Value.
The idea of value is often overlooked within the financial services industry. Do my taxes…complete my company’s year-end…grow my portfolio…make sure I have enough life insurance, and the list goes on…
Defining your whole business model around value is tricky too. Short-term, Long-term, perceived, upfront, all of these varying degrees of value received or value offered often get lost in translation from professional to client.
The idea of holistically establishing the VALUE a client desires, and then serving that core need is imperative to operating a successful business (not just financial service…but BUSINESS). The dictionary has several meanings for the word VALUE. The first and in my opinion most fitting is;
“Relative worth, merit, or importance: the value of a college education; the value of a queen in chess.”
Isn’t that fitting? Relative worth. Meaning. Value is defined as offering a product or service that has worth to a specific group or individuals in a unique way. By defining the value that each clients desires, financial services can be provided around their needs to not only ensure they are served effectively, but also ensure that their perception of value is met and exceeded.
So if we want to serve the clients needs and deliver the highest level of value possible, how do we do it? Well, there’s no simple answer, but here’s a few ideas:
1) Listen Clearly. If the service provider doesn’t listen enough, even if committed to delivering value, the deliverables most likely will not match the needs. Deliver value in the forms that the client perceives it, rather than what you believe it is. If the client wants oranges, but you like apples more…where is the value in heaping free apples on their lap?
2) View the Big Picture. What is valuable today may not be tomorrow. Develop a plan and value proposition that serves the clients needs over the short and the long term. Some may view this as difficult. “Well, what if your client is insolvent?” The long-term value is rather simple…help them; fix it, right size the ship. The short-term may be as simple as offering peace of mind that in time, things will be restored. Simple to say, difficult to execute.
3) Value is relative. Over the holidays, I watched Wall Street 2 for the first time. Throughout the movie they reference “Tulip Mania,” which was a period in the mid-1600’s where a tulip bulb cost between 3,000 and 4,000 florins (a general labourer earned roughly 300 florins annually). Today, you can buy a tulip bulb for between $6-$10. As value changes over time, so should your value proposition. I’m sure that if your business gave away free walkmans fifteen years ago, many clients would be very grateful, whereas I’m confident that my grandkids won’t even know what a walkman is…Drive value, but be committed to evolving your value proposition.
This discussion is not one that can be solved or mastered, but is an ongoing struggling in any business. We’ve found a way that works for us, and we are always trying to get better. Find out what your customers value, then deliver it.
With the addition over the last year of two fully qualified professionals, yes…JMA as we like to call ourselves is cautiously taking new clients. Over 25 years, we have opened and closed the practice more times than the Leafs have made the playoffs…really! 
