Top Challenges Financial Providers Face & Questions to Help You Address the Cause
There are common challenges faced by financial professionals across all sectors – financial educators, coaches, advisors, real estate & mortgage professionals, insurance, tax accountants, banks & credit unions, content developers (podcasters, bloggers), etc.
These challenges have direct impact on our ability to build brand value, acquire clients, build client loyalty, and achieve a positive reputation in our communities. We hope this article will help you identify these issues and understand their root causes, so you can address this problem in your business planning.
Challenge 1: Lack Brand Features and Unique Value Proposition that Differentiate You from Competitors & FinTech Options
Impact
Those who lack a clear unique value proposition are missing out on potential clients who end up going with other financial professionals or FinTech solutions.
Root Cause
All financial services offer similar products – so your brand and USP are not differentiated enough to stand out from competition. Many financial service providers’ brands are focused on logo and color scheme instead of purpose, values, and personality – the essential elements you need to distinguish yourself from the competition and attract clients who share your purpose.
Questions
What is your purpose? On what values are your company built?
What features of your brand or USP makes you stand out from the competition?
Why should someone hire you versus hiring your competition or using a FinTech app?
Challenge 2: Lack Awareness Among Your Target Audience on Broad Community Scale
Impact
Too few people know about your services to allow you to grow at the pace you desire. This leads to decreased chances for building relationships, fewer potential leads, and a lower number of people with potential to convert to clients.
Root Cause
Lacking a cohesive marketing plan that reaches potential clients via multiple channels with clear messaging limits your exposure, leads, and prospects. This problem usually is caused by lack of time to execute, no dedicated expert to lead the campaigns, or not having funds to execute a high-level marketing campaign.
Questions
Do you have a fully integrated marketing campaign across a broad scope of media?
Does your team include professionals with expertise in marketing, advertising, PR, social media, outreach, and promotions?
Do you track data to understand your Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLV)?
Challenge 3: You are not There at the Time When a Potential Client Needs You
Impact
You miss out on potential clients who need a solution you offer because you reach them too soon before they need or can qualify for your service. Or you reach them too late, after they have found another solution offered by competitors.
Root Cause
Failing to nurture long-term relationships with people who may be at a different life stage or under-qualified for the services you offer causes you to miss opportunities. Clients engage you when the time is right for them – so being there when a potential client needs you is essential to maximize acquisition.
Questions
What do you do with leads who don’t qualify for or need your service now?
How do you automate messaging for people who may not qualify for your service now or may not need it currently?
What check-in systems do you have in place to ensure that you are reaching people at a time when they need your services?
Challenge 4: Limited Community Relationships and Leadership Positioning Within Your Network
Impact
Having a smaller network of potential clients, partners, or referrers will limit how fast you can scale your business. Lacking a third-party referrer can also affect the time it takes to close clients and the steps you must go through to prove your expertise.
Root Cause
The main reason why people do not connect with community members (influencers, community leaders) is that they lack reasons to connect with them and have nothing to offer that will put them in leadership positioning. Lack of time to develop and nurture relationships is another factor.
Questions
How do you build relationships with community leaders and influencers now?
What reasons do you have to communicate with your community?
Are you positioned as a leader when developing these relationships?
Challenge 5: Not Being Your Clients’ Primary Financial Relationship or in Position to Quarterback Your Clients’ Financial Teams
Impact
Your clients turn to other financial services providers to make up their advisor teams and consider them more trusted sources of information. Your clients’ other financial team members lead them to decisions that could have an impact on the services you provide.
Root Cause
Lacking reasons to establish relationships with your clients’ teams and not being in a leadership position to help clients make financial decisions. Not having systems or protocols to develop these professional relationships.
Questions
Do you have systems in place that put you in position to lead your clients’ team members?
What do you communicate with your clients’ other financial service team members?
How do you establish trust with your clients so they consider you their primary financial relationship?
Challenge 6: Limited Affiliation with Social Impact Causes that Help Your Community Improve Financial Wellness
Impact
Americans want to do business with companies that share similar values: 84.3% of people agree that they are more inclined to be loyal to a brand whose values align with theirs. Financial service providers who lack a social cause will miss out on clients and brand enhancement opportunities and face greater challenges to retain clients.
Root Cause
Building a financial service practice takes time and many in the space fail to give back until later in their lives because they don’t know the benefits of integrating social causes into their business plan now. Lacking a clear vision on legacy and time commitments and failing to leverage expertise to serve the community are all common reasons why people do not participate in social causes.
Questions
How do you align with your clients’ values in your current business model?
What personal causes do you support and give your active participation?
When you affiliate your brand with a cause people support, how do you think it will help you win these clients or deepen your relationships with them?
