Your IndustryDec 23 2015

Making first impressions count

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Making first impressions count

The first meeting is important in laying foundations for the future. Advisers use these meetings to understand the needs of the client and determine whether they want to work with them as much as whether the client is comfortable working with them.

“First impressions count, so it is critical for the adviser to have a clear, consistent structure for first meetings which allows the prospective client the opportunity to describe what they are looking for,” says Martin Bamford, an independent financial adviser at Surrey-based Informed Choice.

Meanwhile Stuart Read, a pension specialist at Devon-based Sabre Financial, says he conducts research on prospective clients via social media and internet sites in order to understand the client and their background.

“The initial face-to-face principle has always worked well for ongoing relationships regardless of whether it continues on this basis as the majority of clients also like to see who they are dealing with and the type of premises/establishment that they are having a relationship with,” he says

Free first hour

While the biggest aim for advisers is to find potential clients, for clients it is to find someone they feel comfortable sharing their financial details and plans for a secured future. Often clients are also worried about spending too much on the process itself and so many advisers tend to provide a first hour free service. This is used by financial advisers to understand their clients and chalk out a plan of action for them in case they were to be hired.

“It would be normal for the first meeting to be offered at no charge,” says Tony Catt, a compliance consultant. “It is purely a fact-finding mission for both parties. Either party could decide not to work with the other. However, it is important at the meeting to set out the terms of engagement and the costs of the services being offered.”

Most financial advisers use this opportunity to outline the services that their firm offers and test the client’s reactions as to whether they value the proposition. While some advisers offer a free first hour to meet with their clients face to face, some companies resort to phone calls as a means to understand their clients better.

“We offer a detailed initial call at our cost with each prospective client,” says Hayley North, a chartered financial planner at London-based Rose & North. “We have a structured process, offering all clients a financial review first so they can ‘try us out’ before we make recommendations. Most clients then go on to do much more work with us.”

Ms North further explains that, if a client is particularly nervous then they meet with them for a ‘quick coffee.’ Referring to first meetings as her ‘favourite type of meeting,’ Ms North says that it gives an opportunity to delve deeper into what a client wants. “We really get a feel for who they are and what they need us to do for them and how the partnership will work in practice.”

Preparing before the meeting

The first meeting is crucial for an adviser since they will want to convert that hour into a business opportunity. Thus, advisers need to prepare ahead of their meetings.

“Preparation counts for a great deal,” says Graeme Inglis, a chartered financial planner at Create and Prosper Financial Services. “Prior to any meeting we would want to find out as much information as possible about the client and their needs and objectives, this would be expanded on during the first meeting.”

He further explains that, in most cases an initial meeting is confirmed by an email providing details of the firm and the individual who will deal with the client. This email also includes a copy of the client information document that will be discussed and completed during the meeting.

Various advisers send out a client information pack ahead of the meeting and only fix a time for a meeting on receipt of a completed pack. This is done to avoid spending time going through client details during the meeting and also to ensure the adviser is briefed about who they are going to deal with.

“We send out a new client pack by post before each meeting so we have as much of the practical information as possible before we sit down for the first proper meeting,” says Ms North, adding, “we also update information on their plans and analyse it before we sit down together. This way we can use our face-to-face time as productively as possible and focus on what the client needs and wants, immediately tying it in with what we already know about their finances.

Technology to the rescue

Some advisers suggest the use of technology to save time and possibly even look more professional in front of clients. Mark Loosmore, executive general manager at IRESS, says advisers can use technology to prepare ahead of their meetings. He suggests performing an online fact-find before going to the first meeting in order to save time.

“Another thing that often happens before the first meeting is the production of an appointment pack, to send out to the client,” Mr Loosmore says. “I would suggest that should be automated. As soon as you put an appointment in the diary for a first meeting, the system should be producing an appointment pack that includes what is going to happen in that meeting, how you are going to engage, suggesting the clients goes online to fill in the fact-find.”

He also argues the use of tablets and iPads has changed how technology is used in the first meeting. “More advisers are looking to use technology, normally a tablet, in front of the client,” Mr Loosmore says, adding “there are a lot of apps out there that will help you show more detailed illustrations and a lot of simple cash-flow planning tools that will help you engage at that level.”

Some adviser firms offer online tools in order to prepare ahead of the meeting. Shropshire-based Matrix Capital Limited has created “Our First Conversation”. This can be downloaded from their website by clients and enables them to complete a set of questions before they go for their first meeting.

The tool asks simple questions, getting clients to voice their concerns, lists out key opportunities and informs the adviser of their strengths. “By going through this process, we are able to hone in on what the client sees as the most important issues and to be able to provide some ‘quick wins’, particularly in terms of dealing with their concerns,” says Robin Melley, a chartered financial planner at the firm.

With technology growing at such a fast pace, advisers can use it to their advantage, whether it is in raising awareness on a certain topic, promoting their product or preparing for a first meeting. It is important to remember first impressions go a long way in starting a good relationship, so it is important to look professional.

“The first meeting sets the scene for a professional relationship with clients, says Mr Catt, “a good first meeting will put the groundwork in place for a successful ongoing long-term relationship.”