Graeme Ballantyne, business consultancy manager at Prudential, explains how to continue demonstrating your worth to both advisory and transactional clients.
Adviser charging – because you’re worth it? You may think you are however, do your clients believe you are?
This could be the difference between retaining your clients in a proposition with ongoing service, or them choosing a more transactional relationship next year.
As part of the Retail Distribution Review (RDR) implementation, advisers are refining or creating their propositions to retain existing clients and attract new ones.
How to continue to demonstrate your worth to clients
This article asks you to consider whether your propositions focus on what you do or whether they could focus more on the benefits the client receives.
A recent report indicated that only 13% of individuals would be looking for an ongoing advisory service, and unsurprisingly the majority of these individuals had assets in excess of £250,000 to invest.
Additionally, the research found that 81% of those surveyed would seek professional advice at some stage, albeit on a more transactional basis. So there seems to be an appetite for a transactional service as well as an ongoing service in the mass affluent space and above.
In simple terms, post RDR there will be two distinct markets. One will be clients who want an ongoing relationship, and the other will be customers who want an advisory service that is transactional.
Each market may divide further but it is not the size of the asset pot that will drive client choice, it is their perception of the value they receive from their adviser.
It is worth reflecting how adviser charging may impact your client bank and the future cash flow in your firm.
This article continues…
Paul Bruns and Elaine Parkes
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