Client Value

Greg Hansen

Enterprise121

November 22, 2006

Enzyme philosophy

Client Irritants

Enzyme client value discovery research – March 2004

2. Lack of simple, relevant & honest communication2. Lack of simple, relevant & honest communication

3. Poor accessibility, service & follow up 3. Poor accessibility, service & follow up

1. You don’t know me, value me & reward my loyalty1. You don’t know me, value me & reward my loyalty

4. Not acting in my best interests4. Not acting in my best interests

5. Investment returns not to expectation5. Investment returns not to expectation

6. Product range & services inflexible & limited6. Product range & services inflexible & limited

7. Poor breadth & depth of planner knowledge7. Poor breadth & depth of planner knowledge

Agenda

1. Irritations

2. The Big Picture

3. Client value

4. Negotiating your value – 4 elements

5. Questions

The Big Picture

“Materialism is the dominant characteristic or our era. Our descendants will look back on the last part of the 20th century and the early part of the 21st as the Age of Materialism.”

Ross Gittins

Credit and charge card statistics

Date Transactions Accruing Interest Total

Sept 86 799 3095

Sept 96 2468 7034

Sept 01 7330 16755

Sept 06 15371 26514 37176

Source: Reserve Bank of Australia

Issues

1. Increase in the competitive environment

2. Commoditisation and misunderstanding of elements of financial planning

3. Increasing trend (and industry pressure) to fee for service

4. Increased pressure on margins, profits, market growth and costs

Client Value

Do we provide value?

Client Value

Enzyme client value discovery research – March 2004

2. Personal client relationship with my interest at heart2. Personal client relationship with my interest at heart

3. Honesty, trust and integrity 3. Honesty, trust and integrity

1. Consistently positive performance net of expenses1. Consistently positive performance net of expenses

4. Planner reliability and competence4. Planner reliability and competence

5. Full range of related advisory services5. Full range of related advisory services

6. Proactive personalised communication6. Proactive personalised communication

7. Flexible products with no penalties7. Flexible products with no penalties

Outcomes

• Economic value

• Transformative value

• Psychological value

The Advice Value Hierarchy

Life enhancement

Smart with money

Results and rewards

Guidance on the journey

Clear plan of action in place

Affairs organised and co-ordinated

Client Irritants

Enzyme client value discovery research – March 2004

2. Lack of simple, relevant & honest communication2. Lack of simple, relevant & honest communication

3. Poor accessibility, service & follow up 3. Poor accessibility, service & follow up

1. You don’t know me, value me & reward my loyalty1. You don’t know me, value me & reward my loyalty

4. Not acting in my best interests4. Not acting in my best interests

5. Investment returns not to expectation5. Investment returns not to expectation

6. Product range & services inflexible & limited6. Product range & services inflexible & limited

7. Poor breadth & depth of planner knowledge7. Poor breadth & depth of planner knowledge

Client Value

Enzyme client value discovery research – March 2004

2. Personal client relationship with my interest at heart2. Personal client relationship with my interest at heart

3. Honesty, trust and integrity 3. Honesty, trust and integrity

1. Consistently positive performance net of expenses1. Consistently positive performance net of expenses

4. Planner reliability and competence4. Planner reliability and competence

5. Full range of related advisory services5. Full range of related advisory services

6. Proactive personalised communication6. Proactive personalised communication

7. Flexible products with no penalties7. Flexible products with no penalties

Relationship

Relationship

• Empathy

• Likeability

• Trust

Advice quality

Advice quality• Relevance

• Comprehensiveness

• Efficiency

Client Irritants

Enzyme client value discovery research – March 2004

2. Lack of simple, relevant & honest communication2. Lack of simple, relevant & honest communication

3. Poor accessibility, service & follow up 3. Poor accessibility, service & follow up

1. You don’t know me, value me & reward my loyalty1. You don’t know me, value me & reward my loyalty

4. Not acting in my best interests4. Not acting in my best interests

5. Investment returns not to expectation5. Investment returns not to expectation

6. Product range & services inflexible & limited6. Product range & services inflexible & limited

7. Poor breadth & depth of planner knowledge7. Poor breadth & depth of planner knowledge

Client Value

Enzyme client value discovery research – March 2004

2. Personal client relationship with my interest at heart2. Personal client relationship with my interest at heart

3. Honesty, trust and integrity 3. Honesty, trust and integrity

1. Consistently positive performance net of expenses1. Consistently positive performance net of expenses

4. Planner reliability and competence4. Planner reliability and competence

5. Full range of related advisory services5. Full range of related advisory services

6. Proactive personalised communication6. Proactive personalised communication

7. Flexible products with no penalties7. Flexible products with no penalties

Service quality

Service quality

• Accessibility

• Responsiveness

• Ease of doing business

Client Value

Outcomes• Economic value

• Psychological value

• Transformative value

Relationship• Empathy

• Likeability

• Trust

Advice quality• Relevance

• Comprehensiveness

• Efficiency

Service quality• Accessibility

• Responsiveness

• Ease of doing business

Client Value

“Make a difference to the lives of our clients by

transforming their situation through financial leadership”