by Bruce Peters
12/18/2008 7:25:00 AM
Most of the time, our customers have the answers to our most perplexing challenges. All we need to do is learn how to listen for them.
In my work facilitating Customer Advisory Boards (CABs) for financial advisors, I witness and participate in many game-changing conversations, including valuable insights and innovative ideas contributed directly by customers. It’s amazing what can happen when we genuinely listen to what’s on their minds.
Now most of us claim, of course, that we talk to our customers frequently and listen carefully to what they say. But do we really listen to them – without the siren song of sales playing gently in the background? Listening neutrally, without an agenda, is a skill and an art.
An effective CAB facilitator listens for opportunities to focus collaborative “non-sales” conversations between financial advisors and their customers, an especially important skill right now. Advisors are stressed by market realties and shrinking commissions, and their customers are stunned and rapidly re-arranging priorities. No one was prepared – not even sophisticated market leaders – for what’s happening. Nobody saw it coming.
But some savvy financial advisors were at least ahead of the curve when it hit. By the time markets started tumbling in September, one of my clients, a financial advisor, had been working with his CAB for two years. The group of 12 smart, sophisticated investors met monthly, in facilitated ½ day sessions about collaborative business practices. They had come to know each other and respect different viewpoints. Together they shared huge market growth – and now they were sharing in the fall-out of its precipitous drop.
As we gathered for the start of the September CAB meeting, it was apparent that their host was experiencing market shock stress syndrome. He looked pale, anxious, and tired. There wasn’t much juice flowing. Just prior to the meeting, he confessed he felt uncertain and worried.
Immediately aware of an opportunity to support him, the group rolled up its collective sleeves to discuss how he could grow business in such extraordinary times. Because they’d built a relationship on helping each other through challenges, they listened carefully as he talked about the economic stress – and how he felt partially responsible for his customers’ losses. He was worried. What if his clients left? What would motivate them to change advisors? What do they want most right now?
Soon, this CAB had defined four specific success criteria for evaluating financial advisors:
1. Communications. Of utmost importance, they want their advisors to proactively communicate about ideas and strategies that address their particular risk tolerance. In other words, talk regularly with clients (preferably face-to-face) about opportunities and strategies – based on their specific profile, not some “one size fits all” philosophy.
They gave their host very high marks in the “communications” category, largely because of the CAB. He visibly started to relax – a little.
2. Tax planning. The Advisory Board was clear that they want and need the best help and advice on tax planning – especially now and considering the probably lean economic times ahead. They expressed the importance and implications of informed tax strategies, and they want a financial advisor who will advise them knowledgeably.
Again, my client got high marks, and several group members acknowledged the value of his counsel. The color started coming back into his face.
3. Managing retirement & Social Security. The group agreed that managing benefits – and the implications – is an important conversation for them. Take IRA funds or Social Security benefits now or later? His CAB gave him positive feedback about his focus on realistic and achievable retirement plans and suggested a few additional approaches for him to evaluate.
4. Personally prepared plans. They were adamant on one point – they want their financial advisors to grasp their situations at a “grounded and granular” level and propose tailored and customized plans just for them. Here the group offered a few innovative ideas about new service offerings.
By now, my client – ashen and troubled at the start of the meeting – was engaged and lively. He thanked the group for being willing to listen and contribute their support and insight. And he acknowledged the power of this group who had worked together for more than two years to build trust, a group that knew the value of truth, and how to tell and face it– even when it was hard to do.
The “value of relationships,” is an acknowledged business principle. Real relationships take commitment and work and time to develop. But as my client discovered that afternoon, the pay-off was well worth the months and years he’s invested in his CAB, as his clients came to the rescue.
Just think – if you establish a strong CAB now and develop insights, products and services based on what you learn from them, you’ll be well positioned for the upswing that’s sure to come.
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