November 11, 2023 in Articles, financial services marketing, Sales and marketing

Why Financial Services Firms Should Shift Focus From Sales to Value Provision

In the highly competitive world of financial services, firms are often caught up in the rat race of making sales. However, it’s time for a paradigm shift. The focus should move from simply ‘making the sale’ to ‘providing value’ to prospects.

The traditional sales-centric model is increasingly viewed as outdated and ineffective. In an era where consumers are empowered with information and choices, they look beyond the hard sell. They seek trusted advisors who genuinely understand their long-term financial goals and can provide the right guidance.

Firms that provide real value earn the trust of prospects. This trust is crucial in the financial world, where businesses deal with people’s life savings and future security. A client will only entrust their finances to a firm they believe has their best interests at heart, not one that views them as just another sale.

Moreover, a value-driven approach leads to better customer retention. It’s widely accepted that retaining existing customers is more cost-effective than acquiring new ones. A satisfied, value-receiving customer is more likely to continue doing business with the firm, leading to repeat business and long-term sustainability.

Here are 10 things you can focus on outside of the sale that will build trusted relationships to grow your business organically:

  1. Offer Personalized Services: Firms can tailor their services to meet the specific needs and financial goals of the client. This shows an understanding of the client and fosters trust.
  2. Proactive Communication: Regularly updating clients on their financial performance, new opportunities, and industry trends keeps them engaged and informed.
  3. Education: Offering workshops, webinars, or articles on financial planning and investment strategies can be a powerful tool in building strong client relationships.
  4. Transparency: Firms should always be honest about fees, potential risks, and how they handle conflicts of interest. Transparency builds credibility and trust.
  5. Responsiveness: Quick and efficient responses to client inquiries or concerns show that the firm values the client’s time and business.
  6. Client Feedback: Regularly seeking and implementing feedback from clients can help firms continuously improve their service and show that they value the client’s opinion.
  7. Client Events: Hosting educational or social events for clients fosters a sense of community and shows appreciation for their business.
  8. Regular Financial Check-ups: Offering regular financial health check-ups can help to reassess a client’s financial goals and strategies, demonstrating the firm’s commitment to the client’s long-term success.
  9. Long-term Approach: Firms should demonstrate that they are in it for the long haul with their clients. This could involve discussing long-term financial goals and retirement planning.
  10. Community Involvement: Firms can build stronger relationships by showing that they care about the same community and causes as their clients. This could be through sponsorships or volunteer work.

In conclusion, financial services firms should stop focusing solely on sales. Instead, they need to align their strategies towards providing genuine value to their prospects. By doing so, they can build trust, increase client retention, and ultimately, foster a sustainable business model.


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