CEO COLUMN
Living in the
Experience Economy !
BGAs must elevate the advisor experience in order to remain competitive .
Dan LaBert , CEO NAILBA DLaBert @ nailba . org
Per the NAILBA BGA Business Practices Report of 2020 , “ BGAs often aim to secure contracts with an advisor for the promise of processing business . When they have successfully secured an agreement to work with an advisor or insurance professional , it is important to recognize that this is the starting line of what will hopefully be a long race .
The most successful companies in today ’ s economy are building themselves around one single focus : creating an exceptional consumer experience , one that goes beyond just products and solutions , but connects to how people think and feel . Back in 1998 , the Harvard Business Journal coined the term “ Experience Economy ” in their article on how more people are spending money on experiences instead of commodities . The experience economy is defined as “ an economy in which many goods or services are sold by emphasizing the effect they can have on people ’ s lives .” Experiences are their own category , just like “ goods ” and “ services .”
Focus on three Rs
If you want to recruit , retain and / or renew trusted relationships , “ your value proposition is no longer about your people or your service – those things are expected . You need to provide and demonstrate an elevated advisor experience to not only stay in business , but grow your business . Elevating the advisor experience creates loyal advocates which drives further referrals and warm introductions to other advisors in their network .
The Great Resignation didn ’ t start with the pandemic in 2021 during which record numbers of employees voluntarily quit their jobs . Yes , COVID caused an unexpected disruption but it is more the continuation of a trend of rising quit / resignation rates that began more than a decade ago . Now , factor in these five Rs – retirement , relocation , reconsideration , reshuffling , and reluctance .
Spurred on by the pandemic , the Great Resignation was a natural consequence of retirement , relocation , reconsideration , reshuffling , and reluctance . The sooner BGAs understand which of these factors are impacting their advisor ( and staff ) relationships , the sooner they will benefit from understanding which of these factors are contributing to decrease in production and less advisor relationships .
Equity partner perspective Brian Haney , founder and Vice President of The Haney Company shared in the NAILBA BGA Business Practices Report of 2020 , “ BGAs must act and think like an equity partner . The advisor experience requires you to think like a relationship manager and equity partner in the advisor ’ s practice .”
BGAs are operating in both a traditional and digital world – acknowledging what has evolved in the financial services industry and investment advisory world and employing a more indepth discovery of the advisor ’ s specific business model and motivations to personalize and humanize their overall experience . It is time for BGAs to avoid leading with your firm ’ s features and attributes , and start focusing on the outcomes and benefits of your audience values . For more information on elevating the advisor experience and thinking like an equity partner , log-in to NAILBA . org and review the BGA Business Practices Report of 2020 .
4 Perspectives Q4 2022