A tutorial on creating a ‘raving’ marketing plan

Successful marketing programs don’t exist in a vacuum. This hit home when a financial adviser recently asked if I had a program to improve his client communications. When I asked what he wanted to accomplish, he said that his goal was to create “raving fans,” a reference to the book of that title by Ken Blanchard and Sheldon Bowles (William Morrow, 1993).

Successful marketing programs don’t exist in a vacuum.
This hit home when a financial adviser recently asked if I had a program to improve his client communications. When I asked what he wanted to accomplish, he said that his goal was to create “raving fans,” a reference to the book of that title by Ken Blanchard and Sheldon Bowles (William Morrow, 1993).
Ultimately, ultrasupportive clients result from firms that are committed to service. Customer communications is part of service, of course, but improving communications makes sense only once you have made a commitment to serve your clients in other ways, and once you understand who they are and what they want.
Bill Perkins, a trustee of Loring Wolcott & Coolidge Office, a Boston-based professional family office, understands both his clients and service.
“We view our clients as the owners of their own business,” he said.
The firm has about $5 billion under management.
“We focus on high-quality growth stocks and emphasize tax efficiency,” Mr. Perkins said. About 20% of assets are invested in socially conscious portfolios.
Although Mr. Perkins calls his clients “middle market,” most accounts fall just below the $5 million to $10 million level, he said.
“We can handle the clients’ being unhappy with performance from time to time but not with the service. Getting back to a client promptly is something we control,” Mr. Perkins said.
“Our focus is on retention, because when you are at a steady state, you can control expenses, staffing is stable, and we can really deliver on customer service,” he said.
One of the keys to excellent customer service is matching the goals and style of the firm with that of prospective clients. This is an area where even experienced firms can run into trouble.
“In 2000, we started to get
performance-seeking accounts, when our large-cap style was in favor,” Mr. Perkins said. “But when the performance declined, they left.”
Mr. Perkins said that his firm has felt pressure from some clients as other investment areas, such as energy and small cap, have heated up. But aside from adding more international diversification to its offering, the firm has stayed with its core competencies.
Although it stays focused on its business, Loring Wolcott recognizes that client needs change. As a result, it has added services over the years such as financial planning and bill paying.
Although the firm’s clients range in age from 30 to 90, the hardest to serve are those in the middle, the 60-year-olds.
“When there is a change in life, there is a lot of hyper focus on creating a plan, of figuring out what to do next,” Mr. Perkins said.
How can an adviser emulate Loring Wolcott’s emphasis on service?
The most obvious first step is to state — in a company vision statement, for example — that client interests come first.
Second, the adviser needs a thorough understanding of all clients and their value. This means not just knowledge of the level of assets under management but also the return on assets, possible future assets, potential as a referral source, as well as their attitudes and needs.
The latter two attributes are important, because the adviser will want to focus research on client segments that are most important to current and future success, and those that best match the style of the firm.
Third, the adviser must find out how his clients feel about their client experience, and what they would like to see enhanced or changed. If possible, the adviser should use a third party to elicit client views; most clients simply aren’t candid unless they are speaking to an outsider.
Outside help need not be costly. If an adviser provides the materials, hiring an individual or a small research firm to mail out a survey and receive the returns can be inexpensive.
There also are online survey companies such as SurveyMonkey and Zoomerang that are very affordable. One-on-one interviews conducted by a researcher are a more costly, but informative, option.
Focus groups probably are the most expensive choice, and they can be useful when brainstorming or introducing a product.
Fourth, with the resulting information, the adviser can build an effective communications plan and tailor their client contacts, events, office support and portfolio reviews to create a superior customer experience. Marketing programs certainly can help build an adviser’s “fan” base, but before fans start to rave, it takes commitment to client service and to understanding their needs.
Libby Dubick is president of Dubick & Associates Ltd., a New York firm that helps advisers and financial services firms identify and develop distribution and marketing opportunities. She may be reached at [email protected].