How clients forget your value proposition
Thu, April 26
Stephen Wershing


When your clients refer  you to someone, what do they say? Ideally they would mention some aspects of what makes you different or at least describe the aspect of your advice that had the most significant effect on their lives. What I hear more often, though, is clients referring to the customer service (which is good but generic) or how well the advisor manages their portfolio. If you suspect your clients talk like this when they give you a referral even though you have done lots of planning for them, you are likely getting fewer phone calls than you could.

It is client advisory board season again and I am struck by something I see more frequently than I would suspect. We gather an advisor's top clients and ask them what they value most. When we ask the advisor, the answer is planning. When we asked the clients, the answers often relate to service or portfolio management. There is another exercise where we ask clients to list and prioritize the elements of the relationship as components of the overall value. Once again, if planning comes up it is often low on the list.

From a referral perspective, that’s a big problem. If your client talks about your service or investment management, it will be hard for a prospect to distinguish you from other advisors.

We need to make sure we are regularly engaging in planning so the transformative effects stay top of mind. That way, when your client refers you that’s what they will talk about.

How does this happen? I have a theory.

Once the initial financial plan is completed, planning activities occupy less and less time during client meetings. Some planning issues may get addressed periodically but it stops being the focus of client meetings. More and more of the meetings are dedicated to the portfolio. That’s where there is always something changing, always something new. So, inadvertently, the advisor makes the relationship more about the portfolio than about the planning advice.

Over time, the client forgets how significant the planning was. They still love the advisor but what is current to them are the most recent discussions about the portfolio or the markets. So, when they have an opportunity to make a referral, that’s what they talk about.

Here are a few tips to make sure that the planning stays present with them and gets included in the referral discussion:

One of the reasons you are not getting more referrals may be that your clients are spending too much time talking about investments and not enough talking about the transformational effects of the planning you did for them. The good news is you can fix that. Keep planning (and its benefits) present with your client and they will include it more consistently in the conversation when they make a referral.

Article originally appeared on The Client Driven Practice (
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