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Hosted by Financial Advisor Coach, Ray Sclafani, "Building The Billion Dollar Business" is the ultimate podcast for financial advisors seeking to elevate their practice. Each episode features deep dives into actionable advice and exclusive interviews with top professionals in the financial services industry. Tune in to unlock your potential and build a successful, enduring financial advisory practice.
Ray Sclafani (00:00.366)
Welcome to Building the Billion Dollar Business, the podcast where we dive deep into the strategies, insights and stories behind the world's most successful financial advisors and introduce content and actionable ideas to fuel your growth. Together, we'll unlock the methods, tactics and mindset shifts that set the top 1 % apart from the rest. I'm Ray Schlaffani and I'll be your host.
So let's consider moving beyond the old 12-4-2 approach to client contact and consider a more dynamic and episodic approach to client engagement that's far more powerful and focused on the client. You know, when somebody repeats the same thing over and over again, often enough, it eventually becomes accepted as truth, even when it's not. This phenomenon, which psychologists call the illusion of truth, is surprisingly relevant when considering our industry's approach
to client engagement models. Let me share a story with you. On a cold, snowy morning in Denver, I was sitting quietly in the back of a grand room surrounded by the elite minds of the advisory world all gathered for their annual top advisory council meeting. As I prepared for my keynote address, the anticipation hung in the air like the snowflakes just outside, each one unique, each one full of potential. The room was.
buzzing with a client of energy that made you feel something significant was about to happen. And I knew my moment on that stage could change everything. As I waited in the wings, the speaker before me, continued to drone on and on, extolling the virtues of what he called the traditional 12-4-2 approach. You've probably heard about it before, you know, contact the client every month with a phone call, meet with them quarterly in person, schedule two educational events or
gatherings with groups of clients and ask them to bring a friend. You know, it sounded to me like the same tired mantra I'd heard countless times before, this formulaic gospel that had seeped into the very bones of the industry. But something in me bristled at its rigidity, its lack of imagination. And I couldn't help but wonder if there was a better way, something more dynamic, something more episodic that was attuned to the true needs of clients.
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This thought not at me and the very next day I resolved to find out. I began to ask many of the advisors we coach. In fact, I even ran a study and not a single advisor told me that this 1242 model was either effective or even true. When I asked about it, many mentioned, yeah, I've read some book years ago talking about that model or a speaker. Yeah. I heard about a speaker on stage once talk about that or, there's a
coach, so-called coach who advocates for this approach. But over time, those who grew their businesses most effectively, I learned, and who had retention rates exceeding 97%, all told me they learned to focus on what their clients actually wanted and needed rather than ascribing to some preordained schedule. Clearly, it was time to rethink this old, outdated model, especially in light of the evolving current
client expectations and the major technology advances. So let's talk about this more dynamic episodic approach in greater detail. At ClientWise, we've learned from the best in the business that a more dynamic and episodic approach, which is supported by artificial intelligence and predictive analytics, offers a far more effective and personalized way to engage with clients. Rather than adhering to some rigid schedule, this more proactive personalized approach
strives to interact with clients based on significant life events and major individual milestones. So in other words, break the status quo, consider new and different ways to engage and add value, use some combination of AI, data analytics, and then ask clients what they want. Today's advisors are building greater trust and growing deeper relationships with clients when they actually monitor each client's life event, such as
career changes, family milestones, weddings, divorces, deaths, births, financial windfalls, selling of businesses. Well, all of this requires the proactive outreach with communications and services tailored to the specific needs that arise from these kinds of events, which provide far more targeted and relevant advice and support. know, AI also allows you to analyze clients' behavior.
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and predict potential changes in their financial situation or life circumstances to anticipate needs and offer timely solutions. It can also identify early warning signals and mitigate potential risks before they escalate. Instead of clinging to some outdated 1242 schedule or any rigid structure that's become so routine in your firm it's lost its authenticity, it's time for a change. We need a more flexible, more responsive approach
that adapts to each client's unique needs and preferences. Imagine a strategy where the frequency and mode of communication are tailored to align with your client's life stages using a multi-channel engagement structure, such as video calls, messaging apps, and social media. This way, you stay connected in a manner that fits seamlessly into your client's active, more modern lifestyles. While switching to a more dynamic and episodic approach,
may seem like a somewhat radical shift, it can be implemented without needing major structural changes to your organization. All it takes are the following four modest upgrades and improvements. The first is simply ask the client how frequently they prefer to be contacted by you. This is a crucial step in building a more personalized, engaging, and relevant relationship. By understanding their communication preferences, you can tailor their outreach
to align with clients' lifestyle and needs, ensuring more timely and impactful interactions. This approach enhances client satisfaction and demonstrates ultimately your commitment to providing a truly customized experience. Engaging clients in this dialogue fosters more trust and strengthens the overall advisor-client partnership. To understand the frequency and type of touch points that would best suit each client, the financial advisor
could ask the following questions. I'm gonna give you three and each one has a follow-up question. First question, ask the client simply put, "How often would you like to hear from our team and me regarding your financial plan and investment updates?" The follow-up question might be, "Are there any specific times of the year when you prefer more frequent communication?" Second question, "What type of communication do you find most convenient and most effective?" For example, "Would you prefer us to email you, call you,
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do video meetings or more in-person meetings?" And the follow-up might be, "Are there any communication channels such as messaging apps or social media that you'd like us to use?" Third question, "Are there particular events or milestones in your life upcoming where you'd like more proactive communication and advice?" And the follow-up is, "How can I best support you during those times?" You know, after all, you don't know if you don't ask. These questions help tailor
the engagement strategy to the client's preferences, making the advisor's interactions more relevant and valuable. Okay, secondarily, let's talk about better CRM technology. You must integrate advanced CRM capabilities incorporating AI and predictive analytics to track and analyze client data effectively. Wealthbox, Redtail, Salesforce Financial Services Cloud, these are three examples of CRM systems with AI-driven analytics embedded
that can flag significant changes in behavior and even predict life events based on historical data. Third, enhanced advisor skills. More responsive outreach will require deeper emotional intelligence. Train your advisors to better understand and empathize with clients, all of the evolving needs they have, the concerns the clients have, and ensure that the advisors are well-trained and equipped.
with the latest AI tools, financial tools, and technical competence. Okay, fourth, focus client education, activating the client and the role they play in all of this. Not only should the client be transparent about the benefits of a more dynamic and episodic approach and how it enhances their overall financial security, but the client should also be encouraged to share regular updates about life events.
any changes in their financial goals or vision for what they want to accomplish. All of this kind of life planning way of thinking was introduced many years ago by George Kinder, who's often considered the father of life planning. He created a big movement in our industry many, many years ago. In fact, he's got his latest book out. I'd encourage you listening to the episode today to go and pick it up. It's not just about managing money, he says. It's about helping clients find their freedom.
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and living the lives they were meant to live. I'll put the title of the book in the show notes in this episode. When your advisory team connects with clients on this deep emotional level, the partnership formed by inviting them to share their stories reaches a whole new level of engagement. Let me share a terrific example of client engagement at a whole new level. In a recent Business Builder Academy workshop here at ClientWise, there was two founder controlling owners of Anthology Capital Solutions,
that were sharing their capability deck with the group. It's something we do at ClientWise regularly in our academy, a series called Show No Tell. It's good to talk about the work you're doing, but hey, show us what you're doing in your firm. Well, firm leaders, Armen Khadiwala and Nick Langefels did exactly that. They founded their firm to help their clients live lives worth telling stories about. Get it? Anthology. They tell their clients, your vision is our mission. Now that's profound.
All of their client interactions, all of their client engagement models, all of their client communications are oriented around life goals, life events, and helping clients achieve financial security and create the kind of freedoms that George Kinder talks about. The operational benefits of this more responsive model can be incredibly far reaching and transformative for your business. Personalized, timely engagement fosters stronger relationships, higher client satisfaction.
more proactive and relevant interactions help measurably increase client loyalty and client retention and needless to say increased introductions from those clients. This also empowers your team to provide more accurate and relevant advice, which improves overall service quality. So in other words, you've got to be paying much more attention to implementing a more episodic, authentic, dynamic, bespoke engagement model.
It's one of the most worthwhile investments you can make in your business in terms of long-term success and sustainability. It'll even help you stay attuned to your client's evolving needs and take advantage of AI's power to anticipate changes. With each episode, I enjoy introducing four or five coaching questions. So today there are five. Five coaching questions. First, considering your current client engagement model, what steps will you take to increase client satisfaction?
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client loyalty and client retention and improve overall operational efficiency. Second, how might adopting a more dynamic and episodic approach to client engagement transform how you and your team connect with clients on a deeper, more personalized level in the future? Number three, how can you leverage or are you currently leveraging AI and predictive analytics to anticipate your clients evolving needs and proactively provide them
tailored advice and support.
Fourth, what new skills and tools do you think your advisory team will need to fully embrace a more flexible, client-centered engagement model, and how can you start delivering those today? And fifth, how can you encourage your clients to share significant life events and updates with you more regularly? And how might this shift in communication impact the long-term success of your advisory practice, especially if you seek to build a multi-generational relationship with the client?
Well, thanks for tuning in. And that's a wrap. Until next time, this is Ray Sclafani. Keep building, growing and striving for greatness. Together, we'll redefine what's possible in the world of wealth management. Be sure to check back for our latest episode and article.