Finding Gold wihin your business GMC Conference Session

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Super Profits

Cut to the chase... Most adviser marketing

dollars are wasted Everyone wants to

make more money Everyone thinks more

money comes from having more clients

Everyone wants new prospecting ideas therefore

BUT More clients equal more servicing, distractions, cost

AND Not all clients are good clients

The real issue: Getting More $ per client

We’ll consider the strategic overlay

What you actually control

What is the Profit formula

Look at 2 real examples

We will talk tactics

Some suggestions to go for gold

Strategic Overlay

Consider these facts....•60% advisers see themselves differently to what they actually do•Advisers are the No 1 source of financial information for only 19% of Kiwi’s•79% of marketing leads never convert•Those who NURTURE leads generate 50% more in sales, at 33% less marketing cost•Nurtured leads make 47% larger purchases than newly qualified leadsTo create a Customer there must be TrustThen build LoyaltyThen Confident Customers refer

Smart: Control what you can

PROFIT is having more total sales than the cost of sales and expenses.

Super Profit is having WAY more – ridiculous ROI

The path to Super Profit: know what you can control. That is: Expenses, Cost of sales, or Total sales

Time permits us to concentrate on only 1 element, so we’ll go for “Total Sales”

Super Profit Formula:

The QUANTITY   (no of prospects x conversion rate)

X QUALITY   (no sales/client x average sale/client)

X LEVERAGE   (systems/capital/etc – time & capacity)  X   MARGINS     (cost of sales + expenses as %)

=       SUPER PROFIT    

Quick recap....what you can control

Prospecting – potential ability and appliedConversion ability – prospects into customers, customers into clients, clients into COI, etcNumber of things you sell to each customerThe $$ value of each thing you sell

To go for gold, focus on what you CAN control

Case Study: Single Adviser Practice

2009: $140,600 API. Average sale $1,3152010: $138,700 API. Average sale $1,576

One Change made: Review every A & B client2011 Results:$255,360 API. Average sale $2,201

32% increase in number of sales39% increase in average sale size84% increase in total New Business

Case Study: Large multi-adviser practice

2010: A large advisory force, risk only, average API per sale $1,200

One Change made: “Full needs analysis”2011: Average sale size grew to over $1,500 API. Sales volume increased only slightly (3%). 25% increase in business from same clients, same advisers, same products

Which levers work for what?Quick Impact

Lift volume of prospects.Lift quality of prospects (affordability)Raw activity – yours or others. (avg adviser 6 appts/wk?). “SEE the people”Conversion – LENGTHEN time/client (I am totally serious!)Use meeting agenda. Set expectations.Micro campaignsSelective fee-setting. Mini projects.

Number of sales/customer: Start Small (base cover enhancements). Move to Medium (complementary services & product lines).

Long Term Gain

Average sale value with needs analysis +36% (e.g. 1100 API to 1500 API)Focus on being main information provider. Content marketing is the go.Improve skills AND expertise. Know more, teach more, solve more.Tell them what you can doClient segmentation. Focus on those you can get exceptional return on.Number of sales/customer: Think Big. Bigger issues/solutions. Go for wallet share – think lifetime value.

Use Leverage. (people, $, infrastructure)

Content Marketing:

Action Plan

Promotion planned. Regular, programmed.Core Marketing activities scheduled.Regular COI activity scheduled.One-on-one prospecting time allocated.Client (revenue-generating) meetings plannedClient meeting prep & follow up planned...then allow the gaps to be used for “office work” and “drop-ins” or “service” work.

Pulling it together...

The sales bone’s connected to the marketing bone...the marketing bone’s connected to the CRM bone...

Getting the right things done right, in the right order...

Communicate. Talk to people.Have to get busy & active. Low hanging fruit first. Focus on BLUE things in Super Profit formula at start (quantity, quality, leverage – in that order)Be the information source – content!Build trust with quality information; affordable solutions to their needs; professional process; clear expectations.THEN you are becoming referrableCommunicate. Talk to people.

For more information or ideas, check out:www.strictlybiz.co.nz

TonyVidler

http://tonyvidler.blogspot.co.nz/

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