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January 31, 2013 at 01:39 PM
You are in competition for an ideal client. You have reviewed the client’s information, goals and objectives. You have laid out a financial plan for the prospect that is technically impeccable. In your eyes it blows away your competitor. But in the end, the prospect decides to do business elsewhere.
Almost every advisor has experienced a similar scenario. Why does it happen? Because in the financial services business, prospects do not always select advisors based upon their technical skill s or investing proficiency. They are often selected based upon their skill as a communicator. Advisors who have the ability to convey strategies and concepts to clients in a simple, easy-to-understand manner have a real competitive advantage.
In the upcoming years advisors can expect this reality to become even more apparent. As the baby boomer demographic has begun to reach retirement, advisors are realizing that providing solutions for income distribution is markedly more complex than investing for accumulation. This leads to more complex conversations with prospects around difficult concepts. It has never been more important for advisors to hone and enhance their skills as communicators and teachers.
A powerful communication skill is the ability to use analogies to help listeners more readily understand critical concepts. For the purpose of this discussion an analogy may be broadly defined to include a simile, metaphor, visual aid, real or fictional story. Analogies often paint vivid mental images that more easily connect with a prospect’s emotions. They also serve as a powerful memory aid to help prospects remember a main point long after they leave your office.
Those advisors who can communicate by using vivid and memorable analogies will find they have a distinct advantage in closing prospects and helping clients understand complex financial concepts.
Types of Analogies
Similes and Metaphors – Similes are the simplest of all analogies. While comparing two things that are quite different, similes actually highlight something the things have in common. Similes usually will contain the word ‘like’ or ‘as’ to make the comparison. For example, when explaining the importance of guaranteed income one might say,
“A retirement income plan without guaranteed income is like skydiving without a parachute.”
A metaphor is more forceful and direct than a simile. It speaks as though one thing were another. For example, one might say,
