We are a society of gift givers. “Never arrive empty handed,” applies to business as much as it applies to social settings. Recently I dropped off some dry cleaning, and asked the impossible: Could I get it in an hour? Usually – in fact, almost ALWAYS – the answer would be “NO!” One-hour dry cleaning has gone the way of the full-service gas station. However, this time the answer was YES, because the owner is a customer service fanatic. In addition, I drop off cookies once a month. Gifts make a difference.

However, a gift protocol exists in business that says gifts should not be bribes. In addition, many industries have limits – or outright bans – on gifts to prospects and clients. Always be aware of firm and industry rules concerning gifts. Make gifts appropriate and compliant. Nothing is more embarrassing than having to unwind a gift that exceeds gift limits.

SOLUTIONS: First of all, know the rules. Second, know your client. A gift doesn’t have to be huge or expensive. A well thought out gift for a client based upon their interests or passions makes for a better relationship than something that you give to everybody.

FOR ADVISORS: Don’t do business with a vendor strictly because they always arrive with gifts in hand. Select products and services based upon their benefits to your clients and your business. Beware the product-pusher who wants you to business strictly on the basis of gifts or entertainment, especially when no previous relationship exists. In addition, make YOUR gifts to clients appropriate and compliant as well. An advisor I know makes it a point to select PERSONAL gifts for clients. One of his assistants does the shopping once he builds the list.

Gifts are a sign of friendship and relationship. Use them, and use them well.

Good Selling!

This is the second post in a series of ten discussing major faux pas’ made by wholesalers, ideas on how to correct them, and suggestions for advisors on how to deal with wholesalers who make these mistakes.

Mistake #2: Telling, Not Selling

Presenting is an essential skill for wholesalers. You demonstrate your product in such a way so the advisor knows what it does, how it works, where it fits, and how to sell it. And to say nothing about group presentations! Master wholesalers dominate when it comes to individual and group presentations.

However, hear the words of Jaime Calva, a selling sage with 60 years under his still productive belt:

“Telling is not selling.”

Dialogue happens when two or more people converse. Like the Tango, it takes two to dialogue, and in order for a sale to be made, both parties must communicate. While this involves feedback, it means more than the typical sales feedback loops. Selling involves interviewing your prospect. Selling means knowing your prospect, and in order to know someone you must ask questions. Asking questions does NOT mean interrogation with “Fact-Finding” questions, but professional rapport building with “Foundation Building” Questions, such as:

• “Tell me about your family.”
• “How did you get into the business?”
• “If you were to bring me on as new vendor relationship, what has to happen in the next twelve months in order for you to consider your decision a success?”“
• In looking at your practice / business today, what do you consider your biggest challenges?”
• “What is the biggest factor in your success?

SOLUTIONS: Develop a standard interview structure, and be flexible. Build a list of 20 Foundational Questions as a goal for each advisor relationship. Ask these questions over a couple of meetings to find the advisors passions, drivers, and motivations. Don’t forget to build effective feedback loops into your presentations, as well.

FOR ADVISORS: You should do the same with your clients. Ask better questions. And, beware the wholesaler who leads with, “What part of your sales is made up of [PRODUCT]?” Chances are he/she is looking out for himself/herself alone. For your part, get to know your wholesalers better with every meeting. Learn about their internal drivers, and what they need and want in a professional relationship. Expect wholesalers to truly be your partners, and be a partner with them as well.

Good selling!

Wholesaler utilization continues to be a never-ending topic of discussion. Professional advisors seek new ways to partner with quality wholesalers and wholesaling companies, and the wholesalers also look for ways to differentiate themselves. There are a number of successful strategies for wholesaler utilization, including “5/60 Events (TM).”

A wholesaler comes to you with an idea you feel merits attention by a number of your clients. You have decisions to make. Do you:

• Present the idea to one client at a time at reviews?
• Conduct a large seminar?
• Do a mailing?

Consider a “5/60 Event.” Contacting clients one by one is a long process, and labor intensive. Seminars can be expensive and are also labor intensive. All of us know the challenges with large mailings, and quality advisors often prefer a more personal approach. A 5/60 Event involves inviting five, (yes, only five) clients/prospects to a luncheon, breakfast, or coffee to hear an idea of interest. The time commitment is 60 minutes, and the small number of attendees allows for prompt, professional follow up. A 5/60 Event is economical, efficient, and effective. You and your staff avoid the challenges of complex meeting planning, and the small number of invitees provides a wonderful forum for idea sharing and relationship development. The wholesaler presents and participates in the cost of the event. Simple!

How many wholesalers call upon you with quality ideas? What if you did monthly 5/60 Events? What if you opened accounts with just a third of those who attend? What would that do for your business? Consider building 5/60 Events into your Q4 Marketing Plan.

Good selling!

Only two things matter when you seek to improve production. You have your choice of one or both of two strategies:

A. Increase Sales Activity

B. Work with Larger Cases and Larger Clients

If you cannot meet with more clients than you do at the present time, examine your activities. Look for tasks you do that could be handed to an assistant.[1] Your role is simple; meet with clients, design strategy, and implement solutions. Marketing and selling[2] to different groups requires different strategies and tactics, and as a group, high net worth individuals[3] require different strategies and tactics.

MARKETING

Top-performing professional service providers possess many common denominators, including a focus on marketing to High Net Worth (HWN) people, as well as a marketing and follow-up strategy that includes the following five steps for growing a practice and increasing the bottom line:

1. Provide a Personal Touch In Your Marketing Strategy – To develop relationships, you must know your clients. The more personal your communication with clients, prospects and centers of influence, the more effective your message will be.  The secret in your personal touch is to know your clients and focus on the value and benefits you bring to relationships.

2. Communicate Your Benefit-Based Defining Statement (BDS) – Successful professional service providers understand how important it is to differentiate themselves from the competition. Your marketing message needs to communicate your unique value proposition in the form of a BDS, which is short, repeatable and focused upon the needs of the client, not what you do. Communicate your BDS through traditional and online strategies. Traditional strategies should include postcards, letters, cards, and tasteful, appropriate gifts.[4] Your online strategies will include e-mails, social media and article marketing. Make sure that your marketing message is consistent, stands out and resonates with your target audience.

3. Know Your Market – The core of your marketing strategy needs to focus upon a niche market or markets. Once you identify the clients you want to serve, you can then find out everything you need to know to dominate that market. By working with a group of people with similar needs, you can learn exactly what they see as challenges and opportunities, which allows you to provide a better service experience. When your affluent clients experience this level of care, they provide high quality referrals.

4. Networking – One of the easiest methods for receiving highly qualified referrals and introductions from other professionals in the same niche is to network with the purpose of building professional relationships, which provide opportunities for sharing referrals. Networking, professional, and community events provide tremendous opportunities for business expansion. In addition, using social media marketing strategies designed to identify potential mutually beneficial relationships results in an amazing amount of new business.

5. Maintain Consistency In Your Client Contact Strategy – Top advisors touch their affluent clients between 18 and 36 times per year. Depending on your clients needs, you may need to touch them even more or less. To achieve this goal, it’s essential that you include an automated follow-up process in your marketing plan. Use technology to automate and drive your marketing activities. Task an assistant (preferably a dedicated assistant) with managing your marketing program. Meet at least semi-monthly with this assistant to review results and schedule activities.

SELLING

Marketing to HWN’s differs from broad based marketing. The same can be said for presenting and selling to these people.

1. Approach – Introductions and referrals work far better than direct calls and letters. Letters can be effective, but avoid form letters at all costs. If you choose to use letters make certain the letter is personalized. In addition, use introductions for mutual acquaintances whenever possible. For maximum impact, send the letter by overnight or priority mail.

Often HNW’s do not open their mail, and you must overcome secretarial screening.  Often a personal card can be effective. There tends to be widespread warm response to personalized, signed, stamped letters. Some HNW’s are receptive to highly targeted, well thought-out brochures, but they must be brief, direct, to the point. Given their HNW status, these individuals receive many solicitations every week from the typical providers who try to sound like an old friend. The main point is to be memorable.

2. Expertise – Many HWN’s are skeptical about the ability of others to make better decisions than they do. Financial advisors must demonstrate superior knowledge and experience. Prospects in their 30’s and 40’s are more likely to defer to recognized authorities; but prospects in their 50’s are more likely to see themselves as the best judge of an offering or solution. It is not necessary for an advisor to be an expert in all areas of service to the client. It is necessary for the advisor to be able to bring in specialized expertise seamlessly when it is needed. Regardless of your expertise, you must demonstrate confidence in your recommendations, with a solid plan and backup information if the HWN wants more detail or documentation.

3. Informed Decision Making – Few affluent individuals want to turn major decisions over to another party. Many prefer to be educated as to the process and the choices in a time-efficient manner, and to stay in control of the decision-making process.

4. Access to a Wide Variety of Solutions – Many affluent individuals want access to the widest possible variety of products and product providers, rather than proprietary products. The intelligent firm may offer its own funds or products, but will also have the flexibility to go into the market and access any service or product the client may need and desire.

5. Client Focused, Holistic Orientation – HNW’s typically have complex personal and financial profiles. Most advisors focus on their own functional area of expertise. The advisor who integrates and coordinates different aspects of the client’s situation and sees to the complete and accurate implementation of recommendations, with ease of implementation for the HNW, provides a valuable and rare service.

6. Relationships with Advisor – HNW’s value a strong bond of trust with their advisors, and transition to a new relationship can be problematic. HWN’s expect advisors to act as advocates. They also expect new, creative, customized ideas or opportunities about new products or services that may be of benefit to them. For the most part, HNW’s are not concerned about the age and gender of the advisor, but rather their competence, communication skills, and ability to identify solutions. In addition, premium service delivery and kept promises create loyalty and keep business.

High net worth client development calls for a particular focus and attention to detail to client contact and needs, and an attentive, personalized relationship. There is no understating the importance of knowing your clients at a deep level, and tailoring your marketing, ideas, and recommendations to meet their unique needs. When these principles and strategies are applied to a professional services practice, business grows exponentially.

[2] Many professionals feel they don’t “sell.” However, when business is done a sale takes place, even if the person only buys you, and ultimately that is the sale that matters

[3] This applies to individuals, couples, families, and businesses. ALL interactions are ultimately individual – and personal – interactions.

[4] Make certain to know the compliance guidelines for gifts in your profession.

The banking industry has caught its share of flack for the industry’s part in what has come to be known as “The Great Recession.” Not without cause, mind you, but virtually nobody saw what was coming. With the exception of a handful of people such as Steve Eisman, Michael Burry, and Greg Lippmann (read Michael Lewis’ book, The Big Short: Inside the Doomsday Machine. New York: W.W. Norton & Co.) bankers not only did not see but were hurt by the financial collapse of 2008 as much as any sector. In fact, in 2004 the FDIC said, “Within the banking industry, we conclude that each of the three main sectors—community banks, regional and other midsize banks, and the largest banking organizations—has favorable prospects for the years immediately ahead, even though the number of institutions is likely to decline further. What could materially diminish these relatively favorable prospects?”*

The question is simple; where do bankers go from here? With a return to conventional lending standards, and the inability of the majority of consumers failure to qualify for those standards, bankers face a double-edged sword. With the flight to security of depositors and the inability to lend those funds to qualified buyers, banks find themselves in a unique paradigm.

The immediate challenge is to stay active in the communities in which these banks and bankers work and live. Good banking business is still out there, bu the days of sitting in the bank waiting for business to come in the door are over. The flight to quality in loan underwriting notwithstanding, bankers must compete and win the battle for quality relationships like never before. Forget marketing; does your bank have a CRO (Chief Relationship Officer) tasked with developing a strategic relationship development program for its officers and directors? It is no enough to join organizations and be visible.  Banks must aggressively and strategically develop a plan to own the key relationships in their marketplace.

*The Future of Banking In America; George Hanc; Former Associate Director, Division of Insurance and Research, Federal Deposit Insurance Corporation.

Traditional client appreciation events often are inexpensive banquets at best and poorly masqueraded sales seminars at worst. Either one can serve a useful business purpose, but consider hosting a slightly different client event – a event based upon “purpose.”

Recently I visited with a financial advisor in the mid-south who takes a novel approach to client events. This advisor sponsored a golf tournament; nothing unique about that. What made it unique was it was a charity event tied to a major national charity – The V Foundation. From the Foundation website: “It has been just 17 years since The V Foundation for Cancer Research was founded by ESPN and Jim Valvano. And what significant work has been accomplished during that time! Since 1993, The V Foundation has raised more than $90 million and awarded cancer research grants in 38 states and the District of Columbia. Researchers have developed their laboratories and taken their science from the labs to the clinics with the help of funds raised by The V Foundation.”

The event was replete with unique gifts from national sports celebrities, creative hole sponsorships, and appearances by regional sport icons. Clients loved it, and the event drew a huge number of affluent prospects. In addition, considerable publicity mentioning the advisor’s name offered significant favorable exposure.

This advisor used this event for a good purpose. A wonderful charity received tens of thousands of dollars, and the advisor is viewed as someone who puts something back into his community and society. Consider this type of client event next time you decide to host another boring chicken dinner.

LinkedIn® provides professional services marketing and sales people with a wonderful tool for building and expanding relationships and growing business. Consider the following tips for maximizing the use – and profitability – of one the top business building tools on the Internet.

This daily game plan has 8 steps and takes 15 – 20 minutes.

1. Comment on Comments – Show your connections you are paying attention.
2. Make recommendations – If you have not made a recommendation for a connection, DO SO if at all possible. Please make sincere recommendations; remember, your name is on the line. If you cannot recommend someone in good faith, don’t do it.
3. Make your profile publicly available – While you can set the information which is publicly available to non-members/contacts, be careful with blocking too much information as this will also be unavailable to the search engines. As a minimum, consider providing enough information for the search engines to index your profile and cache the external links you have listed! In terms of optimizing your profile, the main goals are normally to rank for your own name, company name and possibly industry keywords related to this.
4. Comment on Profile Updates – Congratulate others on promotions and awards, inquire about other changes, and always offer assistance.
5. Check your Inbox – Respond to requests and messages in a timely manner.
6. Look in the “People You May Know Section” – Find new connections and leads.
7. Check Your Groups – Look for new discussions, answer questions, and look for other items of interest. Ask questions to gather information and open new relationships.
8. Use LinkedIn® Answers – This can help to build up your reputation within a field. For SEO it also builds the number of internal links pointing to your profile from within LinkedIn, therefore helping to strengthen your profile in the search engines!

A word of warning: LinkedIn® is a tool, not a religion. Relationships are still made person-to-person, not digitally. You can receive an introduction or introduce yourself on the web, but true relationship building comes from personal interaction. LinkedIn® and other social media sites help maintain and grow relationships. In a busy world, that is truly priceless!

As a professional speaker, marketing consultant, business coach, and high level-sales trainer, I meet with a wide variety of salespeople and consultative advisors. This week one of my engagements was to the mutual clients of a retirement plan distributor and a third-party retirement plan administrator, or TPA. One of the points that was discussed of the flaw of SBS© or “Selling By Spreadsheet©.

Too many so-called advisors feel they are providing value by selling cheapest as best.  Advising is really telling a client what is the best solution to their problem. Sometimes price comes into play, but if you are selling a service, usually the main selling point is the quality of service, not price. When you sell price your biggest risk is someone else can do it even cheaper, and if you look hard you can always find it cheaper!

A recent commercial by Office Depot says it well. The commercial depicts a barber shop best by a cheaper competitor, and how they address the challenge. When faced with a shop across the street offering $6 haircuts, they counter with a sign that says, “We Fix $6 Haircuts.”

So what’s your story? Build a defining statement that truly demonstrates your value as an advisor, and quit positioning yourself as the cheapest alternative. Position yourself as the best alternative.

Good selling!

To see the Office Depot Commercial, click HERE.

Financial services professionals constantly look for ways to stand out among their competitors. Consider the following idea this Valentine’s Day to reach out to your clients. Some of your best clients are widows and widowers. What do these people not get anymore? Flowers and candy on Valentine’s Day. Make an impact – and do something really nice – this Valentine’s Day. Send something to these clients and show them someone cares. Will you get business or referrals from this? Maybe or maybe not, but do it anyway; it’s the right thing to do.

Good selling!

Mayo Clinic is the largest integrated, not-for-profit group medical practice in the world. More than 3,300 physicians, scientists and researchers and 46,000 allied health staff work at Mayo Clinic, which has sites in Rochester, Minn., Jacksonville, Fla., and Scottsdale/Phoenix, Ariz. Collectively, the three locations treat more than half a million people each year.  In 2008, Mayo treated over 338,000 patients in 1.5 million outpatient visits. So how does one of the world’s preeminent medical groups get their patients?

In a presentation given by Lee Aass, Communications Manager at Mayo Clinic and social media guru, he shares some interesting data concerning patient acquisition.  Most people assume Mayo’s patients result exclusively from physician referrals, but 84% of Mayo’s patients are influenced to choose Mayo as a medical services provider as a result of  word-of-mouth advertising!

Sources of Information Influencing Preference for Mayo Clinic

Word of Mouth                  84%
Stories in the media          57%
MD Recommendation         44%
Advertising                       27%
Internet/Websites             26%
Mailings to Home              18%

The implications are huge for provider of professional services. Word-of mouth advertising offers a powerful, cost-effective means of attracting business. With social media tools like Facebook and LinkedIn, word-of-mouth offers tremendous potential. Consider these questions:

• What are your clients saying about you?
• How can you manage word-of-mouth messaging for your business?
• Can Word-of Mouth be a part of your business development strategy?

Like any marketing, you must be strategic when crafting your word-of-mouth marketing. Consider these five steps to grow your business:

1. People love to share memorable experiences – good and bad.  How do you create a memorable experience for your clients? Make a list of what you do for people that makes you memorable. If you wonder what your clients think, send them an email asking them why they choose to work with you.
2. Craft a defining statement of 25 words or less that is benefit-focused, conversational and repeatable. A defining statement is not an “Elevator Speech.” Elevator speeches are too long in today’s world. You don’t have 30 seconds to get people’s attention – they make a decision about whether or not to listen in six to eight seconds. If you lose them, good luck regaining their attention.  Use the defining statement with clients – frequently.
3. Train your team to use the defining statement in client conversations. This includes phone greetings, service calls, and routine client interaction.
4. Incorporate this defining statement into all of your collateral sales and marketing materials.
5. Utilize social media tools to help spread the word about you and your business. Many resources exist that make word-of-mouth advertising easy. Consider outsourcing your social media marketing to a team member or social media service vendor.

Make it easy for your clients to tell others about your services. It certainly works for Mayo Clinic!

Good selling!