How rigorous is your client reporting? Do clients value the work you and your staff put into reports? Do they help justify your fees?
One ironic thing I have learned is there is no standard for client reporting amongst IFAs. Some firms produce beautiful output for clients. Some firms simply do not. Why the disparity?
Based on the conversations I’ve had, it depends on the resources available to the adviser, the process that’s in place and the clients who will end up reading (hopefully) the reports. A good combination of the first two may allow a business to service clients that otherwise would not be profitable.
I’ve heard a lot of talk of RDR pushing people towards the banks because normal folks won’t be able to afford an independent adviser. But if an adviser has an efficient process in place that provides automatic report generation and cheaper operating costs, suddenly a lot more people become potential clients.
So is the level of reporting you provide a chore, or an opportunity to demonstrate value to clients?
Client segmentation has been another popular issue. For some clients a simple, compliant report does the job. But for more discerning clients, the value is in the attention to detail. If clients are to pay fees, the quality of information their adviser provides surely plays into the value of those fees.
If your current reporting process is setting you apart from the competition, you are ahead of the curve. If you, or your back office staff, are toiling over spreadsheets and collating documents from 8 different places, it doesn’t have to be that difficult. Consider a process that anyone can follow and make it consistent so clients become familiar with your review process. Consider each client and provide an appropriate level of detail – which will lead to easier segmentation of your client base. And consider the educational value of the reports for your clients because an educated client (usually) makes better decisions.
Producing high quality reports and analysis for clients can be a huge opportunity to add value and distinguish your service. If you’re in need of improving this aspect of your business Morningstar can help. If you’re proud of your client service please feel free to share in the comments below.