Financial advisor value propositions: A value proposition is essential for financial advisor firms to clearly communicate what they offer their ideal clients yet creating one is often a confusing process that is greatly misunderstood.
Many financial firms either lack a value proposition or present it so that it’s hidden in their website or marketing materials and thus an opportunity is lost to focus on what they do best.
What is a Value Proposition?
It is a statement or collection of statements that call attention to a firm’s unique abilities AND it is presented from the client’s point of view helping them gain a benefit and/or solve a particular problem. It is often most effective when originating from a competitive advantage or unique skill that sets the firm apart.
A great value proposition answers the question “Why hire us?”
What Makes a Good Financial Advisor Value Proposition?
One way to look at an effective value proposition is to see if it meets three criteria:
- Pleasure-focused. Your value proposition focuses on how your services as a financial advisor help improve your clients’ lives.
- Specific. Your value proposition shouldn’t be vague. It should convey to your target clients what benefits you can provide them.
- Exclusive. Ideally, your value proposition should highlight what only you can offer to potential clients.
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What are Not Value Propositions?
Value propositions are understandably often mixed up with other types of statements. But it’s important to remember that they are different.
As most mix-ups occur here, it’s exceptionally important to note that value propositions are not brand positioning statements. A brand positioning statement is a one-line statement that encapsulates why your financial firm exists and for what you want people to remember your firm. It’s mostly a statement for internal use. On the other hand, a value proposition is customer-facing and describes your firm’s promise to deliver.
Aside from brand positioning statements, value propositions are also commonly confused with mission statements. Mission statements define what you do as a financial advisor. On the flip side, value propositions state why a client should desire of your services.
Value propositions also differ from slogans or taglines. Slogans are short and catchy statements that brands use to sell a specific product or service. Slogans and taglines are usually used in ads, while value propositions aren’t.
Aside from the previously mentioned mix-ups, it would also be best for you to note that value propositions are not:
- Tagline – a tagline or slogan is a short benefit statement and doesn’t have the strength or depth to convey a firm’s complete competitive advantage.
- Elevator speech – a 30 second commercial is used in a networking environment. It should be short, to the point, and give an example of the niche markets you serve.
- Self-described claims of great customer service
- A competitive analysis of your firm versus others in your field
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“Know what your customers want most and what your company does best. Focus on where those two meet.”
Kevin Stirtz
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Need Value Proposition Ideas?
***Read this list of 31 benefits CLIENTS ARE SEEKING from financial advisors
Financial Advisor Mistake Series
This Value Proposition blog post is part of a series I have written to help financial advisors navigate the process of growing their firms intentionally without making mistakes. In your early years it can be easy to make mistakes because the budget doesn’t accommodate working with an experienced coach like myself.
Here are the other mistakes in this series:
Mistake 1: Financial Advisors Lack a Target Market or Niche – Marketing to anyone and everyone creates a financial advisor generalist who is competing with all other advisors.
Mistake 2: Financial Advisors Should Avoid Template Websites– Many website development companies offered to the financial industry are not advantageous to advisors looking to grow through Digital or Inbound Marketing.
Mistake 4: No Business Networking Strategy – Advisors who don’t leave the office to attend business networking events often do not create COI relationships.
Mistake 5: Failing to Sell the Dream– Left-brained advisors forget to convey the importance of financial planning and wealth management in terms of the impact on clients’ lives and how they can live their dream retirement.
Mistake 6: Advisors Lack a Professional Brand – No custom brand, no differentiation from other firms. It’s as simple as that. See mistake 1 which is the most important mistake financial advisors make.
Mistake 7: Failing to Sell Your Value– In your financial planning practice, how many times have you helped clients make essential decisions that have earned considerable income or saved clients from making fatal investment mistakes?
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Why Do I Need a Good Value Proposition?
As a financial advisor, you need a well-written value proposition. If your value proposition is lacking, it will be unable to convince your clients that your service is valuable and is worth spending money on.
What Are Examples of Good Value Propositions?
Subaru
For one of Subaru’s latest offerings, they clearly laid out their value proposition on their website: “the most adventurous, most reliable, safest, best Subaru Outback ever.”
In this case, Subaru’s value proposition makes it clear that it takes drivers on adventures without foregoing safety.
Subaru knew that its target customers use their Outback Subaru for outdoor adventures. So, they focused their value proposition on this idea.
HubSpot
HubSpot, the developer of a customer relationship management (CRM) system, settled on the following value proposition for their CRM: “an easy-to-use CRM.”
HubSpot understands that many businesses can benefit from using a CRM. They also understand that most other CRMs out there are complicated to use – especially for those who aren’t tech-savvy. So, HubSpot’s value proposition targets customers who are looking for a CRM that prides itself on its ease of use.
FedEx
Popular delivery service FedEx used the value proposition “manage your home deliveries.” It’s short, simple, and gets the message across.
For business owners who sell products, packaging and shipping products is likely a significant part of their operations. It’s also one of the most time-consuming and inconvenient parts of their workflow. FedEx knows that this is the struggle their target customers face. So, it went on to create a value proposition highlighting how FedEx’s services can make managing deliveries much easier.
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How Should Financial Advisors Establish a Value Proposition?
Financial advisors are not natural marketers, which works against them in crafting their true value. However, you can’t go wrong if you focus on your clients. Here are a few pointers to help establish a strong value proposition:
1.Use Your Clients’ Language
In practice, you can use your clients’ language by interviewing or surveying your current clients to better understand how they would describe you, your services as a financial advisor, and how you’ve impacted their lives. You’d then note down words and phrases that your clients use often. Finally, you’d integrate your clients’ language into your value proposition. It’s one of the best ways of making future clients think “this is the financial advisor I want to work with.”
2.Clarify Your Price Point
Take time to understand how your pricing differs in relation to your competitors. Doing so will help you find out whether you’re offering a value service, a typical service, or a premium service. In turn, your value proposition will better convey to your customers that they are getting their money’s worth.
3.Target Market Needs
A specific niche (Target Market) may require solutions that are unique. For example, divorced women often go in search of a new advisor after their divorce is final. Having a page on your website that goes into detail about women’s challenges can go a long way towards establishing trust.
4.Focus on Benefits Instead of Hype
If you use hype in your value proposition, your clients may not believe you. Value propositions like “world’s best coffee” are difficult for people to believe. So, instead of using hype, focus on concrete benefits and the value your service delivers.
If you want to use hype, combine it with the distinct benefits of your service, similar to what Subaru did in the example earlier.
5.Focus on Clarity Before Creativity
It should go without saying that your value proposition must be clear. It’s only once your value proposition clearly states the benefits your clients will gain from working with you should you move on to optimizing your value proposition for creativity.
To evaluate the clarity of your value proposition, make sure it answers the following questions:
- What service are you selling?
- Who should avail of your service?
- How will buying your service improve the life of your clients?
- Why should clients work with you instead of your competitors?
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What Is the Structure of a Good Value Proposition?
Value propositions that stand out and do their job often use a specific structure.
A good value proposition makes use of a powerful and clear headline that communicates to your clients how they’ll benefit from working with you. This headline is typically a single memorable sentence.
Often – but not always – a sub-headline will accompany your main headline. This sub-headline briefly expands on the delivered value you’re promising your clients and may provide an example of why your services are better than that of other financial advisors. This sub-headline is often between two and three sentences in length.
This main-headline-with-sub-headline structure allows potential clients to take in the value proposition quickly and understand why they should work with you.
Finally, it’s worth noting that value propositions work best when presented visually. You may not realize it, but images can be an important part of the value proposition because they lend an aura of promise in your branding and they offer a huge subconscious decision-making factor
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Where Should You Display Your Value Proposition?
After your welcome message, your financial advisor value proposition is the next most important message on your homepage.
Your website is the “new marketing brochure” and is very effective at showing value. Don’t hide your strengths in your website text or on your “about” page. Actually come out and say what you do best and say it with conviction.
Studies show that website visitors hunt for facts online and often ignore marketing hype or sales language. Eyes are attracted to numbers, specifically numerals, in web copy. Stating explicitly what makes you different will help to get your point across.
For example, stating, “Here are 5 reasons our clients work with us” and numbering the list will be far more effective than simply stating “who we are, who we work with, and what we do.”
Since online visitors scan content and search for facts, listing out your competitive advantage will not only call attention to it, it will be easier to read. A numbered list is likely to be read because the eye is drawn to it.
The best financial advisor value propositions are focused on what the client wants:
After your welcome message, your VP is the next most important message on your homepage.
Your website is the “new marketing brochure” and is very effective at showing value. Don’t hide your strengths in your website text or on your “about” page. Actually come out and say what you do best and say it with conviction.
Studies show that website visitors hunt for facts online and often ignore marketing hype or sales language. Eyes are attracted to numbers, specifically numerals, in web copy. Stating explicitly what makes you different will help to get your point across.
For example, stating, “Here are 5 reasons our clients work with us” and numbering the list will be far more effective than simply stating “who we are, who we work with, and what we do.”
Since online visitors scan content and search for facts, listing out your competitive advantage will not only call attention to it, it will be easier to read. A numbered list is likely to be read because the eye is drawn to it:
1.
2.
3.
4.
5.
Not sure what makes you different or better? Ask your clients! Ask them “What problem do we solve better than other firms?” Ask why they chose you and what was the defining characteristic.
Getting clear on the value you provide your ideal clients can be one of the best ways to “sell” your services and by breaking it down into a numbered list you can make the information stand out on your website.
Call attention to your Value Proposition on your website
What Should Your Next Steps Be?
With all the information we’ve discussed in this article, you should now be ready to create your own value proposition and implement it as part of your financial advisory firm’s marketing campaign. But it’s important to note that writing your value proposition isn’t a set-and-forget type of thing. You’ll need to revisit your value proposition every so often.
The best value propositions evolve along with your clients and the overall market. Instead of making assumptions about your clients today based on their past needs, you’ll need to continuously adjust to the pain points of your clients in the present.
Final Thoughts
Not sure what makes you different or better? Ask your clients! Ask them “What problem do we solve better than other firms?” Ask why they chose you and what was the defining characteristic.
Getting clear on the value you provide your ideal clients can be one of the best ways to “sell” your services and by breaking it down into a numbered list you can make the information stand out on your website.
