Paying a premium with a smile
A lot of noise has been made lately regarding the changes that the financial services industry is going through in order to make clients the centre of the industry’s universe. While there is no doubt that the client has always been at the centre of every activity conducted within the industry, the common accusation of its all about the product is not very far-fetched in some cases.
The industry is going through a mindshift change where the main focus will be on the client experience. At the recent Amity Wealth Conference, Amity Wealth Director Anton Swanepoel said that clients are going to have an experience with the financial services industry anyway, so it is up to role players to make sure it is a positive one.
Talking points
Amity Wealth CEO, Marius van der Merwe, discussed this even further by explaining that people do not talk about products, they talk about experiences.
“We are operating within an experience driven industry. We need to create experiences that are valuable and memorable to the clients that we serve. The question we need to ask is: what experiences are we providing clients with?” asked Van Der Merwe.
This is an important point. The biggest marketing tool advisers can rely on often becomes the clients they serve. When you offer a good experience, you will receive an estimated eight good reviews. But if you offer a bad service, you can expect up to 20 bad reviews. With social media being such a powerful avenue of communication, can you afford this?
Baseline studies
Advisers are therefore encouraged to create a baseline study to rate their service. Van Der Merwe points out that a good measuring stick is asking how many referrals they are getting from clients and expressing this as a percentage.
“Often, the client experience can be seen as an intangible service that we are supposed to be providing. Many people ask: how do you measure an experience? How do you quantify it? The client experience is the culmination of all interactions, direct or indirect, that a client has with your business and service. This is both physical, in the form of a product, and emotional, in the service levels you offer,” said Van Der Merwe.
What is the importance of offering a good emotional experience to your clients? Van Der Merwe pointed out international studies shows that up to 95% of all decisions made are based on emotions.
Ticket into the game
This is not to say that your product (the service that you, the adviser, offer clients) is not important, it is the entry ticket into the game.
The product is important because it is the one variable that advisers can have control over. This is where you can exceed or fall short of clients expectations. According to Van Der Merwe, you need to know what your clients expectations are and then work towards exceeding them. You need to educate your client on your offering and prove that you are the expert in the field that they are looking for.
In an effort to provide a tangible example of this, Van Der Merwe referred to the creation and rise of Starbucks Coffee. He pointed out that the company has created a community where clients actively want to go.
“The people at Starbucks speak a special language, they create a friendly environment by setting up their furniture with a specific flow in mind. Therefore, if you are at one table and want to talk to a person at another table, you merely have to move your chair to do so. The most starling thing about Starbucks is that they charge a premium for their service and yet still achieve revenue growth topping 20% a year. Last year, 75% of all coffee sales from coffee shops in the US were Starbucks sales. People will pay a premium for a good customer experience,” said Van Der Merwe.
Clients buy into you
According to Marno Boshoff, Executive Coach and Culture Change agent at Dream-Strat Consulting, at the end of the day, all insurers offer the same basic set of products. He feels that clients don’t buy into products as much as they buy into you and your offering.
“Clients are going into the financial services industry with some level of confusion. You as an adviser cannot approach them with negativity. It is up to you to approach them with solutions. You are the product that clients are investing in,” said Boshoff.
Editor’s Thoughts:
Customer service has always been at the top of adviser’s minds; but we need to focus on the experience that we offer clients. Can we say clients are coming to us for an experience that exceeds those offered by a product? Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts jonathan@fanews.co.za.
