Can you define your Client Value Proposition (CVP)? Is it memorable, consistent and valued?
What can you as a financial adviser learn about maximising the value and performance of your business from the incredible global success of McDonalds? What makes McDonalds different form the local hamburger take-away around the corner? Is there some success secret that applies to all business, and which determines whether the business is fated for great things or obscurity? Yes, there is, but first let’s make 4 observations about McDonalds:
- The majority of McDonalds outlets are run by youngsters who were employed with little or no fast-food experience. You will usually find the owner or a family member behind the counter of the local burger store with thousands of burgers to their name. McDonalds doesn’t rely on experienced staff.
- If you are a McDonalds patron, you are quite happy to eat at any outlet – the one closest to your home, the one closest to your work, the one at your holiday destination, or the one simply on the way to where you’re going. Many of us are wary about eating at an unknown fast-food outlet. McDonalds delivers a consistent product and service.
- Few burger outlets can compete with McDonalds on value. Note, not price, value! There are some cheaper alternatives out there, and of course more expensive. Arguably, there are a lot tastier offerings. However the success of the chain shows that most people are satisfied with what they get for the price paid. McDonalds has a successful CVP.
- What happens when the owner of the local burger outlet wants to move on – retire or find a new challenge? Usually the business is sold at the book value of its assets or simply liquidated and its assets sold off. The overwhelming majority of McDonalds outlets sell for a price well in excess of their asset value. Accountants call this additional value “goodwill”. The value of the business is not dependant on its owner or employees.
So what enables a business to be run with staff less experienced than the competition to successfully compete against the established local outlet, to compete against rivals selling bigger, tastier or cheaper products, and to allow the owner to exit and receive full value, plus a premium in many cases, for their business?
There is a secret behind their success! A Value Proposition driven by systems and processes. This secret is applicable to all business, financial planning included…
Systems and Processes – Delivering the “McPlanning” Experience
Offering value is not good enough. You need to deliver this value, and deliver consistently. The only way to do that is by creating systems and processes that ensure the consistency of the each business activity, for example:
- Responding to a new client enquiry
- Processing a business application
- Conducting a review meeting
- Consistent branding and client communication
Do your clients get the same experience each time they interact with your business? Is your CVP being consistently delivered? Or does it depend on who is available to meet with the client and what style they have? Is each transaction processed in the same way or does it depend on which staff member is doing it? Is there an over reliance on one or two key staff members? Do your clients ask for (expect) a specific staff member of your team?
Systems and processes address these concerns and create the McPlanning experience. Take a look at your practice. Do you have systems and processes to handle each business activity?
Ask us how we can help automate some of the systems and process in your business, even better book a 15 minute conversation HERE to find out more about automating a referral frame work and client communication ecosystem.
McPlanning…it’s about developing systems and process to consistently deliver your value proposition thereby allowing you to reap the rewards of a successful enterprise!