7 reasons why cashflow planning should be used live with clients

, 13 November 2020

Using a cashflow tool interactively in a client meeting can generate huge benefits. Here are 7 reasons that you should use cashflow planning live with your clients

In the first two parts of our Talk Money Week series, we looked at how using cashflow planning can enable conversations with clients, and why it’s important to undertake financial planning as a couple.

In the final part of the series focused on encouraging clients to open up about money, discover seven reasons why using cashflow live with clients can be so beneficial.

1. It differentiates you from other firms

We know that the number of planners using a cashflow tool as part of their core advice process is still low. So, if you’ve incorporated it into your process, you’ve already set yourself apart from your peers.

Using cashflow live with clients is the next step. We estimate just 25% of the industry has the confidence to use cashflow live with clients – to change assumptions, retirement dates or other data to generate ‘live’ reports while you’re in a client meeting.

If you can do this, you immediately have a powerful USP that differentiates you from other firms.

2. It changes the relationship between you and your client

Cashflow planning is interesting and engaging for clients. Once you get them into the right mindset, they love talking about themselves and their plans – the key goal of Talk Money Week.

Using cashflow also changes the relationship between you and your client from ‘financial’ to ‘life plan.’

Throughout a client’s life there will be events that affect their assets. Cashflow planning can consider these – for example, showing a client how receiving an inheritance, downsizing their home, or losing their partner’s pension, should they die first, will impact on their wealth and lifestyle.

By adjusting the levels of interest or return, you can start to create a picture of the different results of varying scenarios. Doing this live with clients can be transformative and turns you from an ‘adviser’ to someone they need to stick with throughout their entire life.

3. It can help to attract younger clients

Younger clients tend to be more tech-savvy and they increasingly expect the same of their professional advisers. Talk more about this in our blog ‘How to attract younger clients, and why you might want to‘.

When you adopt cashflow planning, you put the role of the financial planner at the centre of your client’s long-term planning goals. Using the system live has clear benefits for younger people, as they can see the effects that changing certain assumptions can have on their life.

4. It engages clients by giving them real time answers to their questions

One of the key reasons to use cashflow planning live with clients is that it provides real time answers to their questions.

Modern technology means that clients are used to information being at their fingertips. If you can’t answer questions live when they want answers, it is possible that they will look elsewhere for advice.

They are engaged in their plan during your meeting and so answering their questions and dealing with their concerns there and then means you don’t lose them when they inevitably get distracted with life events outside of the meeting.

Using a cashflow tool live retains the interaction of the client, builds engagement, and ensures you don’t lose momentum.

5. Speeds up the decision-making process

Being able to answer a client’s question on the spot can help speed up the decision-making process. You don’t have to go away to do research and plan a second meeting – you can agree to move forward there and then.

Of course, the knock-on effect for you and your firm is that you receive your revenue more quickly.

6. Enables you to work with more clients

Completing everything you need to do live in a client meeting creates efficiencies. You don’t need to arrange multiple meetings or go away and spend time creating a range of scenarios.

Creating these time efficiencies means you can work with more clients, generating more revenue for you and your business. In our previous blog we discuss ‘How cash flow planning can help support referrals’.

We’ve seen that firms who have adopted i4C’s cashflow planning report significant growth in fees per head, clients, and referrals. See what they are saying here.

7. Demonstrate value quickly and easily

If you’re sitting in a meeting with clients, using cashflow planning live makes it easy for you to demonstrate value quickly, easily, and visually to the client across multiple fronts, including:

  • Asset values
  • Tax
  • IHT
  • Ongoing sustainability

You can change one or more assumptions and clearly evidence the value that your advice, and that working with you, is adding.

Get in touch

To find out more, and how you can enjoy a free 30-day trial, please get in touch. Email sales@i4C.technology or call 020 3308 9448.

This article was written by Rob Tedder, Client Cashflow Solutions Manager at i4C.