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:

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.

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.