Many firms adopted tiered service following the RDR, which typically comprised three levels from full financial planning through to transactional. Since then, firms have a better understanding of costs and client reaction to prices and many have moved to a more informed decision about who to target and what service they really value.
This has resulted in more firms offering a single service with variations in the amount of service that clients buy as opposed to distinct packages of service.
If you answer “yes” to these questions, consider a single service policy:
- Are over 80 per cent of your clients very similar in terms of their service needs?
- Do you provide the same components of service to clients, with some simply buying more of your time and expertise than others?
- Are more than 80 per cent of your service outputs to clients identical?
- Do most of your advisers operate in a similar way with similar clients?
- Do you have very few pure transactional clients?
A single service structure is not for all firms but the benefits are streamlining and consistency which can be harder to achieve under a tiered structure.
David Shelton is the author of The Business of Advice book and website www.businessofadvice.co.uk