Secure your top clients

The concept of these plans is simple: if you were an account manager working for Procter & Gamble Inc. with responsibility for managing the Wal-Mart or Costco account, you would spend 30 days every year developing a comprehensive, 200-page business plan for that account.

It clearly doesn’t make sense to spend a month developing a 200-page business plan for even your largest client — but how about 30 minutes to develop a four-page plan?

This advisor had attended a workshop in 2009, where he saw the template for a four-page plan for use with key clients. It summarized the client’s background, identified opportunities and set out specific action plans.

In early 2010, this advisor and his team developed these plans for their top 20 clients. They took about 30 minutes each initially, with a further 10 to 15 minutes to update the plans a year later. In this advisor’s view, the time he spent in putting together these plans was his highest-return activity each year.

> Key Background

The first step is to concisely summarize background on each key client. Here’s what the background portion of the plan template might look like, documenting client information in 12 areas. Consider using this as a starting point for your own key client plans, modifying it to suit your own situation.

1. Current Situation. Write a short summary of key trends on assets and revenue.

For 2009, 2010 and 2011, show revenue for each year as well as assets at the end of the year.

In addition, document how long you’ve been working with this client, and how you came to work together.

2. Financial Priorities. Summarize this client’s top three financial issues and priorities.

3. Assessment Of Client Satisfaction. How satisfied is your client on the key dimensions of your relationship? On a scale of one to five (where one is low and five is high), write your assessment of how satisfied your client is on these key dimensions:

> performance of investments;

> confidence that he or she is on track to achieve goals;

> frequency of communication;

> quality of communication — the client feels listened to and that key questions and issues are addressed;

> overall relationship.

4. Plans In Place. List the kinds of written plans this client has in place, whether they have been completed in whole or in part, when they were prepared, when they were last updated and who prepared them.

Among the plans to include are:

> financial plan;

> investment plan;

> retirement plan;

> estate/insurance plan;

> tax plan;

> cash-flow plan.

5. Preferred Contact. How does this client want to hear from you, and how often? Document the client’s preference in terms of contact by methods such as telephone, email and face-to-face meetings.

As well, identify the frequency with which you used each of these methods to communicate with this client in 2011, and your goal for each of these in 2012.

6. Your Knowledge Of The Client. This section identifies gaps in what you know about your client. Rate your knowledge from high to low in terms of the client’s financial situation, work situation, family situation, hobbies and interests, retirement plans, and any health and personal issues.

Then, identify knowledge gaps and plan to fill them in the next 12 months.

7. Professional Advisors. List the name and contact information for this client’s accountant and lawyer and other professional advisors. On a scale from one to five, note whether you have met those professional advisors and the strength of your relationships with them.

8. Percentage Of Assets Held. Approximately what percentage of this client’s assets do you hold? Where are outside assets held, what do they consist of and what is their approximate value?

What is your history of bringing in additional assets from this client? When was the last time you talked to this client about this issue? Where clients hold assets with outside firms, have you offered to prepare a consolidated quarterly snapshot of all of the assets?

9. Relationship With Heirs. Where do you stand in terms of your connection with your client’s spouse and family members?

List the name of each person who will receive a substantial inheritance from this client, starting with the spouse and including adult children. In each case, identify whether you currently have his or her account and rank your relationship with that person on a scale of one to five. Include any comments on your relationship with each of this key client’s heirs.

10. Past Referrals Provided. Record cases in which this client introduced you to friends and family, including the date, the assets of the potential client and the outcome of the referral.

11. Close Associates. List the client’s closest family members, friends and work colleagues. Indicate whether at some point you have met each individual.

12. Past Social Activity. Here, you summarize any instances in which you met with this client socially. List the event or activity, the date and any response or feedback you received from the client. Based on that feedback, should you repeat this type of activity in the future?

 

> Capitalizing On Opportunities

Once you have the background documented, the next step is to identify business opportunities and formulate a plan to capitalize on those opportunities.

1. Hot Buttons. What are the one, two or three issues that this client worries about the most, and will motivate him or her to act?

2. Opportunity Checklist. Make a quick summary of gaps in this client’s financial affairs, identifying anything that needs to be done to ensure the client’s basic affairs are in good order. Here is a list you could use as a starting point. For each of these items, indicate whether there is work to be done on them in 2012, whether for the client or for the client’s family members:

> cash-management account;

> RRSPs;

> GICs;

> registered education savings plans;

> registered disability savings plans;

> tax-free savings accounts;

> critical care insurance;

> life insurance;

> long-term care insurance;

> powers of attorney;

> wills.

3. Key Client Opportunities For 2012. Write down the one, two or three key ways you can help improve this client’s situation in the next 12 months.

4. Key Business Opportunity For 2012. Identify the one goal with this client that  would advance your own business in the next 12 months.

5. Key Steps For 2012. What specific steps are you going to take in 2012 to achieve these goals?

The past four years have tested many client relationships. It is now important to be proactive and disciplined in managing relationships with your most important clients. A client opportunity template such as this one can play a key role in making that happen.  IE

 

Dan Richards is CEO of Clientinsights (www.clientinsights.ca) in Toronto. For more of Dan’s columns and informative videos, visit www.investmentexecutive.com.