1. Making your point.
You are recommending a course of action. It might be buying a basket of stocks, increasing their equity exposure. They don’t want to take action, just sit tight.
Avoid: Maybe I didn’t make myself clear. You are being confrontational, assuming if you talk more they will agree. They might become more entrenched in their position.
Use: Why? You‘ve made a case for why you think the stock market might do well going forward. They want to stay on the sidelines. Can they explain their reasons why they feel not taking action is the better choice? You aren’t being confrontational.
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2. Drawing them out.
The more you can learn about a person, the easier it is to tailor your recommendations to their unique situation.
Avoid: I’ve heard enough. This situation might be one you have seen dozens of times. It’s plain vanilla. It implies you are going to give a boilerplate answer or solution.
Use: Tell me more. People generally like talking about themselves. You are letting them do the talking. They feel you are taking the time to understand their situation.
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3. Getting to the point.
You’ve seen this on TV plenty of times. The person walks into your office. You don’t know the reason they wanted to meet.
Avoid: What do you want? It implies my time is more valuable than yours. You are wasting it.
Use: How can I help you? It’s obvious they have a need or an issue. They want a problem to go away. You want to be seen as part of the solution.
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4. Completing documents.
There’s plenty of paperwork in our business, even if some can be completed online. Clients know when they sign documents, they are committing themselves.
Avoid: Now it’s time to sign your life away. Prospects are often anxious they are making a big mistake. You’ve just told them they might be right.
Use: Place your signature here. It’s a softer way of saying “Sign in the places I’ve indicated.” You are explaining everything they are agreeing to above their signature.
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5. Explaining fees.
It’s logical to assume prospects know you aren’t working for free. Do some advisors still think talking about fees is vulgar? It must be explained.
Avoid: Here’s what I charge. It has that “It’s my way or the highway feel about it.” It implies there’s no room for negotiation, when there often is room.
Use: Let me explain how we make money. They know you do. Now you are answering the unspoken question.
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6. Death and insurance.
The death benefit is a major consideration when buying life insurance. When you are the person writing the check, it’s often hard to see any benefit in your death.
Avoid: When you drop dead. It sounds sudden and final, like it could happen anytime. Now that you’ve purchased the coverage, the best outcome for your beneficiaries is you don’t make it home. It sounds harsh.
Use: When you are no longer in the picture. It’s a tactful scenario that’s easy to understand. There may come a time when you aren’t around, but hopefully that’s in the far distant future.
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7. Getting an introduction.
Thanks to LinkedIn and other information, you know this client has a direct line to someone who could be a great prospect. You want an introduction.
Avoid: You haven’t sent me any referrals lately. The word “referral” is industry jargon that just doesn’t seem comfortable in everyday conversation. It also implies your client is obligated to send people in your direction. Wrong!
Use: This is the type of person I may be able to help. They know you are looking for business, but you’ve expressed it to communicate that the other person will be better off after you both are connected.
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8. Seeking referrals.
It’s a situation where the vaguer the request, the blanker your client’s mind becomes. You need to be specific.
Avoid: Who do you know that needs my services? It’s very vague. You can do many things to help people, but your client only knows you in a specific context. They might have become so comfortable with you, they’ve forgotten the context.
Use: Who do you know that recently landed a new job after losing their previous one during the pandemic? You know there is IRA rollover potential there. You have identified a very specific situation. They might respond: “Got a pen?”
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9. Learning about their business.
Business owners usually love telling the story about how they had an idea, rolled up their sleeves, overcame adversity and built a successful business.
Avoid: I bet you had all of this handed to you. They might have inherited the business, but you are implying they didn’t need to work their way up. It sounds like you are jealous. They will likely become defensive.
Use: How did you start your business? They get to tell the story. You learn about the other people involved. Where are they now? What business financing needs can you spot?
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10. Accepting a compliment for good advice.
It’s been said when the client’s investments decline, it’s the advisor’s fault. When they appreciate the advice, the advisor is just doing their job. Fortunately, some clients do thank you for giving good advice.
Avoid: That’s why you pay me the big bucks. Yes, I’ve said that! But only once. If your client wasn’t thinking they were overpaying before, they are now.
Use: Thank you for taking my advice. You are reflecting the compliment by reminding them this isn’t a discretionary relationship. They must accept your recommendations before you can move forward. You are acknowledging that point.
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11. Having the conversation about fee increases.
Although the financial services industry is very price competitive, fees do go up. If you don’t tell your client, someone else will.
Avoid: The firm is raising prices. It’s almost as if you were saying “It’s not my decision.” You are casting the firm into an adversarial role. The client sees you as part of the firm. That’s how you get paid.
Use: We have revised our pricing schedule. Let me explain how this affects you. It’s likely some prices went up and others went down. You are being transparent.
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12. Getting to the point (When you are calling.)
You are in touch with clients and prospects all the time. How do you start the conversation?
Avoid: Hey, how are you doing? Although you might mean to put the other person at ease, you are calling in a professional capacity at that moment. Your manner should reflect your professionalism.
Use: Let me tell you why I’m calling. Another good expression is “Thanks for taking my call.” It acknowledges their time has value and you are being respectful. It’s a polite way of communicating: “Let me get right to the point.”
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August 23, 2021 at 02:41 PM
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