We all want value, in and from everything we do and receive. And value, as real as it is, is very much in the mind of the beholder.
Value can mean very different things to different people. And while this provides financial advisers the opportunity to build relationships based on their client’s specific needs, requirements, and expectations, it can also create a few challenges.
Delivering value to people requires you to have a very clear idea of what’s important to them. What’s important to one person, may have little meaning or value to another. And just because people may appear, or “look” to be the same, I’m sure you will agree that everyone is different. Accordingly, we must be careful not to assume what value actually means to someone. I will share more on assumptions in a later GROW Best Practice Action.
We each equate value differently. But there are some common elements that apply to everyone. So, while your individual prospects or clients may have some specific expectations and unique requirements, you can be sure that all will be considering the Value Equation.
The Value Equation is simply the balance between what we get and what it costs us. That is, how the benefits relate to the costs.
If costs outweigh the benefits (it costs us more than we get in return) then there’s little or no value.
Conversely, if we feel that the benefits, we are receiving exceed the cost to us, we perceive what we are receiving is high, or good, value.
The list of possible benefits is long, and as I mentioned, can be quite specific to each client. Benefits can include confidence, trust, quality of advice, quantity, reliability, peace of mind, return, yield, and much more.
And the cost is more than just fees. Of course, the financial cost is particularly important to us all, but the cost can also include risk, time, worry, effort, pain, fear, worry, stress, anxiety, etc.
So, to deliver value you need to ensure that the Value Equation works in your, and your client’s, favour. That is, the Benefits you deliver must outweigh the Cost(s) to the client. Get that balance right and you will not only deliver but be perceived to deliver, real value to your clients.
Improving the value that advisers deliver is a core focus of our GROW Adviser Capability program.
Keep an eye out for my next article:
How strong is your value proposition-or do you even have one?”
What benefits do you deliver to your clients – generally and specifically to select key clients? And how do they view your Value Equation? Do your clients consider that you consistently deliver value?
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