Congrats to Andy Gluck for launching the “Financial Crisis Webinar Series,” featuring recognized pros presenting valuable insights and information in a real-time platform. I’ve found them all helpful, but the session on April 3, Compliance Issues Posed by LinkedIn, Blogging, and Social Networking Sites, was particularly germane to contemporary communications, as was Andy's last webinar on Twitter.

Financial advisors, of course, are bound by hard rules and regulations when it comes to talking about what they do, how they do it, and the results they get –and most of those rules were created before the Internet. As Brian Hamburger and Daniel Bernstein reminded us, compliance issues apply to new media, too. Anything we say, claim, or endorse online may live forever – and may be against regulations to boot. Using so-called “social networking sites” like LinkedIn and MySpace with the intention of building your professional financial services business can be very tricky territory, so watch your step.

But here’s a thought. When we consider the ash heap around us – the general chaos and loss of trust and faith in our financial industry – we see opportunity if we look for it. With so many “recognized leaders” gone, there is enormous potential for emerging leaders – with integrity, patience, intelligence, and grit – to step forward and introduce themselves, their character, and their viewpoints.

One new social media site, Twitter, is helping them do that in a rather unconventional way. The idea behind Twitter is to answer the question, “what are you doing?” in a very short message limited to 140-characters. That message, known as a “tweet,” is broadcast to your network of “followers.”

When I first heard about Twitter and its premise, my reaction was like that of my 4-year old grandson when he really doesn’t understand something – an incredulous, “Huh?”
I was both skeptical and intrigued. I thought the idea was stupid. Who cares what I’m doing in any given moment? And why would I care about what others are doing in any given moment? Plus who has the time to invest in learning about and effectively using yet another new communications technology?
But I was curious, too. So I signed up, thinking what the heck. I had to at least learn about Twitter with all the buzz about the vibrant “message microcosm” it enables.
Now, two months later, I get it.

In Twitter, it’s all about following and being followed. You create and participate in self-selected networks of people, all twittering away, keeping each other posted on their lives. I have 240 followers and I follow 240 people – which means I have a personal glimpse at a wide range of people’s day-to-day lives – and they have a peek at mine, too. Many celebrities and politicians are active tweeters. If that sounds strange to you, it did to me, too, especially the part about having “followers.” Who are these people? I know some of them, but since Twitter is a viral phenomenon, there are people following me that I haven’t had the pleasure of meeting, which I find fascinating. And following someone is fascinating, too.

For example, I follow NPR newsman Scott Simon because I admire his work. I found his tweet about how his daughters turn the cardboards from his shirts into art projects quite endearing. There’s something about “micro messages” like that that help me come to know much more about someone’s day-to-day character.

Which brings me back to the point. I’ve invested significant time and effort learning about Twitter. I post tweets twice a day, to express my worldview – not as a marketing tool for my business. And within the past month, I’ve gotten three new contracts and a slew of promising prospects – almost as a side effect. People got to know me first – and then wanted to know more about doing business.

Short-form technologies like Twitter may be the tools that will help restore eroded trust and build new connections because they force us into tightly focused communications (what are you doing?) that reveal so much more than you’d ever imagine 140-characters would allow.

Is Twitter just a faddish tech trend? What could Twitter do for you? What on earth would you tweet about?

If April 13ths Wall Street Journal Report: Seven Questions to Ask When Picking a Financial Advisor didn't get your attention, it should have. Author Shelly Banjo sets the context for the story with these startling statistics from Prince & Associations,Inc. a market-research firm:

• More than 75% of individuals with at least $1 million to invest intend to move money away from their financial advisers
• More than 50% intend to leave their advisers altogether

Does this surprise you? Recent research with Financial Advisors shows that most of you believe you are in little risk of losing clients. Big picture – that's a big disconnect. If you're not thinking about losing clients, you’re not thinking strategically. If you haven’t already lost a client or two, it’s probably just a matter of time.

If you want to keep clients and get new ones, you need to differentiate yourself from a pack that investors have grown quite wary of. Establishing a successful CAB is one way to do that.

I believe in it so much that I am offering a FREE 1/2 hour CAB consultation to any of you that are interested in establishing a Client Advisory Board.

Many Financial Advisors claim to be considering the idea of launching a CAB, but few have actually done the thinking and taken the steps to create one.

Another disconnect between FA’s and reality. It remains a puzzle to me.

So, if this is so patently powerful and obvious then why doesn't every FA have a CAB?

I, of course, believe that they should. In fact, I’ve seen such great results in the CAB approach that I’d even argue it should be a new industry standard, like an ISO or Six Sigma certification requirement. In my view, requiring every FA to establish a certified CAB Program would go a long way in creating a new collaborative model for the financial services industry of the future.

How do successful CABs hold so much power? Because they provide an intimate, recurring, facilitated forum for prospects and clients to engage with you in open, on-going, and substantial conversations. This is absolutely one of the best investments you can make in your own success – actively listen to your clients. When we really listen, we tap into a continuous feedback mechanism that generates trust, understanding, and loyalty.

When I say you can learn to use your clients to strategically grow your business, I mean it.

My work is revealing attention-getting results. Our clients have experienced incredible ROI on their expressed success metrics.

We’ve discovered that CAB members provide 50% more referrals than non-board members – and a referral is the very best sign of a loyal customer. Even if a client declines your CAB invitation, the act of approaching them to serve appears to generate more sales, too.

So what I’ve witnessed personally, time and again and in so many ways is a genuine win-win situation for our clients and theirs. We believe that our CAB Program is like giving the proverbial “keys to the kingdom” to Financial Advisers, opening the door to creating more value for and with clients at the strategic level, where it matters most.

If you’re one of those “considering” the idea of establishing a Client Advisory Board, I invite you to take it to the next level. Become an emerging leader! Logon to www.cabhq.com and click our Financial Advisors ad, to register for a FREE 1/2 hour consultation on a CAB for your practice:

In “The Gig Economy,” on January 12th’s Daily Beast , Tina Brown comments about the apparently growing number of well-educated people who make $75K a year (or more) without having “real” jobs. They earn a living working on “free-floating projects, consultancies, and part-time bits and pieces,” known as “gigs.” Many former high-fliers in once secure jobs now find themselves loose in the gig economy, creating a new “hustling class,” experienced professionals scrambling for consulting contracts, short- and long-term project work, and new sources of income.
It is a provocative article, and “The Gig Economy” went viral, of course. Within the next month, everybody was blogging or twittering about what Brown dubbed “gigonomics.” National Public Radio picked up the story, and there were responses and musings all over the web. On GenX Finance, a blog post queried, “Are you Part of the Gig Economy? If Not, You Might Want to Start Thinking About it Now.” The writer makes a case that GenXers should plan for job uncertainty and design a way to manage on gigs alone, trending from “fixed” to “freelance” career paths. This shift could bring with it a sea change, from traditional planning models to brand new ones that are still evolving and complex to manage.
Sound financial planning is supported by some degree of economic certainty – for example, a predictable income from a steady job. But as steady jobs evaporate, there is potential impact on your practice and the lives of clients who might be shifting course. How would you counsel a client who is never quite sure of annual income or sources? How would you allocate investments for a client who comes up short and may need quick liquidity? As our friends at GenX Finance warn, you might want to start thinking about it now.
Creating a new financial services industry from the ashes around us requires a straight-ahead look at what we’ve created and commonsense reality checking. We’re not going back to “the way it was” any time soon, if ever. “Landing a gig” instead of “finding a job” may be the way many of us make it for the next little while.
So we need to get savvy and comfortable – fast – navigating without a map. Those adept at playing in the gig economy (Brown’s “hustler class”) know that there’s a certain discipline to the game and inestimable lessons to learn from playing it. How do you establish yourself and your personal brand in this new paradigm for “career?” It all depends on your value (what do you add to the team?), reputation (what’s your street cred?), and connections (who do you know?). To thrive here, you must be a recognized contributor with an impressive track record and targeted networks – and a strong sales ability.
Think about it now, rather than later. What makes you “gig worthy” – and what’s your plan for getting them?
Want to hear more about the gig economy? Go to www.cabhq.com

Do the words trust and loyalty have any meaning today? Or have we become so cynical that we don’t even consider such concepts anymore?

The flood of complex schemes and fraudulent practices have destroyed the image and reputation of the financial services industry -- and demolished privileged livelihoods of those who used and lost vast fortunes of other people’s money.

So how are you doing? The litmus test: are clients staying or leaving? You’ll know how you measure up. Customers with no sense of loyalty will drop you. Customers who trust you will stick around and even help grow your business through referrals. That’s loyalty in action. Trust and loyalty are two sides of the same coin – the kind you have to work to earn.

We want to trust the people we put in charge of things (like our portfolios). But we need a reason to do that. Trust is not something we bestow in an instant or on a whim. It’s usually earned over time – in hours of candid conversation, considering important issues together. When we see consistency in behavior and attitude, we come to trust one another.

Trust motivates loyalty. When we trust someone, we’re naturally inspired to stand by them through good times and bad, sourced by mutually satisfying relationships and outcomes. Loyalty involves respect, care, and commitment.

Is the trust/loyalty coin at work in your practice? I can report from what I see facilitating financial services Customer Advisory Boards that sponsoring advisors have not lost any clients. In fact, I observe the opposite – a strengthening sense of loyalty to sponsors from CAB members.

They understand and appreciate that they have a voice and direct communication with their advisor, on a regular basis. The CAB provides the venue for a listening ear – and clients know through experience that what they say is valued. This is loyalty in action – the kind that drives client retention.

Our friends at Harris Interactive will present the 16th Annual Harris Interactive Loyalty Conference on May 6 – 8 at the Silverado Resort in Napa, CA.

This is not an extravagant gathering. It’s small (about 75 participants) and low-key, but provocative and informative, with case study presentations, workshops, and illuminating panels with loyalty thought leaders. Keynote speaker, acclaimed author and loyalty expert Jill Griffin, will inspire us to sharpen our vision about the role that loyalty plays in improving client experience and increasing ROI.

Because I’m facilitating two panels, I can offer a significant discount to my clients and readers of this blog. You can attend for just $595 – a $600 savings off the full conference rate. Register here for this special value:

http://www.harrisinteractive.com/loyaltyseminar/LOY5609VIP.asp

I look forward to seeing you there.

Have questions about establishing a CAB? My company, CABHQ, offers a free 30-minute phone consultation with me. Call me at 585-264-2000 to discuss the best CAB invitation “template” for you and your clients.

As markets have tumbled amid increasing claims, counterclaims, and outright fraud, it’s been easy to keep focused on the loss of money – dollars, profits, portfolios, bank accounts, mortgages, IRAs, savings. Wherever there’s money, a lot of it – a staggering amount -- has been lost lately, in reality, or on paper.

But there’s another loss accumulating that we’re just starting to acknowledge.  As a quote from Thomas L. Friedman, a columnist for The New York Times, states:

“We’re going to have to get used to a loss of trust. All those rock-solid people and institutions that we trusted with our money, our pensions and our kids’ piggybank savings — like Citigroup, Merrill Lynch, Bank of America — do not seem trustworthy anymore. Never before in my adult life have I looked around at every bank in my town and said, “I’m not sure I wouldn’t prefer to put my paycheck in a mattress.”

That’s a sobering observation from a respected source. We haven’t begun to assess the damage, the fall-out, the new geography of an entirely and eternally morphed financial services landscape. Who’s a winner here?  How do you know whom to trust? Based on what? Are you trustworthy? While you might be reeling from the losses of plunging portfolios, will the erosion of trust haunt you more than financial losses?

Recent reports suggest that 95.6 % of Financial Advisers surveyed believe they’re not in danger of losing clients. To you, I say congratulations on doing such a superb job! You must be so relieved!

But wait a minute.  Another survey revealed that 66% of respondents – people just like your clients -- reported they were disenchanted with their current FA (that could be you!) and were actively searching for someone new.  That’s quite a disconnect from those 95.6% of Financial Advisors who think they’re somehow “safe” from losing clients. That’s a big gap.

Glib rationales that “everybody’s in the same boat” can’t be used as an excuse to shrug off the need to examine our own intentions and trustworthiness. Rebuilding lost trust – just like rebuilding lost fortunes – takes time, effort and intention, and CABs can be a powerful tool in the process.

Thoughts?

Have questions about establishing a CAB? My company, CABHQ, offers a free 30-minute phone consultation with me. Call me at 585-264-2000 to discuss the best way to create a CAB for you and your clients.

In response to numerous requests I get for “invitation templates” to recruit CAB members, I’m offering this – there is no template. Your presentation to prospective CAB members is selling at the highest level. It will reflect you, your values, and your personal style. (But there’s a tip and great offer at the end, so keep reading).

Think about it from a personal perspective. How would you want to be recruited for an opportunity like this?  Via letter or email?  Phone call? Or a personal introduction and invitation over breakfast or lunch? My preference is the personal, the one-to-one. But if that’s not possible, a personal phone call is OK, too. A beautifully crafted letter of invitation might be impressive, but I don’t consider email an appropriate invitation vehicle – too routine and impersonal.

Whatever the method, get your story right and the details straight. Your clients will listen to a clear and rational appeal, so make it quick and to the point:

Why you’re hosting a CAB:
• To connect leaders
• To learn more about needs and experiences
• To solve problems
• To gain insight

Why you want them:
• Your viewpoints are important to me
• You have a unique perspective that I value
• I appreciate your experience

What’s in it for them?
• New learning with other leaders
• Facilitated discussion of business issues and solutions
• Sharing ideas – serving as a sounding board
• They set the agenda

What it is:
• 3 professionally facilitated working dinner sessions (annually)

What’s Involved:
• Meeting attendance (some travel may be required)
• Online meetings and conference calls (optional participation)

Now here’s a tip. Make your initial invitation completely free of long-term commitment. Make it easy to say yes. Extend the invitation for only the first organizational session. There, they’ll have the opportunity to meet potential participants and get a sense of working with the group. This should not be a hard sell.

And now here’s the offer. Have questions about establishing a CAB? My company, CABHQ, offers a free 30-minute phone consultation with me. Call me at 585-264-2000 to discuss the best CAB invitation “template” for you and your clients.
 

The concept of the customer advisory board has taken on new significance in the growing world of online connections and social media – where the end-user is now in control of the message. Along with the recognition that transparency and authenticity are important keys to success in today’s business environment, an increased engagement between customers and business leaders, using CABs, is almost a must, today. We’ll talk more about social media and the concepts of transparency and authenticity in future blog posts, but for today, let’s look at why customer advisory boards work – and work well – in the financial services space.

A few short years ago, I was actively traveling around the U.S. facilitating a number of customer advisory boards for companies like PAETEC. These CABs created a high level of engagement with open, honest conversation. One day, with my financial advisor, let’s call him Ed, we discussed the value of interactive conversations with clients and we discovered that CABs would work for the financial services industry, too!

After some thought – I realized it was a natural evolution – bringing financial services clients together with their financial advisor, to talk about and explore what was working and what wasn’t. So, we put one together. And the reaction was jaw-dropping!

It Isn’t About the Money
Here’s what happened – the “clients” at that time came to the meeting Ed and I organized with a completely different agenda than we brought with us. Our agenda was to discuss their financial future. We thought that was the topic of the day; how their money was doing, what was in store in their financial future. We thought they’d want to talk about how to move successfully into retirement, and what they should be doing today, to help their legacy last longer.

To our amazement, the clients didn’t want to talk about their money. Not that day. They wanted to talk about what was happening at the firm. The firm, at that time, was in transition and these clients wanted reassurance about the change. The conversation quickly moved from a business focus to a personal one. The talk focused on how stable the future of the firm was, they wondered how the announcement they’d received in a curt, to the point letter was going to affect them, and – most importantly – how the change was going to affect their relationship with their financial advisor.

“How is this going to affect the level of service I’m used to?” they asked. “What about our relationship?” they practically jabbed their fingers at Ed’s chest. “Am I going to be hassled with pitches for products I don’t want?” they asked.

The Big Aha! Moment
These were people talking about life – their life, their livelihood, their business and personal relationships, and how all of that fit together. It was, by far, the highest level of engagement I’d ever experienced. Out of the excitement of getting personal that day, of talking openly and honestly about more than money and stocks and bonds, I had an aha! moment that I later on pinned down to these important points, relevant to CABs and financial services:

• Clients want the engagement – they want the conversation, they want to be people first and clients second. And, the conversation has to be two-way. To date, it had been largely one-way.
• CABs build better referrals. CABs turn clients into a successful referral source. Clients who attend CABs leave with a sense of accomplishment. They are more likely to refer others, after participating in this kind of open, honest forum
• CABs are excellent resources for creating how-to’s and things to think about. Each member brings a unique set of ideas and viewpoints that enable the advisor to actively address issues he or she might never have been aware of. It’s a true win-win, all the way around.

Since that momentous day, I’ve conducted dozens of CABs in this space. It’s one of my favorite things to do because the clients in financial services always bring a few surprises to the table. They never cease to surprise me with their passion for life and for asking the why and how questions.

In future writings on this blog, and on my CABHQ site, I will discuss those why and how questions. I’ll demonstrate why CABs are important, and we’ll explore the objectives of having a Customer Advisory Board. We talk about the hurdles and the obstacles. I’ll share some of my methods for success, and I’ll share thoughts on how to keep your CAB fine-tuned.

Stay in touch!
________________________________________________________________________