I've written and spoken often about the fact that we've made a shift from a "relationship-driven" world to a "value-driven" world. As a result, buying decisions are influenced more by the value which consumers see themselves as receiving from suppliers today than relationships that they had in the past; this doesn't mean that relationships don't matter, just that they're a lot less important than they used to be.



For many advisors, the "value" which they provide to clients is extremely difficult to articulate clearly. Many advisors have had the experience of believing that they were providing great value to a key client - only to be chastened when the client jumped ship, obviously not sharing that view.

Having clients clearly perceive the value they're getting from working with you is one of the most critical things you can do.

The first thing, of course, is to have a value proposition to articulate - what is it that clients get from working from you? An effective value proposition needs to meet three tests.

First and most critically, it has to be relevant to clients - bearing in mind that all clients are not alike and that what is motivating for one might be a non event for another. It's essential that we look at this from our clients' point of view, not ours - I recall talking to one advisor who proudly showed me a binder of carefully crafted newsletters, sent monthly to clients. These obviously were a labour of love for him - I didn't have the heart to tell him that in my conversations with investors, they might see things like newsletters as moderately interesting, but few ascribe substantial value to that kind of communication.

Second, the value you provide must be translated into what it means to clients. You need to go beyond vague terms like "a commitment to service" or "regular contact" - you have to go to the next step and explain what that commitment to service or contact really means and how it benefits clients. Show them the specifics of why they are better off.

Third, you need to reiterate your value in concrete terms - not only initially but on every occasion that you can.

One advisor described how she does this. When she brings a new client on board, she spends a couple of meetings drilling deep on all of their goals - not just when and how they want to retire and the investment strategy needed to achieve that objective but issues like education and other financial support for their children and grandchildren, coordinating tax minimization strategies with their accountant, ensuring that powers of attorney and insurance are up to date and putting in place plans to purchase a vacation or income property, support key charities and leave a legacy behind them.

Working with her clients, she then assigns priority to each goal and puts together a work plan for the next couple of years, outlining when each goal will be addressed. She typically meets with important clients twice a year; in addition to reviewing portfolio performance, they spend time on the clients' master plan, ticking off the things which have been addressed and agreeing on what needs to be done next. Importantly, items which have been completed don't drop off the list but remain there as a reminder to clients of all that has been accomplished. Her value as the keeper of the "master plan" is constantly reinforced.

While this approach works for her, chances are that it won't for you. What's important is that you have a clearly defined value proposition that is relevant, that you translate into concrete terms and that you reinforce on a regular basis.