Redesigning advisers into 'choice architects'

If it takes an adviser six weeks to respond to a clients request for an appointment then the adviser is showing contempt for their own business,and moreover the client. It makes you wonder how they treat their existing clients, and is it any surprise that the industry apparently has a perception problem.

What is choice? Is it choice of practitioner who provides a personal service or is it choice of product? Market information claims that 80% of practitioners are "owned" by large institutions who provide products. Where is the choice there? Asset allocation is not choice. Cash, shares and property are the basic investment choices.

Ive only ever operated as fee for service & its not surprising that Australians have no idea of what advice costs.Advice as a service orientated product is intangible and difficult for clients to assess before they receive the advice.Quality cues in the engagement process can improve the client's understanding of the quality nature of your advice upfront.Our new clients pay 50% of their initial plan fee upfront & then once we have delivered the initial plan- they have 7 days to decide whether to pay the remainder and begin a relationship with us.This helps remove the risk for clients and means they can properly assess the advice before completing full payment. Until the whole industry is dragged into a fee for service environment and not one where loss leader templated plans are offered at little or no cost to consumers only to recoup all costs by commission after the plan is implemented-Australians won't have the ability to properly compare the cost of initial advice between advice firms.

"they have 7 days to decide whether to pay the remainder and begin a relationship with us." - That's a great idea. The seven-day or your money back is a guarantee that consumers expect from other products so why not in advice. Most important of all is that it is a sign of goodwill. All the best for your business. "Cash, shares and property are the basic investment choices." - so true. if advisers can get the message across that they can help the public in making the right choices in those three core choices, then there's hope yet for advice for the masses. * six-week turnaround = a big ask given people expect response these days in a millisecond.