Can high-quality service go hand in hand with retail sales holiday sales? The answer is yes. In the right stores, and you’ll pay for it. Just go shopping at Nordstom vs Costco vs. Walmart. Now, compare that experience in retail to your experience in Financial Services. Full service vs. discount vs. no service.
What is that service guarantee at your full service firm? At your discount- and no-service firm? Does it exist? The biggest problem with retail service is expectations. You go to Walmart and the only person you might be lucky enough to see is the greeter at the entrance and the check out person (if you don’t use the automatic checkout). What do you get? Nothing. You can’t find anyone to help you. When you do find them, they are stressed out by having to handle too many clients. Cost-cutting at Walmart has stressed the retail sales staff and is ruining their brand. When you go to Costco, you get what you expect. Low prices and warehouse service. Low expectations that are usually exceeded. What about Nordstrom? High expectations matched by high-quality experience. The results of both Costco and Nordstrom create both a happy sales force and happy clients.
Where do Financial Services fit into this mix? Clients are generally happy with Schwab due to low expectations that are exceeded. What about full-service firms? There will be high expectations by the client and without a clear service model there will be disappointment on both sides. There’s a story about a client who came to a full-service firm with $1000 and was asked by his FA what his expectations were for service and contact. He responded, “I really only want to be called once..ah..ahh..week”. This was Sears’s problem. High expectations, low margins and low service.
If you establish a minimum profit margin and and a minimum level of service you will differentiate yourself from other advisors. The Supernova Process is a service model that will work for your business.