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!
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