How To Supercharge The Review Meeting.

Welcome to the last in the series covering The Review Meeting. We’ve discussed the importance of keeping your clients in lifetime relationshipshigh value versus low value businesses, the cake (and the icing), the importance of delivering lifestyle outcomes and saying your fee loud and proud. However, there is one last challenge to address. How to supercharge the review meeting!

What do you currently do for your existing clients? You know, the ones who have been receiving your investment focused review meeting year after year? They may well have received solid investment or pensions advice from you, but have you ever done a cashflow model for them, or asked them the power questions from George Kinder, Bill Bachrach or Dan Sullivan?

I believe you have to introduce these things to your existing clients at some point, to spice up the relationship and deliver highest value added for them.

If you are a little dubious, then by all means practice on new clients to develop these skills and services, but once you are up and running don’t miss this golden opportunity to “sex it up” for your existing clients (not in a Tony Blair kind of way, of course).

Power Questions

By introducing the power questions you will inevitably find out new things about your clients and their dreams. In my experience as a business consultant to advisers, I know you are resisting this. How? Here is a typical conversation I have with my adviser clients when I suggest they ask their existing clients power questions:

Brett: I really think you should ask your clients these power questions from George Kinder, Bill Bachrach and Dan Sullivan.

Adviser: Really? I’ve worked with some of these clients for over 20 years, Brett. I know them better than I know myself. I don’t need to ask these questions.

Brett: Ask them anyway.

Adviser: Do I have to?

Brett: No, of course not. It’s totally up to you, but I strongly recommend you try it at your next review meeting. You might be surprised!

After the next review meeting.

Adviser: Brett, I asked the questions and you’ll never guess what happened!

Brett: What happened?

Adviser: The client opened up on a whole bunch of stuff I never knew about. I’ve now offered to build them a cashflow model that will include all the new stuff they told me they wanted to do.

Brett: Well, cut my legs off and call me Shorty. No way!

Adviser: Yes. Way. It’s brilliant.

Brett: Good. Now try it with all your other clients as well.

Cashflow Modelling

It’s important to get as many clients as possible to do a cashflow model so that you can address their key concerns, which are: how much is enough and will my money last as long as I do?

By doing this you change the nature of the review meeting, and you can focus on showing your client that everything is going to be alright (and what to do if it’s not). Some firms try to sell the cashflow model as a new add-on clients have to pay for. If you can do that, then good luck to you, but I have to be honest, I’d rather do it for free. Let your clients see the value and insight the cashflow model delivers, and let them know that to remain on this system they need to pay 1% pa not the 0.5% they have been paying. If you position it correctly, this could be your lever to get clients paying what you need them to pay to allow you to deliver your amazing service.

If you already charge 1% pa, then simply introduce cashflow modelling as part of the service you provide. It will make your clients a whole lot stickier and protect you against downward fee pressure in the future. Not only that, you often uncover new opportunities to add value and generate increased revenue from these existing clients, which pays you for the extra effort you’ve made. Some firms call or write to clients before their next review meeting to get the expenditure information (and anything else) they need to build a cashflow model, so that when they come in there is one ready to go (even if it’s a bit rough around the edges and needs some modification as a result of the meeting).

Supercharge: The Power Duo

The key to supercharging your ongoing review meeting is using the power questions and the cashflow model together, as a superhero team (a bit like Batman & Robin). [click it to tweet it]

When clients can see that you have uncovered something that really matters to them (their dream) and then used this great new piece of technology to find a way to allow them to pursue it, you’ve got them for life.

By Brett Davidson

Google

Share:

10 thoughts on “How To Supercharge The Review Meeting.

  • Brett – all good stuff but you’re very very late to the table with promoting Lifestyle Financial Planning including cashflow modelling – I thought you used to poo poo that approach?

    None of the old templates on client service propositions you kindly produced in the past made any reference at all to the most important part of the financial process – the planning and the cashflow.

    Any specific reason now for your epiphany?

    Reply
    • Hi Iain,
      Thanks for your comments.
      For the record I’ve never pooh-poohed this approach. From my first conversation with Nick Cann in Bristol 10 years ago, Financial Planning has always been my thing. As you know I was an adviser for 14 years in Australia before I cam to the UK, I was a CFP and used two versions of cash-flow modelling in Australia, FPI (an old DOS based system) and Visiplan, a very powerful tool.
      In the first few years over here I never got involved in the sale and advice process as I assumed everyone was doing it to a high level. There came a point where I realised that was not the case and so I started to put some new material together. The post RDR environment has provided a big catalyst for many firms who had previously rejected the idea of using cash flows, to get involved hence my higher profile on this issue.
      I love the space and am really enjoying contributing ideas for people to take on board as they see fit.

      Reply
  • Has anybody tried to anglicise the questions with any success?

    Reply
    • Hi Philip, my approach would simply be to re-phrase them in words that are more you. That’s what I do when I ask the questions.
      However, I would also try to stay as close to the original wording as possible, otherwise you often end up asking another question (which is usually not as powerful). When I get advisers to role play using some good questions it is amazing how often they turn a great question into a dud by re-phrasing, so be careful.
      I strongly recommend people go and do George Kinder’s course on Life Planning, or Bill Bachrach’s Values Based Selling courses rather than just taking a question or two in isolation. This gives you a deeper understanding of what is behind the questions and how that understanding can be applied in your Financial Planning work.

      Reply
  • Thanks for the clarification Brett. I’d be surprised if there are 150 UK advice firms placing lifestyle financial planning and meaningful cashflow analysis at the centre of the FP process.
    Most skip the real planning and get straight to the product. (Even where no prof a product needed). Anything that advances real planning is a good thing.
    I think a hat needs to be tipped in direction of Paul Armson for his consistent and pioneering work with advisors in this area over the last 6/7 years. He has never wavered in his conviction.

    Reply
  • Has anybody tried to anglicise the questions with any success?

    Reply
    • Hi Philip, my approach would simply be to re-phrase them in words that are more you. That’s what I do when I ask the questions.
      However, I would also try to stay as close to the original wording as possible, otherwise you often end up asking another question (which is usually not as powerful). When I get advisers to role play using some good questions it is amazing how often they turn a great question into a dud by re-phrasing, so be careful.
      I strongly recommend people go and do George Kinder’s course on Life Planning, or Bill Bachrach’s Values Based Selling courses rather than just taking a question or two in isolation. This gives you a deeper understanding of what is behind the questions and how that understanding can be applied in your Financial Planning work.

      Reply
  • Thanks for the clarification Brett. I’d be surprised if there are 150 UK advice firms placing lifestyle financial planning and meaningful cashflow analysis at the centre of the FP process.
    Most skip the real planning and get straight to the product. (Even where no prof a product needed). Anything that advances real planning is a good thing.
    I think a hat needs to be tipped in direction of Paul Armson for his consistent and pioneering work with advisors in this area over the last 6/7 years. He has never wavered in his conviction.

    Reply
  • Brett – all good stuff but you’re very very late to the table with promoting Lifestyle Financial Planning including cashflow modelling – I thought you used to poo poo that approach?

    None of the old templates on client service propositions you kindly produced in the past made any reference at all to the most important part of the financial process – the planning and the cashflow.

    Any specific reason now for your epiphany?

    Reply
    • Hi Iain,
      Thanks for your comments.
      For the record I’ve never pooh-poohed this approach. From my first conversation with Nick Cann in Bristol 10 years ago, Financial Planning has always been my thing. As you know I was an adviser for 14 years in Australia before I cam to the UK, I was a CFP and used two versions of cash-flow modelling in Australia, FPI (an old DOS based system) and Visiplan, a very powerful tool.
      In the first few years over here I never got involved in the sale and advice process as I assumed everyone was doing it to a high level. There came a point where I realised that was not the case and so I started to put some new material together. The post RDR environment has provided a big catalyst for many firms who had previously rejected the idea of using cash flows, to get involved hence my higher profile on this issue.
      I love the space and am really enjoying contributing ideas for people to take on board as they see fit.

      Reply

Leave a Reply