How do you promote the true value of financial advice?

By AdviceBridge

According to recent research, most consumers don’t know if financial advice is worth the money.

In October last year, Opinium surveyed 2,000 people on behalf of Hargreaves Lansdown. 46% of people didn’t know how much money they’d need to have before it made paying for professional advice worthwhile.

The findings suggest that, on average, people think having investments of £117,000 would make it worth paying for financial advice. So what about those below this level?

When people need help to understand their financial situation, 22% said they asked a parent while 15% would turn to their partner for help. So how do you engage with this audience?

Most people don’t know whether it’s worth paying for financial advice

£117,000 is an obscure figure to have landed on when trying to decide when it might be worth paying for advice, but the relatively high sum also helps to explain why so many people are reluctant to seek advice.

You know financial advice provides a genuine opportunity to grow your wealth, but how do you relay this to potential clients without bias?

The International Longevity Centre (ILC) provides some useful answers.

Between 2001 and 2006, the ILC tracked individuals who received financial advice and then followed up to see how their wealth had changed by 2014/16.

The International Longevity Centre study proved that:

  • Clients achieved nearly 50% higher wealth when receiving advice at both points of the study than those only advised at the start, proving that an ongoing relationship with a financial adviser leads to better financial outcomes.
  • Receiving professional financial advice between 2001 and 2006 resulted in an average total boost to wealth (in pensions and financial assets) of £47,706.
  • Affluent groups saw an 11% increase in their pension wealth.

As the Hargreaves Lansdown study illustrates, consumers tend not to seek financial advice or speak with a financial planner because of the cost of doing so. But, for most people, gains received from taking financial advice far outweigh the associated costs.

This research proves people can benefit from paying for advice. The question is, how can you turn this to your advantage and have more people approaching you for help making a realistic, achievable financial plan for the future that is beneficial to them?

And further, how can you relay this to potential clients? Here are eight value propositions you should use to promote your value.

8 ways to communicate your value proposition to clients

1. Objective insight

Investors tend to be biased when evaluating their own financial situation. Point this out and help them realise this natural challenge and serve as an unbiased guide who can effectively structure their finances and brings clarity to every investment decision.

2. Goal guidance

Setting financial goals can be challenging. Many clients don’t know where to begin or what is realistic, which can cause them to fail to reach a decision. It’s important to set goals that will make a difference.

If the goals aren’t challenging enough, they could end up financially unprepared for the future. If their goals are too lofty, a client can easily become discouraged, which can lead to them giving up altogether.

You serve as a valuable guide who can help bring their needs, aspirations and goals together and create a bespoke financial plan.

3. Goal tracking

You work with clients’ hard-earned money. Equipping yourself to keep clients updated with their progress is vital. Regular reviews to see how investments are progressing and to ensure they still align with their financial goals is important to maintain commitment and trust.

Reporting may not be sexy, but framed to ensure peace of mind, it becomes an appealing selling point.

4. Portfolio design

Your ability to design a portfolio tailored to meet each client’s life goals is your unique selling point. Help the client understand your reasoning and why it’s designed with them in mind.

5. Tax management

Tax is complicated and few people enjoy dealing with HMRC.

Explain to clients how you can help them manage their finances tax-efficiently and how you invest and plan ahead with tax efficiencies at the core of your strategy. Knowing their money is in safe hands and won’t be eroded by dreaded taxes will give your clients confidence in your ability and peace of mind.

6. Behavioural management

The way you coach and manage clients’ emotional decision-making is a key aspect of your role.

Understanding behavioural finance can allay investors’ fears and concerns. Investors like to buy assets that have gained value instead of those at a low price that have still to realise value. In almost every type of market, investors lose money when they try to respond to news or to anticipate events.

You can make a critical difference by helping your clients avoid these mistakes. Presenting yourself as a capable moderator between investor, their emotions, and their financial wellbeing is a compelling selling point that is seldom used. So, use it to your advantage!

7. Long-term view

Regular daily life – work, family, bills – consume much of your client’s attention. Helping clients prepare for long-term financial events, such as retirement, or the passing on of their estate, provides actual value that will help offer your clients peace of mind.

8. Holistic problem solving

Increasing reliance on technology and more affordable and accessible investment options mean adviser value is shifting. The primary benefit of a financial adviser is no longer just about investment management, but the ability to solve broader financial problems.

You serve as a holistic source of financial guidance, making clients’ lives easier through one, simplified relationship.

Craft each of these selling points with your unique spin and share your value with clients. Consider designing a guide, giving examples of how you do this for new and prospective clients to read at their leisure.

All these points should be highlighted in initial meetings with new prospects. You can enhance your messaging with glossy literature that you can leave behind, but also by using illustrative technology to help give clients insight into what you do and how you can help them meet their financial goals.

Personalise technology and improve engagement with AdviceBridge

The financial planning platform from AdviceBridge enables you to work more efficiently and extend your services to more clients through automating many of the manual processes involved in dealing with client reviews, portfolio analysis and day-to-day engagement.

Whether you want to spend valuable time with your clients, make your business more cost-efficient, or automate your advice journey, the platform is a great way of maximising profits.

Get in touch

If you want to find out how AdviceBridge can help you grow your business, please get in touch. Email or call us on 020 3925 3850.