During his 1992 presidential campaign, Bill Clinton used the slogan, “It’s the economy, stupid”, to drive home the significance of the vital link between fiscal prowess and political success.
What he and his campaigners were highlighting was the fact that people want a balanced economy which seeks to serve the best interests of the majority.
Politically, people come in all shapes and sizes, and successful governments will seek to implement policies that meet the needs of the rich, the poor, and as many people in between as possible.
In financial services we face the same challenge, tailoring the advice and the products we recommend to suit the unique needs of the individuals we seek to serve. In this context too, we strive to serve the majority, but in reality no one product can be all things to all people – and to suggest that would indeed be stupid.
Clients need products that are both appropriate and affordable, products that are as good as they can be for the money available, products that represent value – that’s the real key to success.
When it comes to buying home insurance (as with many things in life) there’s the perception that ‘you get what you pay for’ – the higher the price tag, the better the quality of cover.
Now it is true that many of the comprehensive policies will typically cost more, and in return you may well get lower excesses, higher claim limits, fewer exclusions, and additional levels of protection such as accidental damage. But it’s also true that, on occasion, they include types and levels of cover that are way beyond the requirements of the client.
Let’s be honest here – not everyone believes in, nor perceives the need for, ‘gold standard’ cover, and indeed many people simply can’t afford it. What are the less affluent to do? And what if you, the adviser, are up against a client who uses one of the price-driven comparison sites? You need to be able to ‘fight fire with fire’.
What you need at your fingertips is the widest possible choice of products. You need the ability to match policies to clients, thereby showing your true expertise, and your sensitivity to all aspects of their circumstances. Clients want choice and there’s a suitable product out there for everyone, it’s just not the same one.
In the war of price versus cover, you are the peacemaker, and with so many options to choose from, the customer will be the winner. If you deliver real value every time, they will keep coming back to you. It’s not so stupid really.
Geoff Hall is managing director at Berkeley Alexander
