From customer to client
Clients and customers are terms that are often used interchangeably but it is paramount for intermediaries to recognise and understand how they differ, according to Steve Billingham.
For Mr Billingham, the director of West Sussex-based Steve Billingham Consulting, the sole characteristic shared by both clients and customers is that they are people with a specific problem that they are seeking help to resolve.
He said: “The nature of the ‘customer’ relationship tends to be transaction-based rather than relationship-based. For example, I am a customer of both Tesco and Waitrose, but a client of neither. My weekly shop is transactional.”
The client relationship, however, sees the adviser take a genuine interest in individuals, offer an ongoing service and keep in regular communication and contact.
“It is really about putting the client’s interests right at the core of the adviser's business operations and treating every client as an individual. Yes, it is important for adviser firms to have consistent and repeatable processes but clients do not want to be viewed like a customer – that is, as just a number.”
He added: “In the financial services sector we work hard to build long-term relationships and look holistically at all the individuals' financial planning needs and establishing what is really important to them rather than just dealing with a single issue.
Advisers should strive to mould their generic services around their clients’ preferences, according to Mr Billingham. What this could entail for intermediaries in practical terms, he said, is to send letters rather than emails to clients who may have alluded to a preference for the former in the past.
What is more, advisers could arrange annual reviews at a time which best suits the client, rather than attempting to package these meetings in one month of the year.
The format of these meetings does not have to be the same for all clients, but can be tailored to offer a unique experience – which would serve to further endear the adviser to the client, Mr Billingham said.
He added: “You wouldn’t necessarily be able to do this if you have 100-plus clients because it wouldn’t be practical – advisers need to take this into consideration.”
“When it comes down to it, it doesn’t matter whether you see the individual as a client of yours… it’s whether that individual sees themselves as your client in their mind.”
Allan Maxwell, director at Glasgow-based Corporate Benefits Consulting, said: “All clients are customers first, but it is up to the adviser to develop a long relationship with them. A lot of people approach an adviser seeking one-off advice on pensions but more often than not, the adviser can see that ongoing advice is required to help individuals achieve what they want to achieve to have a comfortable retirement.
He added: “I would say that those who in the wealth management side of financial planning deal mainly with clients but those who advise on mortgages and protection products are more likely to come across customers.”
