FROM THE TACTICAL TO PRACTICAL- The True Meaning of Value

Michael parked the car, and he and his wife struggled to get their bags and the children up to the room, only to find that the beds weren't ready. It was now 11 p.m. and Michael had an early meeting scheduled for the next morning, so he placed an advance room service order for breakfast. He was encouraged when breakfast was delivered on time, but they forgot Michael's breakfast and most of the silverware. Now he had to make a choice between finding something to eat or getting to his meeting on time.

Then when it was time to leave, Michael had to carry all the family's bags down himself. As he passed through the lobby, he spotted three bellmen standing around talking to each other. Michael drove the car up to pick up his family and the luggage and went back to the desk to check out. Once again, there was no one there. The three bellmen were still talking to each other 10 minutes later when someone finally showed up to check Michael out. Even though the hotel was visually appealing and advertised all the amenities anyone could want, they were of little or no value to Michael.

Consider this concept of value from the perspective of an investor. Instead of concentrating on cloning your ideal client or adding to your list of products or capabilities, first take the time to find out what kind of experience the investor values. It's in their experience that you find the real juice–and probably the definition of value.

Making the Switch

How do you convert from an activity-oriented to value-oriented practice?

Sit down with your clients, and define their idea of a successful outcome. Then get agreement up front on what the outcome is worth to them–both quantitatively and qualitatively. And, most important, establish your direct contribution to that outcome. This is where a written Investment Policy Statement can be used to get agreement up front on the process that will be used to reach the outcome. As long as you demonstrate you are adhering to that process, the issue of activities is no longer the benchmark. The client focuses on the process.

Some prospects aren't interested in value; they're only interested in activities and costs. These are not the clients you want. Let them stay with their brokerage relationships. You should concentrate on transforming your marketing effort from one of pursuit (based on your track record or number of activities/products you offer) to one of attraction based on value. This means you need to take the time to connect your value with your marketing message.

Examine how you communicate your value and skills. Write out what you do step by step, as if you were explaining how to change a tire. Delineate how you invest money, structure assets, educate families, insure business risks, and plan for succession. Explain the solutions offered by estate planning.

Connect your value with your message. Instead of figuring out how to reach as many people as possible with your services or ideas, put that energy into communicating your message–making sure that it doesn't go in one ear and out the other. You want your message to make an impact, and to stick in your client's memory.

Build personal experiences into your messages. The next time you're sitting in your office and are about to tell a prospect why they should hire you, try relating a story that shows why. You can find stories everywhere. The best ones often come from family members.

My example comes from the day my dad retired. After 30 years of hard work, two wars, and many personal sacrifices, he handed my mother a pension check for $400. "This is it?" she cried. She actually pulled on the check in an attempt to make it stretch. "This is what they expect us to live on?"

Tears filled her eyes as if she had suddenly realized an irreversible mistake. My dad hung his head, dropped his shoulders, and walked out of the kitchen. I felt her pain and his bitter disappointment, but at the time I didn't understand there was anything they could have done differently to prevent this scene in the first place.

My dad had trusted the system, depended on someone else's plan for his retirement, and ended up working as a security guard at K-mart until the day he died. I supplemented my parents' income as well, but they had never learned how to invest, and the consequences followed them for the rest of their lives.

When it comes to making a point, nothing beats a personal story.

Larry Chambers spent 10 years as a broker before becoming an author and founder of Credibility Marketing, which helps clients attract rather than pursue clients. He can be reached through www.competitiveforce.com.