Advisers Differ on Meaning of ‘Adding Value’

The initial results from our latest poll appear to indicate some uncertainty amongst advisers about what it means to deliver ‘value’ to their clients in 2013 and beyond.

As we go to print, 59% of our poll respondents agree with the notion that clients will pay advisers for their insights in future, rather than for the information they provide.  However, 40% of advisers either disagree (22%), or remain unsure about the answer to this question (18%).

The results so far do not indicate a resounding or one-sided outcome.  The 40% who disagree or are unsure represent a significant proportion of the adviser community.

The argument that says delivering insight will be the basis of adding value to clients in future is based on AMP Chief Customer Officer, Paul Sainsbury’s contention that the ‘old model’ of providing value through delivering information has become out-dated because of the impact of today’s technology on the consumer (see: Insight, Not Information Key to Future of Advice).

One possible explanation for the 40% who disagree or are unsure may relate to how advisers assess the mindset of their clients.  While Mr Sainsbury points to the technology and social media revolution as a ‘game-changer’ in terms of consumers being able to access so much more information for themselves in today’s world, there may be an argument that many advisers still serve a client base that equates information as value.  In other words, it is not a question of the adviser resisting change, but rather the adviser delivering value to their clients in a way that continues to meet their clients’ expectations.

What is your experience with your own client base?  Have their expectations of you changed over time, especially in terms of how they want you to provide value?  Have they remained the same?  Are we witnessing a generational change in how advisers add value?  Or will the basics of how an adviser adds value always remain the same?

Tell us what you think…