After “Yes,” Holding It All Together

Your rationale: “Let sleeping dogs lie.” I’m not going to call.

The client’s rationale: She was in touch all the time. Then I agreed. I haven’t heard a word since. Maybe this isn’t such a good idea after all.

Risk: They call to cancel or back out. (Paperwork might be involved.)

(Image: Thinkstock)

So How Much Should I Keep in Touch?

Different conversations with a successful insurance agency owner and another financial advisor yielded another approach. Remember, we are talking investments in this example.

1. Immediately after they agree, congratulate them on making a good decision. Explain why this should help improve their situation going forward or help get them closer to their goals;

2. Review what you will be doing. “We will be sending this money to Abracadabra Investments, one of our money managers…”  This is also known as “reading back the order”, a requirement in the financial services industry. This is in place so the client knows exactly what they agreed to.

3. Explain “life after the investment starts.” You might say: “Have you ever worked with a professional money manager before? You will get lots of trade confirmations in the mail. Open them, look at them. Save them. We will talk later.”

4. It’s a couple of days later. Call with an update: “The money manager has confirmed receipt of the money. They are buying stocks now. Those confirmations will come soon.” Also explain: “Your first statement should arrive in the first days of next month. I would like you to call me when you get it.” Here’s the rationale: The first statement is often confusing. They may wonder “Where’s my money?” They will wonder if it’s gone up or down. You will want to walk them though, page by page.

5. It’s the beginning of the next month. The statement is available online. (You referenced the print version in your conversation.) You are pretty confident they’ve got the print version. You don’t wait for their call! You call first! If they have the statement, that’s great! If not, you walk them through how to access it online, a behavior you want to encourage. You review it together, either the print or online version.

What Have We Done?

This is a “high touch” way to initiate a new client relationship. You have initiated contacts. You have prepared them for mail that will follow. You have acted, not reacted.

Does this take work? Yes. However, if you take the “stay silent” approach mentioned earlier, you might win the sale but lose the relationship. You want a satisfied client who will transfer in additional assets and also refer friends.

— Read 7 Reasons Why Friends Prefer Doing Business With You on ThinkAdvisor.