When Have You Done 'Enough' For Clients (And How Do You Know)?: Kitces & Carl Ep 139
May 30, 2024
auto_awesome
Client communication expert Carl Richards joins Michael Kitces in discussing the tipping point for financial advisors to shift from constant learning to focusing on providing value. They explore simplification in client services, the challenges of removing unnecessary services, and the importance of surveying clients to understand their needs for client retention.
Recognize the importance of balancing client needs without overwhelming them with excessive services.
Evaluate the effectiveness of services by understanding client engagement through utilization rates.
Deep dives
Understanding the Value You Offer Clients
The importance of recognizing when you are providing sufficient value to your clients, as highlighted in the podcast, revolves around knowing when to stop adding more and focusing on effectively communicating the existing value. Meg's query about reaching a point of adequacy rather than constant augmentation underlines the significance of balancing client needs without overwhelming them with excessive services. The podcast emphasizes the value of simplifying business practices and concentrating on ensuring clients fully comprehend the services provided, as opposed to continuously adding new offerings.
Utilization Rate and Effective Service Delivery
The concept of utilization rate, as discussed in the podcast, plays a crucial role in evaluating the effectiveness of services offered to clients. By understanding how clients engage with the services provided, advisors can optimize their offerings to align with client preferences and needs. Utilization rate acts as a key indicator for advisors to assess which services are truly valuable and which may need to be reevaluated or eliminated to enhance client satisfaction and service efficiency.
Continuous Learning and Finding the Right Balance
The podcast delves into the balance between continuous learning and recognizing one's current value. While ongoing learning is essential for personal growth and intellectual stimulation, it should not necessarily translate into constantly adding new elements to the business. Encouraging individuals to explore new knowledge areas outside their immediate business scope and considering what components can be streamlined or removed from services offered can lead to a more focused and efficient service delivery approach, ultimately enhancing client satisfaction and business effectiveness.
In our 139th episode of Kitces & Carl, Michael Kitces and client communication expert Carl Richards discuss how to know when you offer "enough" value to clients that it's no longer necessary to keep doing and learning more.