Giving you the right track to run on

A fortnightly pearl of wisdom to fast track your success

CHRISISM #9 - Needs Analysis vs Wants Analysis

02 February 2016


Nearly 20 years ago I made one small change to my client engagement process and it has revolutionised my business.

As a result of that change, I have not done a needs analysis on any of my risk clients for the last 20 years. However, that does not mean that I have not done any analysis at all – it means that I have moved away from doing a needs analysis and embraced the concept of doing a wants analysis instead.

What this has enabled me to do is to turn what used to be a grudge purchase (or at best an expensive necessity) in to a fantastic opportunity for my clients. Helping my clients focus on what they want has created a totally different  dynamic than when I was addressing their needs.

The major difference between a wants analysis and a needs analysis is that a wants analysis is starting at the top of the mountain and skiing down (due to affordability), whereas a needs analysis is starting at the bottom of the mountain and trying to ski up, which my skiing friends tell me is a lot harder and much less fun!

The key thing for you to understand about a wants analysis is that our role becomes that of helping our clients verbalise what they would want in certain specific "what if" situations – not in terms of types and levels of cover (because how would they know?), but in terms of financial outcomes. Once we know what (financial) outcomes our client would want, we can then use our expertise to put together an appropriate combination of types and levels of cover which are specifically designed to achieve the financial outcomes our client has told us they want.

Quite apart from this being a much more client friendly approach, what it is also doing is putting a huge tick in the "appropriateness of advice" box, because what could possibly be more appropriate than recommending the types and levels of cover that are specifically designed to achieve the financial outcomes your client has told you they want?

Make the change – you won’t regret it! 

The Risk Workshop by Chris Unwin

Are you a financial adviser who would like all of your clients to have appropriate types and levels of personal protection? But perhaps you feel you need a more structured and client friendly engagement process?