I think we’re going to share with you something that you can share with a number of the advisors as well, you’ll learn this from me is I’m really simple, and I think the simpler we keep it, the easier it is to execute. So you’ll never hear me in an MBA class and things like this. So we talk about this idea of just the ABCs or ABCDs, and we just segment our clients based on a number of factors.
And we do this with fund management business. We do this with all organizations. And I’ll admit this, we have very complicated models as well, but this is where I’d start. Your A’s are, put simply, those who give you the most revenue, but also potentially could give you the most referrals or have the highest growth opportunity within that. Whereas often we just work on, you gave me $10,000, so I’ll give you more time, and that doesn’t always work that way. So it’s that idea of you gave me $2,000, but I also know that you know 20-
Thinking about the future a little bit.
100%. And so that’s a piece there is segmentation. B’s, next level, C’s, next level. And then put down what does a servicing rhythm look like for each of those segments? Now if you add that up, say I want six to eight visits with these people, I want four to six here, one to two here, and it adds up to more meetings than you can have in a year, your business can’t run. Put simply, I had someone come to me, he had a gym and he wanted me to invest in it. He says, “I need capital.” “Why?” “Well, we’ve got no more members we can fit in and we’re losing money.” Said, “Well, shut down. You’re the last business I put down to.” You’ve got to make sure that if you don’t have enough time to be seeing these people effectively and focus on growth and innovation, then you need to find a way to cut that down. So that’s where we explore how does technology, how does systems and processes, just because you’ve always had a one hour, three monthly catch up with them in person, doesn’t mean that’s the best outcome for them.
And I might finally touch on, we did a think tank in a couple of states, I got sort of asked to do this, and I facilitated with a dozen advisors across three states. And I’ll tell you what, the challenges that advisors have had to face in the last five years, when you throw COVID into regulation. And what they’re being asked to do is exceptionally challenging to run a business. But I would then double down on this is why it’s more and more critical to get that client servicing rhythm right, why it’s core critical to get an operating rhythm where growth and innovation becomes just part of your day-to-day and starting to look, how will my business look three years from now? How do we be as effective as possible?
So we’ll share that around, but I think that idea of ensuring that the contact with your clients matches the outcome you’re going to be able to get. And I say this to even investment advisors who say, “Oh, I don’t want a small client.” Well, a small client who fits into a really good model, that’s really happy to be seen once a year, is a really high hourly rate. Your mid-client that you’re seeing eight times a year or 12 times a year, that’s the unprofitable one. So you’ve got to find a way to sort of streamline that. So that’s something I really encourage advisors to look at.
And this is something that can be done with baby steps too. I mean, for, as you say, a more simplistic way of doing it, often that can be the starting point and you can ramp it up from there.
Of course. And there’s so much technology now, we run so much of our internal, to all our users and subscribers on our platform, that’s all run now through digital marketing software. So we’ll send them a nudge, have you seen a negotiation and a 30-second clip, and we know who’s opened, who hasn’t. And those that haven’t opened, they get a second nudge towards something else, where those who’ve opened and done no action, they get a different nudge. Those who’ve opened and taken an action, they get a different nudge, like a recognition nudge. And so that can be just set-up, we don’t have to touch it again. So it’s a day of work, which no one has a spare day, but put a day aside and build it, and then you don’t have to do anything for six more months. And I think that’s the piece where we really encourage you to focus on innovation, focus on how you can leverage tech.
Probably going to a bit too far into this, but I’ll finish with this, is often we facilitate strategies often for big organizations, whole organizations, but also the small business, which you said, with two staff. And they say, “This year we’re going to be more strategic.” “Great. So show me in you’re operating rhythm and where you’re putting time aside for strategy.” “Oh, we don’t have time.” “Cool. So rule out being more strategic.” “We’re going to be more innovative.” “Show me your innovation time.” “Oh, we haven’t had any time.” “Cool. Let’s rule out innovation.” And it’s that piece of what gets measured gets done, and we need to prioritize these things in our business. So we look in a year from now how we want the business to look.