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On the Long Road to Retirement, Checkpoints are Key

Short-term actions yield short-term effect. This is especially true in financial education, where a recent report from the Pension Research Council at The Wharton School found that programs that follow up with participants or that operate continuously are most effective.

Our financial lives aren’t static; they change throughout the retirement saving process.

It may be time to evolve past a one-and-done education strategy in favor of planning that’s both consistent and dynamic.

According to the study, financial education programs that included follow-ups delivered to employees around the age of 40 optimally enhance savings by close to 10 percent at the time of retirement. Assuming a retirement age of 67, employees who have been followed up with since age 40 will have logged nearly 30 years of personalized education by the time they retire. That adds up to a lot of opportunities for plan sponsors to continue to support employees by engaging through tactics that work best for the particularities of the demographic involved—whether through videos, print materials, live sessions or even podcasts.

To paraphrase an old political phrase about voting, “educate early, educate often.” An employee who planned to retire at 65 but didn’t save enough may be hard to reach, especially late in his career. Our previously mentioned well-served mid-career employee is bound to be more willing to listen and learn. The key takeaway you can impart to your clients is to establish enthusiasm and confidence in retirees at the outset of the planning process, then build a strategy based on this solid foundation.

Bridging the Retirement Conversation Gap

More education is good, but a consistent schedule of relevant follow-ups is even better. For example, companies might improve their enrollment protocol by offering a week of employee presentations and meetings instead of one afternoon. That’s an important step, but it still overlooks the fact that planning can take decades. Typically, conversations about retirement take place during two periods. The first discussion happens when the worker is first hired and probably covers plan details and enrollment policies. The second may not occur until the worker is near retirement, at which point it’s a little late to make adjustments.

To keep the lines of communication open and flowing, advisers can add value to their plan sponsor clients by helping them maintain an ongoing and varied dialogue with their plan participants. Consider staggering the delivery of materials so the recipient doesn’t feel overwhelmed, and craft a follow-up game plan to suit personality types, schedules and status (newly enrolled, on track, running behind, nearing retirement).

Following up with participants may also mean checking in on general financial concerns such as daily living costs and paying down debt. Perhaps they’d like to receive advice about overall financial wellness as well as retirement. Even if they’re not quite on track after receiving guidance, in many cases they’ll still feel better after a chat.

Another opportunity to add value may arise when participants who initially don’t qualify for a contribution matching program become eligible later on. Whether or not the matching policy is clearly articulated by the employer—and in a perfect world, it always would be—your clients can enhance their service model by staying on top of eligibility along with other details.

Retirement planning is a long road for everyone involved—advisers, plan sponsors and, of course, the retirees themselves. You might think about emphasizing the importance of follow-ups by comparing them to friendly inns along the way: they provide the perfect opportunity for all parties to reflect on how far they’ve come and prepare for the next stage of the journey.

Learn more about retirement strategies and solutions through Janus Henderson Investors’ Defined Contribution program.

Editor’s note: This blog post originally appeared on the Janus Henderson Blog here.

Ben Rizzuto

Ben Rizzuto, CRPS®, is a retirement director for Janus Henderson Investors. In his position Rizzuto works with financial advisers, platform partners, Janus Henderson colleagues and clients to find solutions for today’s increasingly difficult retirement issues, whether they be within retirement plans or for those clients that are trying to figure out how to retire on their own terms. He also contributes to the dialogue surrounding these issues as the host of the “Plan Talk” podcast and through periodic posts to the Janus Henderson Blog.


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5 Exclusive Tips To Maximize Customer Experience—The New Frontier

Beware the new reality: Marketing is no longer in control of your brand. Rather, customer experience (CX)—the actual experience your customers are having—is.

Because customer expectations are at their highest levels, CX has superseded customer service and branding to become a key driver of retention and acquisition. Consequently, a brand’s success hinges on creating personalized experiences and delivering them in an authentic manner that resonates with customers and makes them feel valued and appreciated.

Astute and innovative companies are swiftly diverting significant budgeted dollars from branding and marketing initiatives toward CX. In this new paradigm, customers dictate all aspects of their relationship with your brand, thanks to the ubiquitous mobile, social and web technologies. In the words of customer service expert Jack Mackey, “You can say what you want about who you are, but people believe what they experience.”

Gartner defines CX Management as “the practice of designing and reacting to customer interactions to meet or exceed customer expectations and, thus, increase customer satisfaction, loyalty and advocacy.” CX is the emotional representation of how your audience perceives your brand. It is about listening to your customers and acting accordingly. Delivering a successful CX is crucial for an adviser for the achievement of three key strategic goals: (1) Drive customer loyalty; (2) create brand evangelists who will promote your brand; and (3) attract and retain new assets.

Make CX Your Best Product Offering

When it comes to competing on CX, engagement is of paramount importance. Consequently, begin by making CX the best product your firm provides. Make your message memorable, entertaining and valuable, and leverage any available client data to extract maximum value from the interaction at any touch point of the sales journey.

To create a powerful and effective CX, you must ensure that your clients’ offline experience matches the online one. For the latter, the use of video is of paramount importance. Consumers’ thirst for video seems unquenchable and marketers are responding in kind. Video, far better than words, appeals to the visual and emotional part of a consumer’s brain, thereby facilitating a better and faster understanding. Most important, video establishes an emotional bond that even the best-written material cannot achieve. (For more details, read my InvestmentNews article, “Use Video to Connect with Clients.”)

Five Ways to Improve CX

Any CX must be able to deliver highly targeted and personalized messages to your audience at the correct touch point. I suggest five basic steps that advisers can take to create a meaningful and rewarding strategy that will help them improve client satisfaction, expand their book of business and increase revenue:

1.) Establish your vision

The easiest way to define your vision is to create a set of statements that act as guiding principles and that will drive the overall behavior of your organization. Every member of your team should know these principles by heart and they should be embedded into all areas of training and development.

2.) Become customer-centric

Put your customer first, and at the core of your business. Becoming customer-centric means you use any client data available to better understand your clients, and align your business growth strategies and policies with their needs. This is not only a sound business strategy but, as a Deloitte and Touche research pointed out, it also empowers a company to become up to 60 percent more profitable.

3.) Listen to the voice of customer (VOC)

The secret to attract and retain clients and assets is not fees or products, rather it is the CX that an adviser offers. Consequently, taking into account the voice of customer (VOC) is of crucial importance. VOC—a term coined by Abbie Griffin and John R. Hauser in an MIT Marketing Science paper—is the process of capturing client’s feedback to formulate a detailed understanding of their requirements. Customer feedback is an invaluable asset for an adviser. It provides crucial intelligence to gauge what works and what needs improvement. VOC allows you to leverage one of the skills clients value the most: your willingness to listen.

4.) Build an emotional connection

In the words of consultant Simon Sinek, “People don’t buy what you do, they buy why you do it.” Ergo, make emotional connections with your clients your competitive advantage! The best customer experiences are grounded in emotional connections. Scientific research confirms that emotions shape attitudes and drive decisions. Loyalty is directly correlated to a customer’s emotional attachment to a brand. According to an article titled “The New Science of Customer Emotions,” in Harvard Business Review, “When companies connect with customers’ emotions, the payoff can be huge.”

5.) Deliver omnichannel customer experiences

Clients are expecting from you the same level of multichannel engagement they receive from companies like Amazon and Zappos. To be effective, your omnichannel engagement must go beyond the mere distribution of information through different channels and match clients’ preferred means of communication. The line between online and offline engagement is blurring fast and consumers demand engagements that allow them to seamlessly switch channels or devices while interacting with your brand.

Consumers have developed high expectations as a result of interacting with brands that offer them a user-centric CX. Advisers should switch their focus from customer service to CX as a way to prove to their clients a genuine commitment to customer satisfaction. Allocating time and resources today to deliver an engaging and compelling CX will put advisers ahead of the curve and position them well to cash meaningful dividends for years to come.

Claudio Pannunzio

Claudio Pannunzio is the managing director of Cürex Group Holdings. He was formerly the president of i-Impact Group Inc. in Greenwich, Conn.


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Find Your WHY to WOW Your Clients

Why do clients do what they do? What makes them tick?

If you want to wow your clients, you have to understand this. However, the subtle art of delivering exceptional client experiences is as much about you as it is about them. Don’t believe me? Try this deceptively simple self-awareness exercise: for 24 hours, as you go about your daily tasks, ask yourself: “Why am I doing this?”

The tough part of the process is being honest. Don’t let yourself off the hook with answers like, “I’m making coffee because I need caffeine,” or “I’m driving to work because I need to get to the office.” Even for the most mundane action, there often exists a deeper motivation for the things you do, a motivation which I’ll call here your WHY.

Your WHY is your supreme mission. It’s the underlying element that leads to purpose beyond self. For your business, it also goes beyond just making money. When you act in service to your WHY, you feel fulfilled, energized and better prepared to create WOW moments, which Knowledge LabsTM defines as unexpected, thoughtful gestures that make clients realize you offer a level of service unique to them.

Can you tell when people you interact with are merely going through the motions? Well, your clients can tell that too.

WHY Gets You to WOW … But How?

Two examples that illustrate remarkable client experiences.

I have a friend and mentor who is a successful trial attorney. His WHY is to ensure that no one in Florida is treated the way his brother was treated by a major theme park corporation after a tragedy years ago. He intentionally tethers to that narrative daily, and as a consequence, his clients are systematically WOWed. The client experience his firm generates is second to none.

Or consider the adviser who took his wife and daughters to a Celine Dion concert in Chicago. “We’re here for the Celine concert,” piped up one of his daughters to a hotel employee. On the day of the show, a different employee knocked on the adviser’s door and asked if the family would like to join Ms. Dion privately as she warmed up on the hotel piano—with permission from the star, of course. From a WHY of bringing lifelong memories to their guests, a WOW was born.

Asking and answering WHY your team does what it does is a key to world-class client experiences and brand burnishing. Live out a sincere WHY, and your business will thrive. In an era of exclamatory texts and gushing social media posts, it’s the “sincere” part that’s key here. You don’t actually love everything and think everything is amazing, but by this point such superlatives have become habitual. It’s time for you—and your team—to focus on a WHY that is both real and actionable.

Three Steps to Discovering Your Team’s WHY

Find answers to the following:

1.) What makes your team unique?

2.) The hero in your WHY is not you. Who is it?

3.) Talk through your unique idea for WHY with five close friends who have your best interest at heart.

WHY leads to WOW, you watch.

Learn how the Art of WOW, can help you cultivate extreme loyalty among existing clients and grow your business.

Editor’s note: A version of this post appeared on the Janus Henderson Blog. See it here

John L. Evans.jpg

John L. Evans Jr., Ed.D., is executive director, Knowledge Labs™ Professional Development at Janus Henderson Investors. In this role, Dr. Evans works with the Professional Development Team and provides extensive consulting, training and practice management expertise. He is a sought-after expert and keynote speaker. He regularly contributes to The Orlando Sentinel newspaper on business and politics and is featured in the Advisor Center section of Barron’s magazine. Dr. Evans has authored books on client retention and client acquisition, including The Book of WOW and “A Genuine Persuasion System.” He also serves on the board of advisers for the James Madison Institute in Tallahassee, Florida, and Elevate USA in Denver, Colorado. Prior to joining the financial services industry, Dr. Evans was special assistant to former U.S. Senator Connie Mack and director of business development for the state of Florida’s No. 1 registered investment advisory firm, according to Wealth Manager Magazine, for 2007. Dr. Evans holds an MBA from the University of Miami and an Ed.D. in organizational leadership from Pepperdine University.