Crm-2: Turn A Challenge Into Opportunity
In the blog titled CRM-2: What you need to know, a number of the changes that are being introduced as part of Client Relationship Model – Phase II (CRM-2) to increase transparency when your clients are buying, selling or just holding mutual funds were discussed.
These changes – particularly one being launched in July 2016, in which a summary of all fees, charges, and commissions, in dollar terms (not percentages), that the client has paid in the prior calendar year will appear on their January 2017 annual client report – will likely impact the way you conduct your business. That said, this challenge can also be looked at as a significant opportunity for those advisors who are prepared to speak to these changes directly.
The following are two quick tips for turning CRM-2 into a business-building opportunity:
Use CRM-2 as a touch point. While some advisors may be worried about the impact of CRM-2 on their business and may be considering taking a passive approach to dealing with these changes, their clients will be seeing things differently. These clients are going to be getting statements that include a lot more information, and that information may cause confusion and/or frustration. Advisors who proactively contact their clients and take the time to review and explain these account statements will likely be the ones who keep more of their clients.
Build your value proposition. It is a good idea before you plan these client meetings, however, to review your value proposition (or to create a new one) to ensure you can clearly articulate the value you provide. When writing down a concise value statement, you want to consider not just what you do when you meet with your clients to review their portfolio and financial situation, but also include things like your work experience, ongoing training and education, research, back office support and the many other intangibles you generally wouldn’t think to speak about on a day-to-day basis. These are all areas in which you have likely invested a considerable amount of time and effort to hone your craft and increase the value you bring when helping clients build for the future. That’s why it’s important you talk about them.
These are just two of the many ideas that can help you turn CRM-2 from a challenge into an opportunity. Watch for future blog posts on this important topic of the changing regulatory landscape.
