How technology is revolutionising planning practice models
Affinia’s Craig Parker discusses how customer centricity is emerging as the new practice business model.
The sales and product culture that has been associated with advisory practices of the past are giving way to a new customer-centric culture.
A customer centric culture is a remarkably simple concept: put the customer at the forefront of each and every business practice.
But why is this happening?
Consumers are becoming more market savvy and are increasingly interested in comparing products and services in terms of cost, offering and service.
Technology – websites, portable devices and social media – is partly responsible for driving this change in consumer activism behaviour.
So as consumer behaviour changes, so must that of the businesses that service those consumers in order to meet their changing needs and expectations. When their needs and expectations are not being met, they find somewhere else where they will be.
A recent report called Consumer Trends in Australia (by Tony Hackett) found that consumer behaviour has evolved to the extent that people are more active and discernible in terms of expectations for price, service and brand (ie, they are far more demanding than before).
And they are not afraid to use technology to do their homework. The research showed that half of all retailers (48 per cent) said they looked to communicate with customers via Facebook to meet customer expectations, and 29.2 per cent have communicated with customers in 140 characters or less via Twitter.
For advisers, customer centricity could be equated to having meaningful relationships and effective communications with their clients, demonstrating the value they bring to their lives and addressing their practical needs for financial protection through risk insurance.
It is also about ensuring an adviser chooses the right products and services for their customer by deeply understanding their needs.
An open APL (approved product list) is a clear demonstration of putting the customer first, because it ensures a practice is not limited in what it offers. In the new practice I head, choice for both adviser and customer is central to delivering the best outcome for the consumer.
Having been in the financial services industry for over 20 years, I have seen first-hand this consumer change take place and how it impacts small business owners and financial advisers.
But over recent years, the increasing regulatory burden coupled with a changing economic landscape, have meant that many small business owners are spending more time than ever on administration, marketing and business planning, and less on client relationships.
Dealer groups must take their share of the blame for this. Many advisers have reported to me that their licensee has been less than helpful in lightening the burden of running their businesses.
This year, I would like to
see our industry get back to basics and re-focus on what we’re good at: relationships with our customers. And I would like to see dealer groups step up to the plate to provide the services and support their advisers need to enable them to get back to the coalface and do what they do best.
So what are the areas where dealer groups can do more to support advisers to build and manage customer relationships?
Time and time again, advisers tell me that their most successful client relationships happen when they can engage with their clients as people, and on the same level. Mums and dads don’t speak in corporate buzzwords or ‘legalese.’
If we want them to understand value of life insurance, we need to communicate the benefits in an accessible and appealing way.
Historically, this is something we as an industry have been poor at. Dealer groups need to take the lead in assisting advisers to excel in communicating to their clients – simply.
Social media has been changing the face of business across all industries, but I would say that the risk sector has been slow to adapt to the opportunities it can bring to help us connect with our clients efficiently and engage with them on their terms.
Dealer groups need to do more to help advisers leverage social media to connect with clients, both existing and potential.
Most advisers I speak to don’t just enjoy spending time with their clients; they also enjoy interacting with their peers.
When like-minded people join together in a spirit of collaboration, the opportunities for sharing knowledge, experience and ideas can be game-changing.
By utilising the power of social media, alongside face-to-face events, we can build a dynamic community. Imagine the possibilities if this vision of creating not just networks, but genuine communities, could be rolled out across our industry. We all have a role to play and there are plenty of opportunities for all of us to share in.
All these activities are about engaging with our stakeholders to help us better meet consumer expectations. I believe the risk advice industry needs shaking up, and that 2013 is the year a new era of customer centricity is to commence for the industry.
By focusing on what we’re good at – our customers – as an industry we can work together to bring life insurance to more and more Australians, make it more relevant in people’s lives and better meet their needs, while at the same time enhancing the standing of our industry and our practices.
Craig Parker is head of TAL’s financial advice arm, Affinia.
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