How Do You Lower Costs to Service but Increase Quality?


As the saying goes, the journey is more important than the destination.

You probably read the headline and think it sounds too good to be true.  How can I:

  • Fuel Revenue Growth?
  • Increase the Likelihood of Clients Staying and Renewing?
  • Increase Willingness to Recommend/Refer?
  • Less Likely to leave me for another adviser or equivalent?

Not only that, but what is the key to improve all these performance metrics within the same framework.  That’s the type of research that was conducted at McKinsey and delivered at Harvard Business School.  Read on.

User Experience, Client Experience

As Financial Advisers, you know how important it is to keep clients engaged and how important high-quality, high touch-points is the lifeblood of your business.  In the in-depth interviews I’ve conducted with hundreds of Financial Advisers, the #1 thing that makes or breaks a practice is how to consistently earn the trust of clients.

While that is all well and good, the question then becomes, what does a successful practice look like and how to optimize financial advisers for successful in creating this seamless experience.

Financial Advisers: Take a page from the largest Management Consulting company in the world on How to Improve Client Experience

Let’s dive deep into the latest research from McKinsey.  The research on Improving Client Experience reveals that leading client-facing organizations create successful Financial Planner practices by identifying and managing customer journeys.

What McKinsey has found is that managing your customer journey can significantly create:

  • ‘”Enhanced Customer Satisfaction”
  • “Reduced Customer Churn”
  • “Increased Revenue”
  • “Lower Costs” and create an environment of “Collaboration”
How Significant are Managing Your Customer Journeys?

The findings are not minuscule and in fact are very significant.  By improving the client journey experience, financial advisers can improve the following: Customer satisfaction by 20%, Fuel Revenue Growth through decreased churn, up-selling by 15%, Lower the Costs of Serve by as much as 20% 30% more engagement with your own organization (if you manage a multi-partner practice).

The Experience That Counts the Most: Take A Journey

McKinsey also analyzed the improvement to key performance metrics when businesses adopted Journey-Led Experiences.  You can also see below the statistics for  journey-led experiences versus regular touch-points.  As you can see there are very significant improvements to customer satisfaction, decreasing churn/desire to stay, improving referrals.

Screen Shot 2014-08-04 at 10.12.30 AM

How to Fuel Revenue Growth, Increase Customer Satisfaction and Lower Cost to Service Your Clients

What we can learn from McKinsey (for Planners/Advisors) is that creating a journey-led experience is a paradigm shift from traditional single touch points.  Instead the journey is a focus on end-to end journey and experience from the customers’ perspective.

Researchers talk about focusing on KEY journeys.

In looking at the entire customer journey or lifecycle, financial advisers need to look at what is the client journey.  Looking at the CFP website, it takes on the whole lifecycle.  By and large it’s in these 6 steps. Readers, you know this process well.  But how do you transfer your Customer Journey at each step of the Financial Planning Process?  And specifically, what are the common client pains and the common pains you have in your practice.

The main KEY journey where I hear the most pain from financial planners and their clients is in the implementation process.  The challenge I repeatedly here is this: I keep making multiple calls where I nag my clients to follow the actions/recommendations and I’m having spending so much time and energy doing it.

How to Apply McKinsey Research for Financial Planners during Implementation of Plans


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eugeneHow Do You Lower Costs to Service but Increase Quality?