by teamrecI will start with a story which is possibly more than 100 years old that I read this morning which highlights the significance of knowing your clients.
Sir Arthur Conan Doyle, the creator of Sherlock Holmes, was impressed with the observational powers of a cab driver who picked him up at the train station after a vacation in the south of France. As Doyle stepped into the cab and put his suitcase on the seat next to him, the driver asked him: “Where would you like to go, Mr. Doyle?”
Doyle was surprised that the driver knew his name, and asked whether they had ever met before.
The driver said no, which prompted Doyle to ask how he knew who he was.
The driver replied: “This morning’s paper had a story about you being on vacation in Marseilles. This is the taxi stand where people who return from Marseilles always come to. Your skin color tells me that you have been on vacation. The ink spot on your right index finger suggests to me that you are a writer. Your clothing is very English, not French. Adding up all those pieces of information, I deduce that you are Sir Arthur Conan Doyle.
“That and your name is on your suitcase.”
Let me quote another example – Have you ever met someone whose name you can’t remember? It can be quite embarrassing, awkward and offensive as well. Now imagine an organization that can’t recognize or remember its clients!! This is now beyond the occasional loss of memory that most of us tend to experience.
According to a study by Bain & Co, where over 350 companies were surveyed, 80% claimed to be delivering a superior experience. But when the customers were surveyed, it transpired that only 8% of the organizations were delivering it.
Which essentially brings me to adage – If you keep on doing what you’ve always done, you’ll keep on getting what you’ve always got?
The markets in India have been witnessing a tumultuous phase over the last couple of years or so now. The pressures are being felt across board with brokers shelving their plans to pursue growth in an industry which seems to be the most impacted by the slowing economic growth, policy paralysis at the Centre, the Eurozone crisis, the depreciating currency, rising inflation, political scams etc. Optimism has been grounded only to be replaced by acute pessimism. Cost cutting, downsizing and caution seems to be the order of the day.
Is there a silver lining to all this? Is there really an opportunity amidst all this chaos and pessimism? Is it time that organizations took a harder look at their business model and the service delivery mechanism in order to bring value to their client proposition and deliver a superior experience?
All is not lost! It is just that there has been a shift in the operating environment. The dynamics of business have changed and it is imperative that organizations recognize the change and build their businesses accordingly. The profile of the investor has also undergone a major change from what it was even 5 years ago. With the increase in salary levels – new millionaires have been created. The depth of internet penetration has ensured that information is easily available at the click of a mouse. The average investor today is one who is more educated, well informed and undoubtedly richer. He now needs his investments to be spread out across different asset classes, advise which is well researched and transparency in our dealings towards him.
Knowing your clients is as important as knowing your product. There is little doubt that the client is paramount in our scheme of things and in all that we do. Yet he seems to be most neglected cog in the entire wheel. Knowing and understanding the customer is the overarching norm for all businesses but more so in the financial services domain. To build a successful business, the leadership has to take initiatives to know with precision the wants, aspirations and the investing behavior of their clients. Apart from that the overall clientele should be segmented in a manner which should reflect their incomes, marital status, number and age of their children, assets and liabilities and the appetite for risks. Companies who are in possession of this information about their customers can use the details to deliver customized solutions targeted at specific client segments thus making them not only successful but also extremely profitable. Products can be created and delivered at the right place and at the right prices.
It’s time to invest in the technology and the manpower to capture essential client details. This will enable companies to bring value to the entire proposition which can then be created centered around such details and requirements. Based on the client profiling, the execution platform and the service delivery mechanism can be so designed so as to customize the deliverables in a manner which is not only efficient but cost effective as well.
What should also be noted does that “knowing the clients” not only determines the design of our products but also the manner in which we reach out to them and how we service them. The younger and the more tech savvy clients can be reached out through the electronic medium, whereas the requirements of the older ones, who are probably technologically challenged as well, can be met at face to face meetings or over the phone. Companies can do well to understand and analyze the regular transactions and requirements and have them automated or moved to a self-help electronic platform. The more complex transactions can be addressed at the meetings. Knowing the clients also enables us to depute the right kind of manpower based on his talents and specific skill sets towards servicing the specific kind of clients. These measures will not only help save costs but also enable organizations to optimize manpower for relevant functions thus freeing up a lot of employee bandwidth which can then be devoted to more productive and revenue generating activities.
Must I say more? It has always been evident to all of us that thoroughly knowing and understanding our customers and delivering what they want is the ultimate key to success. In fact I also believe that most of us in the financial services space are cognizant of the fact that there is a currently huge gap between the expectations and the delivery. This is the next new opportunity that beckons us. This also explains as to why the smaller organizations have been less impacted by the current turmoil than the larger ones. In conclusion, whether our revenues are increasing, are flat or declining, we should, without fail, spend quality time understanding our clients to learn what’s on their minds and respond appropriately. Customer Service should not be a desk but an attitude that should be inculcated across the entire hierarchy of the organization.
ABOUT THE AUTHOR
With over two decades of rich experience Vikash Khandelwal is a thorough bred seasoned professional. His expertise lies in leading cross cultural Financial Services business including Equities, Commodities, Wealth Management, Insurance Broking and Distribution.
During his long successful professional career he has been associated with leading brands like Religare Enterprises Ltd & Anand Rathi in the BFSI Sector.
In his various leadership roles, he has been responsible for stabilizing operations, and expanding into newer geographies and business verticals. With an excellent track record of managing internal mergers and coordinating with regulatory authorities, Vikash is leader and strategist. He epitomizes an excellent entrepreneur who has proven his caliber by managing large teams and sizeable business operations.
During his career span, Vikash has worked in many challenging environments & has demonstrated the skills to manage technology led businesses enhance efficiency through change management programs and successfully drive new businesses through conceptualizing strategies.
A Chartered Accountant and a Cost Accountant by education, some of his key strengths are his strong business acumen, ability to identify business opportunities, drive business efficiently, strategize, streamline distribution networks and implement solutions with focus on bottom-line, process efficiency and cost optimization.
