Kitces and Carl - Real Talk for Real Financial Advisors
How Do You Know When You Are Adding Value Versus Just Trying To Justify Your Fees?: Kitces & Carl Ep 155
Jan 9, 2025
The hosts explore how personal interests can influence client engagement. They tackle the challenge of distinguishing between adding value and merely justifying fees in a competitive landscape. The discussion highlights the importance of understanding client preferences versus advisors' assumptions. Effective communication and tailored services are key to enhancing client satisfaction. Additionally, they delve into the need for effective feedback mechanisms to eliminate unnecessary offerings and truly meet client needs.
37:08
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Quick takeaways
- Advisors should focus on understanding individual client preferences for engagement to tailor their services effectively and enhance satisfaction.
- Running experiments to assess the value of specific services can help advisors refine their offerings and eliminate unnecessary complexities.
Deep dives
Understanding Client Value Perception
Many financial advisors struggle with the challenge of delivering value to clients while justifying their fees. As the industry trends toward commoditization of core investment services, firms must find innovative ways to add value without disproportionately increasing their workload. Some advisors try to implement new services in an effort to prove their worth, but they often overlook whether clients genuinely desire these added features. This realization leads to the question of whether the enhancements provided are truly beneficial or merely ways for advisors to satisfy their own concerns about value perception.
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