How many people have you seen that have told you how to change your business? You may have heard a lot of theory but now is the time to start creating your own RDR proposition. The adviser landscape is changing and this creates opportunities but to maximise those opportunities, you need to consider:
- where you want your business to go
- the clients you will focus on
- the services you will offer
- how you will be remunerated
The combination of these items creates your RDR client proposition.
What is a client proposition?
A client proposition is what you say you will do for the client or customer, something they value and for which they are therefore prepared to pay.
- Do you have a client experience?
- Will clients pay a fee or a retainer for this?
- Is it of real value to you and the client now and in the future?
It is about providing the right solution to the right clients at the right time in a consistent, profitable manner. Your proposition is made up of several core components.
The first step is to ask yourself, what is it I do? By understanding what you offer your clients, you are part of the way to identifying your proposition(s).
What is your business objective? Have you got an action plan in place? You need to understand where your business is heading and be able to map the route to ensure you meet your end goal.
Have you segmented your client bank? What clients do you want to focus on? Are you clear what each segment requires and how you will charge them?
What do your clients value and what differentiates you from the competition?
You need to demonstrate what you will do to help your clients and what benefits you will bring to them.
What information do you need before you start?
You need to work on facts and ensure that you have the answers to the following questions:
- What do your clients want from you and your business?
- What do your clients need from you and your business?
- What do your clients expect from you and your business?
- What do your clients value from you and your business?
- What can you afford to provide for clients and customers?
If you do not have the answers to these questions, start asking both clients and prospective customers, you may be pleasantly surprised.
How many different propositions do you need?
The number of propositions is determined by the number of client or potential customer segments on which you are focusing. You are likely to have a variation of similar themes but ultimately the key measures are the value of each proposition to the customer and the revenue generated by each proposition for you. What you could end up with is something like the table below.
To create your client and customer propositions you need to:
- Be clear about what it is you actually do
- Determine how do you differentiate yourself from the competition
- Understand how you add value
- Decide what client and custo-mer segments you are targeting
Finally, you must start thinking about how you will charge these segments.
Remember, the products and services that succeed are those that offer a benefit to consumers that is greater than the perceived cost.
With the right client and customer propositions in place, you can create relationships with profitable, loyal clients and potential customers and make yourself “fit for RDR” as a result.
Check out our free RDR transition website at www. aegonse.co.uk/businessbrain and see how you can develop and implement your client proposition now.