Why when a client wants to talk about price, the conversation needs to be reframed to experience and value

At a recent event, I overheard two financial advisers talking about how they felt they were doing more for less for their clients, and whilst I was only listening with half an ear, it turned out to be something of a local price war conversation. A race to the bottom.

Those of you who know me, know I have a strong background in dentistry in the UK (my husband is one) and a view that dental practices are very similar to adviser firms. Their goodwill and brand are often centred around a few key, highly qualified individuals who often overstretch themselves trying to do everything from their core role of clinician to client relationship management to practice manager, repair man, bookkeeper.....

The conversation at the adviser event reminded me of an interaction I was party to at one of our practices. A patient walked in needing an implant. He had done his research and clearly wanted to talk price.

Patient: How much for the implant doc?

Dentist: Firstly know that when I commence treatment there will be no hidden costs, everything to do with this treatment plan is included no matter how many times you need to come to the surgery. My treatment coordinator will personally look after you start to finish and handle all your non clinical questions. My success rate is over 98% versus the industry norm of......

Patient: Yeah, Yeah doc, how much?

Dentist: Due to the location of the implant and the fact that you'll need grafting surgery it will require an investment of ￡2 500.

Patient: What? Dr Shah down the road is less than two grand, can't you move a bit?

Dentist: I'm sorry, I won't reduce my price for two reasons: It's not fair to all the people who do pay properly for my services and secondly, much as I'll try not to, I will treat you differently and subconsciously not offer you the experience that every patient at this practice deserves.

The patient went to a competitor and nobody lost any sleep about it. He wasn’t our kind of patient and never would have been. He was from the ‘price tribe’ and our patients were part of the ‘experience tribe’. My staff used to live and die by the mantra:

Experience - Expectation = Delight or Frustration

Deliver a greater experience than the expectation and the client is delighted with the difference being the perceived added value they’re getting, the alternative is frustration. 

When talking with advisers, it seems their situation is no different. So, what makes for a great experience?

·       Empowering a specialist client relationship builder or as I prefer to say, a Financial Planning Coordinator, whose primary role is to emotionally connect with the client to facilitate the financial planning process, lightening the load on the adviser while ensuring ongoing personal attention to the client.

·       An engaging adviser who understands his or her clients’ anxieties and explores possibilities, wants and needs before catering accordingly. 

·       Everyone in your firm singing from the same client-centric hymn sheet.

·       Being transparent and consistent about wanting to build a book of 'clients like you' from the ‘experience tribe’. Ask for testimonials and referrals.

·       Engaging with your clients with lots of value adds, newsletters, blogs, vlogs, podcasts, market views, global best practices and insights.

·       Proactively anticipating your clients’ individual questions and needs for example, around the recent budget.

·       Regular gatherings to talk about hot topics such as offshore investing or cryptocurrencies.

·       All underpinned by a believable, reputable, authentic identity.

It's very easy to get caught up in the race to the bottom but as the master of marketing, Seth Godin, so brilliantly articulates in his book Tribes (and frequently rammed home by my Dental Business Coach, Chris Barrow), there are increasingly two types of tribes: the lowest price tribe and the best experience tribe. Both consider the following mere hygiene factors:

·       That you are experienced…

·       That you offer a decent product range…

·       That your modelling tool works…

·       That you have the required qualifications...

·       That you may have won awards...

The lowest price tribe take it as a given you can do the job, they just want the lowest price. “Cheap” is your message.

The experience tribe takes it as a given that you can do the job, they want to know that you have made a difference to people like them. “The place for people like you” is your message.

The magic happens when your existing clients say, “People like US go to places like THIS”. The best experience tribe, heave a sigh of relief, book an appointment and are DELIGHTED.