Why a client or prospect should do business with YOU, instead of anyone else?
Your competitive advantage comes from “deliberately choosing a different set of activities to deliver a unique mix of value,” according to Professor Michael Porter. “Strategies may center on low-cost leadership, technical uniqueness, or focus.”
Of course, it’s not about simply being “different,” - that difference must deliver value.
The more value you deliver contrasted to your competitors, the more unique you will be. Value must be in the eyes of the client.
You will always be one of at least several advisors offering what you offer. Take these five actions to be in the top percent of your marketplace:
These are core requirements for success. They are the basic cost of entry into today’s and tomorrow’s advisory business, though they may not make you 100% unique...
Narrow your competition by offering your services and solutions to a specific niche.
For example: “business owners” is not a niche, it’s too broad.
“Plumbers or electricians in a geographic area” can be a niche if there are enough of them.
If you are in Cincinnati, perhaps “individuals retiring from Proctor and Gamble” can be a niche. Proctor and Gamble executives can be a niche. Airline pilots may be a niche, though it could be more specific as in “Delta Airline pilots based in Atlanta.”
Be prepared to offer unique value to your niche, but don’t be surprised if you are not the only advisor seeking those niches.
Here’s the good news:
If you are great at what you do, if you have a niche, and especially if you build relationships...you should be successful.
“When all else is equal, I make the difference.”
Be clear and convinced of the value you deliver to your clients.
Pricing Integrity says: “... at the core of pricing inconsistency we find that advisors are not fundamentally convinced that they provide significant value to their clients”.
Studies conclude that up to 90% of the decisions we make are based on emotion. We use logic to justify our actions to ourselves and to others. In your client acquisition efforts, take note that emotion will almost always prevail over logic, and imagination will almost always prevail over reality.
David I. Leo, Develop Your Differentiation Strategy Snippet 2
David Leo is Founder of Street Smart Research Group LLC. He is an author, speaker, coach, consultant, and trainer to financial professionals. David is an experienced business manager who works solely with Financial Advisors, Planners and firms who want to organize, structure & grow their businesses by attracting, servicing, and retaining affluent clients.
If you have questions or would like assistance in personalizing and implementing approaches from The Financial Advisor’s Success Manual, schedule a free 45 Minute Strategy Session at https://calendly.com/davidileo or contact me at David@CoachDavidLeo.com or visit my website at www.CoachDavidLeo.com
My book is available at Amazon at https://www.amazon.com/Financial-Advisors-Success-Manual-Structure/dp/0814439136