This month we turn to an activity that is one of the most frequent challenges we work on with our advice firm clients – helping you to articulate, capture and communicate an engaging Client Value Proposition (CVP).

First of all, let’s be really clear. This is not your client brochure. Instead it’s an internal document that you are going to develop and use to guide the development of your business – it’s actually not for client eyes at all. If developed fully and successfully however, it is your treasure map to success that will guide everything that you do with your clients – how you speak to them, how you write to them, the content you write for your client presentation, website, brochure and newsletters and the services that you provide to clients. It can certainly be classed as one of the most, if not the most important documents that you develop for your business.

This document then becomes the guidebook for you, your staff and your future staff. If a team member cannot or is not willing to deliver this proposition to clients, you need to seriously consider whether they should have a seat on your bus…

Without putting the time and energy into developing your CVP, either of two things are likely to happen. First of all some advisers will not bother with their CVP and will rush to develop a brochure or some other marketing material. Often what happens is that this your brochure ends up reflecting what’s in your head at the moment without any great thought behind it. Often this will look fine today, but six months down the road you recognise that it doesn’t truly reflect your business. The other risk you run when not developing your CVP is that every client ends up with something different. Your processes, charges and promises made are reactive to the client in front of you, rather than proactively developed for your business. So nothing is standardised, everything as a result is “an exception” which results in more work for everybody, and ultimately less profitability for you.

Your CVP gives you structure and a process. It guides you home to structure, process, consistency and success.

 

What is a Client Value Proposition (CVP)?

Let’s start with a definition. “A client value proposition is a clear, concise and compelling articulation of how the factors that are important to the client are satisfied by the company.” The key words in this are “important to the client” because this is where the CVP begins and ends. If you don’t place the client at the very core of your thinking, unfortunately you’re going to miss the mark. Yes, what you do, and in particular what you do well are important. But unless these activities are going to positively impact the client experience, they don’t belong in your CVP.

 

What does a CVP contain?

We have worked with many advisers across the industry, helping them to develop their CVPs. Are there similarities between them? The honest answer to this is that yes there are similarities in places. Many advice firms have broadly similar ways in which they add value to clients. The skill needed is in identifying the unique attributes of your firm and your important points of differentiation, lifting these out and capturing them, for inclusion on your website, brochure or client presentation. We look to identify your points of difference in a range of areas,

  • Why you’re a financial adviser / planner
  • Who your target markets are
  • Your areas of specialisation / difference
  • The outcomes and benefits that your clients will experience
  • What you don’t do
  • Your actual advice process / how you carry out your work with clients
  • The ongoing services that your clients can expect
  • Your review meeting process
  • What it all costs

This is all hard work. It requires time out of the business, deep internal reflection, time and concentration. But the potential rewards can’t be ignored. Spend the necessary time and effort on developing this structured overview of your unique business and it will definitely become your guiding map to future success.

 

If you would like to find out more about how I can help you develop a robust and engaging Client Value Proposition for your business, please contact me at eamonn@stepchange.ie or by phone at 086 2519895.