence.
CoDA advisers are continually measured on their dedication to creating holistic financial plans, meeting both the short and long-term needs of their customers. It’s about understanding the individual needs of each and every customer, and creating a balanced financial plan to meet those needs.
FAnews spoke to a few of the top achievers at the 2015 awards to gain some key insight into their success stories.
Be client focused
Being client focused has been a major focal point of the Financial Services Board over the past five years since the introduction of Treating Customers Fairly into the market. But how important is nurturing a client focused relationship?
“Client service is extremely important as it nurtures a relationship with a client. Without service, great advice would never be implemented. Great service leads to clients being advocates by introducing their friends and family to my practice,” says Deon Schoeman.
His sentiments were echoed by fellow adviser Petri Joubert. “Client service is what our industry is all about. Great client service is an evolving process to always get better at what I do and to always do more than what my clients expect from me.”
Money matters
A lot of focus over the past few months has been given to the way in which advisers earn their income. There is going to be a significant push away from a commission model to a fee based model, but will this prove to be sustainable for advisers?
Roy Beck says that in the current environment, he still works on a commission based model. "However, as most of my income is based on a trail fee model, it is somewhat similar to a fees-based practice."
Steve van Rooyen agrees that a combination of both models is the solution. “The one model that does stand out is ongoing fees which I use to maintain and grow clients’ wealth going forward. In this way, I feel I add value to clients’ lives and always put their needs first.”
The adviser’s mouthpiece
Have you ever heard the advisers proverb of: you are only as good as the last piece of advice that you gave to a client? This is the cornerstone of the industry and points out the important role that clients play when talking about your business. In essence, a happy client can be your best marketing tool.
“Positive relationships with existing clients ensure referrals to prospective clients. New business is also based on referral from existing clients,” says Schoeman.
Joubert adds that the best marketing tool is clients. “I make it a point to see all my clients at least once a year for a formal review, I believing in my own abilities and continuing to develop as a professional. Referrals from my clients are the biggest source of new clients.”
Build for the future
Skills are one of the areas in the industry that needs a lot of work. Continuous development is a key ingredient of success, but there is also an important need to develop new skills and to bring them into the industry. What can successful advisers offer new industry participants when it comes to pearls of wisdom?
Joubert advises young professionals not to consider a career in this industry if they do not love working with and helping people. “Do not get into this industry if you don’t want to further educate yourself on a permanent basis. Do not get into this industry if you are not willing to sacrifice your time for your clients.”
Schoeman echoed these sentiments and adds that if young people can, they should study and get qualified. They then need to run their business as a professional from day one.
Editor’s Thoughts:
Perhaps the key to success lies in treating clients as business partners who you have to guide towards prosperity in the industry. Associations such as CoDA are important as they encourage business excellence and reward it. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.
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Added by Edsaid, 10 Feb 2016