Elixir Consulting MD, Sue Viskovic, is asking advisers to reconsider the nature of their client relationship models in order to maximise the benefits of embracing trust-based client relationships.
At a pre-conference workshop in the lead up to the FPA 2009 National Conference last week, Mrs Viskovic took advisers through a process that identifies the differences between outmoded ‘old school’ selling practices and what she believes is the way forward for advisers wanting to adapt their ’soft skills’ in a way that will connect with clients and prospective clients in a post GFC environment.
Central to Ms Viskovic’s approach is the need for advisers to base their practices around trust-based relationships.
On the surface, most advisers would contend that trust between adviser and client is already at the foundation of how they operate, but Ms Viskovic says she regularly consults to advisers who possess all the product knowledge and technical expertise they will ever need, but are not able to optimise the value of their knowledge because they are not able to create an environment of trust with their clients.
Ms Viskovic told riskinfo that what she sees when consulting to advice practices is advisers who create excellent quality advice, but as many of them have undertaken little to no communication training, they are unable to communicate this advice and ‘sell’ it to the client - which means they miss out on getting the business and the client potentially misses out on a great opportunity to improve their financial future..
‘Trust’ is the overwhelmingly dominant characteristic that clients look for when choosing a financial planner
Supporting her argument for trust-based adviser/client relationships, Ms Viskovic refers to a study from Credit Suisse, in which ‘Trust’ is the overwhelmingly dominant characteristic that clients look for when choosing a financial planner.
Based on her own experiences as a financial planner and on her consulting work with hundreds of advisers, Ms Viskovic’s message is that trust-based relationships will initially provide advisers with the information they need to prepare great advice and will eventually lead to the client:
- Implementing the adviser’s strategy recommendations
- Seeing an improvement in their financial position
- Remaining a long term, and therefore more profitable client of the firm
- Sleeping better at night
One of the pre-requisite values Ms Viskovic stresses is that the adviser must always put the client’s needs ahead of their own. While most advisers will already say this is presently the case, this issue is central to the future requirements for all advisers in light of the Ripoll Inquiry recommendations handed down this week, which include a future legislated fiduciary duty for financial advisers to place their clients’ interests ahead of their own.
Advisers wanting more information can visit the Elixir Consulting website at www.elixirconsulting.com.au.
