The Importance of Nailing Your CVP
The Royal Commission marked a turning point in the history of Australian financial services.
Finally, years of fraudulent activity and unethical advice was uncovered on the national stage – exposing the financial advice industry and leaving the regulator’s mortified.
The ensuing regulation and legislation were intended to get rid of the dodgy advisers, ensuring that clients ’best interests are always met, whilst simultaneously moving the industry towards a ‘professional status’.
But as the dense fog created by this incredibly lengthy and costly process finally begins to disperse, the unintended consequences of the Royal Commission are now visible for all to see.
Higher costs to serve, and ultimately greater barriers for those seeking access to quality advice.
In the present compliance-laden, scrutiny-heavy landscape, costs are soaring within the industry as quickly as advisers are leaving it.
The sheer amount of time and effort which goes into delivering advice today mean the cost to deliver advice is now significantly higher than in the years preceding the Royal Commission. This is placing additional pressure on an industry already struggling with:
- Client drop off – a result of the shift to Long Term Service Agreements.
- Fewer clients walking through the door – in part attributable to a loss of consumer trust, and the drying up of many of the wells containing an ever-replenishing source of new client referrals.
Despite the recent turbulence, the need for quality financial advice remains unchanged – particularly for those who find themselves living in an increasing state of anxiety as the economic impacts of the pandemic materialise. Australia needs great advice from great advisers, no matter the obstacles and red tape.
So how then do you continue to deliver quality advice that meets all of the ongoing regulatory and legislative requirements, while at the same time ensuring you’re still here to deliver great advice for your clients long into the future?
In my experience it begins and ends with a sustainable pricing model.
If delivering quality advice is your #1 priority, charging your clients fees which result in the profitable delivery of the same advice must be priority #2.
Passing on the additional costs of delivering advice, as difficult as this may seem, is the only way to guarantee a prosperous future for your clients and that of your own business.
The challenge for most advisers then becomes “how do I position higher fees successfully?”
Quite simply, you must effectively articulate the value of the advice you will deliver to your client.
An incredibly simple way of doing this is to develop your own Customer-Value-Proposition (CVP) tool. A CVP tool is invaluable when it comes to mapping out the sum of total benefits your client will receive when engaging your services. This includes highlighting the many hoops you must jump through to deliver the highly valuable, and compliant advice and guidance they will receive from you.
If you did nothing else but focus on nailing your CVP over the course of the next three-six months, I can guarantee the results from this would out-strip any other strategy within your business ten-fold.
Stuck on how to develop a CVP tool? Shoot me an email at firstname.lastname@example.org with the subject line – CVP strategy call. On your no-obligation 30-minute call I’ll share the very same CVP tool I’ve used to successfully grow revenue in my advice businesses by more the 30% in the past 12 months – and walk you through exactly how to use it in your business.
For those who can afford it – they must see the value: second only to delivering quality advice, this has now become a top priority for advisers across the country.
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