HR Block 2005 Annual Report Download - page 15

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software products, to get personal assistance from
one of our tax professionals, thus introducing them to
the experience and advocacy associated with our retail
services. This creates a natural migration for taxpayers
using do-it-yourself solutions, to those who need a
tax professional to complete their return because
their tax situations have become more complex.
What’s being done to increase the number of tax
clients who become mortgage customers? Is this
business meeting your expectations?
We’re using a mix of training, technology and
relationship-building programs to continue to
increase the percentage of tax clients who have
access to our mortgage services. Our loan consultants
work closely with tax professionals to best meet our
clients’ overall financial needs, and they recognize
that serving clients well is a win-win situation for
everyone. Our data show that tax clients who also
receive a loan through H&R Block Mortgage are
9.4 percent more likely to be a return tax client the
next year.
H&R Block Mortgage has been able to leverage the
strength of the H&R Block brand and the expertise
of Option One Mortgage to get it off to a strong start.
While our growth has exceeded expectations, it’s
been carefully managed to ensure we’re growing
strategically as well. In fact, a recent Gallup survey
ranked H&R Block Mortgage in the “World Class”
level, indicating there was a great deal of respect
between our clients and the company, and more
importantly, that our clients had a very strong
attachment to our mortgage products and services.
What sets H&R Block Mortgage apart from
other providers?
The largest investment most people make is
their home, and it’s often their largest tax
deduction too. We have the unique ability to provide
our clients with tax, mortgage and financial
assistance when making home-buying or refinancing
decisions, thus helping them make informed choices
and smart investments that provide the greatest
benefit in the long run. Because many of our clients
were referred by their H&R Block tax professional,
they’ve already developed a strong, trusting
relationship with the company and know they
can expect exceptional service from our loan
consultants.
H&R Block Financial Advisors wants to help
tax clients with their broader financial needs —
what progress did you make toward this objective?
In the second year of our formal partnership
program that pairs tax professionals with financial
advisors, we more than doubled our number of tax
partners who sent leads to financial advisors.
Through the end of April this year, these tax
professional/financial advisor partnerships resulted
in more than 100,000 direct referrals to H&R Block
Financial Advisors, an increase of more than 80
percent in the number of referrals from the previous
year. These partnerships represent a significant
opportunity for our business because they are a
critical first step to providing financial services that
meet our tax clients’ needs.
What is being done to make H&R Block
Financial Advisors profitable?
We’ve taken a number of actions to better align
the cost structure of this business with its revenues.
We implemented a number of expense control
measures and reduced our back office staff.
We’re continuing to increase both the scale and
effectiveness of our financial advisor base, focusing
on recruiting experienced, high-producing advisors.
Through technology, we’ve made it easier for our tax
professionals and financial advisors to work together,
which will enhance our advisors’ productivity and
better enable them to deliver the advice-based
financial services our clients need. We’ll watch the
business closely during fiscal 2006, making further
adjustments as needed.
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13
H&R Block
PERCENTAGE OF CLIENTS
SURVEYED GIVING H&R BLOCK
A PERFECT “10” SCORE
>Overall client satisfaction = 70%
>Overall satisfaction w ith tax
professional = 76%
>Tax professional offered suggestions
to improve your tax and financial
situation = 82%
>Tax professional demonstrated
expertise and tax know ledge
= 71%
>Tax professional understood
your needs = 71%
>Tax professional got you the
maximum, allow able refund
= 72%