Coaching within the Forex industry. By Michael Staudacher

Transcription

1 By Michael Staudacher

2 Changes in the Forex industry: Within the last 10 years the image and the picture of the forex market changed dramatically. Based on factors like: the development of the internet, global communication, flate rates the software developments of the Metatrader, etc. lower initial deposit to open a trading account public recognition of the forex market grows disappointment in bank investments, people looking for alternatives individual traders showed the public outstanding success stories Since the early days of the forex industry, the growth is unstoppable. Every year new markets opening to this industry to give more and more customers access to it. The industry need to prepare themselves! Copyright by Michael Staudacher 2

3 Changes in the Forex industry: The main picture shown today in the forex industry is a very poor level of service and coaching level. Why is that so? 1. The interest in the forex market was and is growing to fast for the forex industry! 2. The industry itself exploded the last years and we can see countless forex brokers around the world. This is leading to the situation, that the internal budget for raising and developing service and education level is very tight. The market is fighting for every customer. 3. Some broker don t feel the need to develop their service and education packages, because they are just to big and the self activation rate is high. (as well the withdrawal rate) 4. Todays customer searching and demanding better service and education levels from their brokers. The customer, the trader is starting to SELECT his broker! Copyright by Michael Staudacher 3

4 Why education is necessary, as a basic service at any forex company? The service and educational level makes the difference for the customer! Todays customer profile: Willing to invest in financial future Willing to develop knowledge Willing to take a chance and a risk Disappointed from the traditional investment opportunities (bank, bonds, etc.) But as well the following points are interfering with the customers decision: overwhelming information's in the internet > customers don t know how to filter and use all this information's for themself. A lot of misleading information's in the internet and the media, are creating confusions. Customer became more suspicious and insecure in their decision to select a broker. Copyright by Michael Staudacher 4

5 Why education is necessary, as a basic service at any forex company? The customer is not anymore accepting poor levels of service, which is specially including the educational service from the broker. Based on the huge variety of brokers, the customer is testing several brokers, but At the end he will choose the broker with the best level of service and education. Specially new customers in the forex market, are evaluating the service level more than the actual spread they receive from the broker. The average spread in the markets are only slightly different from each other and the performance of the platforms, on which the customer trades are similar. As well professional traders more and more looking into the service level they receive from the broker. A top broker gives them both high service level and a good spread condition in the market. THE SERVICE AND EDUCATION PACKAGE MAKES THE DIFFERENCE! Copyright by Michael Staudacher 5

6 Two types of coaching Beginners and Advanced Beginners: The group of customers, which are new to the forex market are dominating! Specially the beginners needs the most attention and service. The most bad experiences are found in this group, they feel cheated by the brokers, because they are loosing their money. The workforce a broker has to invest into a beginner is extremely high and intensive. Every day there are new beginners signing up for accounts, to start their trading. Because of this unstoppable wave of new customers every day, a lot of brokers are not investing much into the service and education level, because they just don t care much. For each lost customer, they have 20 new ones (or even more). Here is the biggest mistake of the brokers, instead of thinking long term, to support their customers with a high level of service and education, they are satisfied with current situation. Copyright by Michael Staudacher 6

7 Two types of coaching Beginners and Advanced Beginners: The new customer, which just had this bad experience, that he lost his investment, is either quitting the market or is looking for a new broker. There are brokers where the service level and the educational service is right and the customer feels after a training period, confident in what he is doing. Yes, there are always some losses, but the customer understands why! With this knowledge and understanding why the customer was loosing, he will continue to learn, to work with the broker and to improve his trading skills in time. It is in the fist place a higher cost factor for the broker to give extensive education service to the new customer, but at the end it is a win win situation for the broker and the customer. I am sure that in 10 years forex industry will look totally different, based on this demand of the customer. The changes already started! Copyright by Michael Staudacher 7

8 Two types of coaching Beginners and Advanced Advanced: The advanced customer / experienced trader has a basic interest in good trading terms and conditions. This is for this group the primary key issue to select a broker. Besides this the advanced broker needs a very special service and educational level. The advanced customer, is seeking for a broker, which gives the feeling that when ever I need some support I can get it. I don t talk about technical issues. Every experienced trader has from time to time a trading depression, which is dragging him down from his normal performance. The broker needs to provide to this group the possibility to build up a personal relationship. The broker starts to know and to understand the trader and therefore, the traders themselves are calling the broker and have regular small talks about the market. The broker the best friend of the trader. Copyright by Michael Staudacher 8

9 Two types of coaching Beginners and Advanced Advanced: The broker which wants to be in the market in the future as well, needs to work through the service and educational level, on the customer relation. When the broker achieved the goal to know the customer, then the possibility is given that the customer, will become a long term trader with the broker. This relation is based on special service levels and special activities for this advanced traders. In the market today, which is mostly based on the web relation, it has to be the most important target for the broker, to close that bridge of distance to the customer! Copyright by Michael Staudacher 9

10 Coaching packages a good mix with synergy effects How looks a good service and coaching package? Basics: 1. Introducing Welcome , besides the with the account details 2. Welcome call, it is much easier to understand the needs and the knowledge level of any customer through a phone conversation. 3. Categorization of the customer, to give coordinated service Exclusive service: 1. Daily webinars with different topics 2. Daily newsletter about the market 3. One on One coaching through the internet 4. One on One coaching and support via phone conversations 5. Offline seminars for beginners or advanced customers This gives the customer all what he needs to begin or continue his trading life. Copyright by Michael Staudacher 10

11 Coaching packages a good mix with synergy effects What are the synergy effects? Building a close customer relation Giving the opportunity that the customer will stay with the broker The customer will introduce his friends as well Introducing Broker (IB) prefer to work with a broker that gives a high service level, because the customer the IB introduces to the broker will have a good experience. Marketing campaigns will be more efficient The reputation of the broker in the internet will be much more better I am sure that in the future, not only the trading terms and conditions will be the key question to select a broker, the service levels will be more and more compared! Copyright by Michael Staudacher 11

12 Coaching develops the customer relation Question for customers: How often are you in touch with your broker? Question for brokers: How often are you in touch with your customers? I am quite sure, that the average answer is not much! The reason for that is, because it needs a huge effort of the broker, to show the customer, that the broker is really interested in the customer. The basic picture is that we all, receive calls more so much companies, which would like to sell us something! Right? So the customers basically are blocking the attempted of the broker, to show his service level in the full picture. Because of that the most brokers are not interested or lose the interest, to provide this service, because it was for them not efficient. It is a huge task for the broker, to develop this service packages for the different nationalities. All the nationalities in the world are thinking different! A global player in the broker business, needs to open up for all individual. Some of them starting to do this and for the one which continued, the proven success started to show itself. Copyright by Michael Staudacher 12

13 Coaching develops the customer relation How to break the ice? This is an issue, which cannot be answered in general, because the different nationalities have different demands and needs. If the ice is broken and the customer doesn t matter beginner or advanced, feels the serious intention of the broker to support the customer, he will start to have regular contact with the broker. The broker itself needs to develop constantly the service and educational offers, in order to build up a long term customer relation. This is a big task for the broker, but the customers will like it! Then the expression from the IT business will apply: Never touch a running system! in our case Never change a running system! Copyright by Michael Staudacher 13

14 Community effect! A broker which achieved to build up this kind of service and educational packages, is creating his own community effect. The customer is meeting in several phases of the day the broker. 1. The newsletter in the morning 2. A conversation with the broker during the day ( or phone) 3. During the day or in the evening regular webinars 4. Coaching or market small talk appointment during the week 5. Occasional live events where the customer can meet the broker or his partners or representatives Customers which feel well treated will become indirect representatives of the broker itself. I see in the future that the social talks between friends, colleagues and acquaintance will include the forex market and the individual broker, which became a part of the daily life. Copyright by Michael Staudacher 14

15 Influence on trading performance The most important effect for the customers is the improvement of their trading performance. The most customers are searching the internet for information's to increase their trading performance, with the effect to be more confused then before. The organized and controlled service and education package at the broker, will show the customer that the communication with the broker is helping him to increase his trading performance. The broker itself is giving the customer, based on the categorization of the customer, the fitting coaching concept. This is as well a huge responsibility for the broker, because the customer is starting to trust the broker. That s why again, I see in the future an additional rating for brokers established, which measures the coaching level. Copyright by Michael Staudacher 15

16 Influence on trading performance A customer that understands what he is doing, is realizing why he is sometimes loosing his money! With the same understanding the customer, will invest more in his activities to become a successful trader and he stays with his broker! The basic target of a broker should be and will become, to educate and train his customers in all aspects of the market. The way how it was in the past and in some cases till today, that the broker is seeing himself only as the entrance to the market, has changed! Changed because the customers are demanding it and it will be THE criteria in the future to select the broker! Copyright by Michael Staudacher 16

17 ARE YOU READY FOR THE FUTURE? IS YOUR BROKER PREPARED FOR THE FUTURE? My name is Michael Staudacher and I hope you enjoyed my point of view about the forex industry. Thank you for your attention and I wish you all a great time within the forex market and a pleasant time at the ABU DHABI Forex Exposition Copyright by Michael Staudacher 17