Tailoring your different client propositions

“In concept, you may have a really hands-on ‘financial planning’ service proposition which is your core business, with a low input ‘maintenance’ one for those who just want some arm’s-length support. You could also do the odd profitable transaction, but you might not promote this.

“Keep it simple is the way to go here.”

Fiona Tait, business development manager at Scottish Life, believes the best way to think of it is that clients should be offered a “full advice service” which comprises all the services which the adviser firm has to offer and the cost of each service.

“If the client cannot or does not want to pay for the full service they can be offered a more streamlined offering where some of the services are either omitted or delivered via a different means, such as technology,” she says.

Ms Tait suggests the client has a say in what service level is best for them: “Once the packages have been designed the client should be given the choice of which package they want to receive and pay for – rather than being ‘told’ by the adviser which one they want them to be in.”

This single proposition, a fully comprehensive lifestyle financial planning offering, is what Alan Dick and his colleagues at Forty Two Wealth Management have settled upon.

Depending on level of fees charged, some clients receive a slightly trimmed-down version of the planning process. “The overall process is the same but the level of client input is greater at lower fee levels to allow it to be delivered cost effectively,” Mr Dick explain.

As it has limited capacity to deal with clients on a regular basis, the firm has to do what it can to ensure it delivers the highest possible level of service to ongoing clients, so does not take on one-off transaction clients.

“We can’t compromise service to existing clients to take on a bit of one-off advice for someone we will never deal with again.”

Offering another view, Mr Billingham proposes that a second-class service could be a possibility for firms that do it right.

“Distance or internet relationships have not harmed Ryanair, eBay, Amazon or Hargreaves Lansdown,” he notes.

“Whilst most of us will not want to be that sort of size, for many ‘maintenance’ clients some distance support, perhaps by a younger, cheaper paraplanner or customer services person or a newer consultant may well be a way of keeping some relationships ‘ticking over’ but still profitable or affordable.”

He suggests the internet, skype, conference calls, webinars and remote login services like LogMeIn are all tools that should be considered as they are “already working for many advisers”.