In the dynamic landscape of financial advisory, success hinges not just on technical knowledge but on how that knowledge is used to deliver value to clients effectively and strategically position oneself in the market.

Mafteem Farshad Abdul Khamid, a five-year MDRT member from Singapore, uses a formula of knowledge, value and positioning to differentiate his approach. Forming the cornerstone of his practice, this technique has proven instrumental in achieving greater success for his career.

He breaks down how these three aspects are integrated into the core of his practice.

1. Knowledge

Knowledge forms the foundation of Mafteem’s practice. This includes not just in-depth understanding of financial products and markets, but also client needs, regulatory environments and industry trends. He utilizes several strategies to effectively communicate the value of knowledge to his clients:

Education and empowerment: "I prioritize educating my clients about financial principles, market dynamics and the implications of different strategies," says Mafteem. This education goes beyond basic terminology. Mafteem utilizes clear examples and situational-based case studies relevant to a client's specific situation, empowering them to make informed decisions and feel a sense of control over their financial future. For instance, he might share best practices from existing clients who are newly married to a prospective client who is in a similar stage of life, providing relatable and actionable insights on how to achieve their financial goals.

Customized insights: Mafteem also tailors his advice based on comprehensive analysis, ensuring clients receive personalized solutions aligned with their specific goals and risk tolerance. This analysis goes beyond traditional financial statements, and he may consider factors like the client's family structure, career goals and even risk-taking personality to create a truly individualized plan.

Clear communication: He avoids jargon and opts for simple terms where possible when explaining complex concepts. “For example, instead of saying 'premiums' which might not be easily understood by everyone, I use the word 'cost’,” Mafteem explains. "This clarity [in comprehending financial concepts] enhances trust and transparency in client-advisor interactions." He also uses visual aids, such as infographics and graphs, to make complex financial concepts more easily digestible for clients with varying levels of financial literacy.

2. Value

Mafteem stresses knowledge alone is insufficient without the ability to translate it into tangible benefits for clients. Hence, he goes a step further to ensure that the services he provides do not come across as merely transactional but transformative.

He does so by keeping these areas in mind:

Holistic financial planning: "Beyond recommending investments, I integrate comprehensive financial planning that addresses wealth preservation, retirement planning, estate considerations and more," explains Mafteem. This comprehensive approach fosters client satisfaction and loyalty. Instead of just recommending products, he focuses on helping his clients prioritize their financial goals, develop strategies to achieve them and adjust as their life circumstances evolve.

Risk management: Another technique is to emphasize risk management strategies. This showcases his commitment to safeguard client assets in volatile market conditions. Having a proactive stance is especially significant during market downturns, as clients can rest assured that their client portfolios are positioned to weather market fluctuations.

Continuous monitoring and adjustments: Regular reviews and adjustments are also important to ensure financial plans adapt to evolving client circumstances and market conditions, improving outcomes over time. "I schedule meetings with clients at least twice a year to assess changes in their needs and risk tolerance, and make adjustments to their financial plan as needed," he shares. These sessions typically include an annual review and a meeting that coincides with a festive season celebrated by the client, such as Christmas, Deepavali, Lunar New Year, or Hari Raya. By coordinating meetings with celebrations important to clients, it demonstrates his thoughtfulness and personal attention. The festive atmosphere also tends to put clients in a more relaxed mindset, which can lead to more open and productive discussions about their financial goals.

"By educating clients on diversified investment strategies during uncertain economic periods, I not only protected their assets but also positioned myself as a proactive advisor focused on long-term wealth preservation," he explains. Additionally, his commitment to personalized financial planning has resulted in increased client referrals, demonstrating the effectiveness of delivering value through tailored solutions.

3. Positioning

Lastly, positioning dictates how others perceive an advisor's expertise, credibility and value proposition. This is the last piece of the puzzle which helps Mafteem develop a unique edge for his practice. “Effective positioning is not about self-aggrandizement but about consistently demonstrating expertise, building trust and aligning with client needs and market expectations,” he adds.

Here are some key strategies he taps on to achieve this:

Thought leadership: Publishing articles, hosting seminars and participating in industry forums are all opportunities to demonstrate ability and thought leadership. These help him position himself as a trusted authority in the financial services space.

Client testimonials and referrals: Testimonials from satisfied clients and referrals amplify credibility and build a robust referral network, which are crucial for sustained growth. Mafteem actively seeks feedback from clients and encourages them to share their positive experiences. For example, he records video testimonials with his clients and forwards these to potential referrals before their first contact to build some initial rapport.

Professional networks: Active participation in professional organizations like MDRT fosters networking opportunities, knowledge sharing, and industry recognition, further enhancing Mafteem's positioning. These networks allow him to stay abreast of industry trends, collaborate with other top advisors and gain valuable insights that he can then leverage to benefit his clients.

By continually enhancing knowledge, delivering tangible value, and strategically positioning oneself, advisors can forge deeper client relationships, expand their influence, and achieve sustainable business growth. As he concludes, "Embrace this formula, integrate it into your practice, and witness the transformative impact it can have on your professional journey. In the complexities of this industry, knowledge empowers, value endures, and strategic positioning distinguishes. Embrace these principles and [you will be able to] elevate your practice to new heights.”

Contact: MDRTeditorial@teamlewis.com

Unveiling the hidden formula of knowledge, value and positioning to serve clients better