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4 Questions to Attract More Clients

There are just four questions that every financial adviser must answer if they want to attract more clients. If you can answer these questions, you’ll be able to more effectively communicate your message to prospects so that they will want to work with you.

No. 1: Who’s Your Ideal Client?

When advisers think about their business and how they help people, they tend to think the most about the services they provide. Things like the types of planning they offer, the investments and products they use for clients, the process they walk clients through, etc., but we rarely focus on defining who we serve.

The financial advisers that will survive and thrive over the long term will define their business not by the service they offer but by the people they serve.

They know exactly who their ideal client is.

No. 2: What Value Do You Provide?

You undoubtedly provide a lot of great advice to your clients. But what do your clients value the most? What’s most important to them?

Do they care about investment selection, the products, the process, your credentials, your years of experience or your past performance? I’m sure they do.

But there’s actually only one thing that your clients value above all else: their transformation.

They are seeking the positive change they experience by working with you. They want the end result. How do I know this? It’s because people buy the destination, not the plane ride.

What is the destination your clients are trying to get to? What’s the ideal end result you can help them achieve? This is the real value you give to clients and prospects.

No. 3: How Do You Clearly Communicate Your Value?

If you’re the greatest financial adviser in the world but you don’t know how to clearly communicate your value to ideal prospects, then you won’t be in business very long. If you cannot clearly communicate your value to people, nothing else you’re doing in your business really matters.

Many good advisers have failed because they didn’t know how to clearly communicate their value.

The best advisers are able to engage in a conversation with a complete stranger and within two minutes, that stranger fully understands how that adviser helps people. Even better, that stranger will have enough curiosity and excitement that they want to hear more from the adviser.

If you’re able to naturally start the conversation with people, you’ll have no trouble getting people in the door. And If you can communicate your value, you’ll have no problem getting people to become your clients.

No. 4: How Will You Consistently Attract and Acquire New Clients?

This is the most important question that advisers need to answer. It’s also the one most advisers have a hard time answering.

How do you find new clients? Most advisers rely on referrals to get new business. Some others still do seminars, lunches, cold calling and networking events. Those techniques are good but there are more and more advisers turning to newer ways of attracting prospects to them. Techniques such Linkedin referrals, Facebook ads, blogging and webinars are quickly growing in favor with advisers. This is because they are less expensive and more profitable than the “old school” ways of getting new clients. But there’s also a steep learning curve to these. You shouldn’t let that stop you from testing them out. When you find the technique that works for you, stick with it and focus all your energy there.

Take five minutes and try to answer these four questions. And be honest with yourself. If you’re having trouble with one of the questions, start exploring new ways to try and answer it. If you need ideas, download the accompanying guide to help you out.

dave-zoller

 

Dave Zoller, CFP®
Financial Adviser
Streamline My Practice
Warrenville, IL


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Education—The Missing Piece of the Investor Success Puzzle

Being a good financial adviser requires mastery of a wide range of technical skills. Being a great financial adviser requires having skills as a counselor and psychologist. Being an outstanding financial adviser requires developing your skills as a teacher. Here’s why.

The job of a financial adviser is to help each client get from Point A (where they are today) to Point B (where they want/need to be at some point in the future). The question is always how to maximize the chance that the client will arrive safely and securely at Point B.

When I first entered the financial services industry, the focus was on the technical aspects of this journey. Advisers used their financial planning and investment skills to define and plot the course from Point A to Point B.

Later, the focus broadened to include another dimension of the problem. Supporting clients emotionally and coaxing them to do the right thing has always been part of the job. But our understanding of the importance of that aspect of advising clients changed when research from the world of behavioral finance entered the mainstream.

Soon we were awash in new jargon that labeled each quirk in the vast inventory of our financial decision-making dysfunctions. A tsunami of information familiarized us with the basic concepts of behavioral finance, but left us unsure about what, exactly, to do with this information.

One exception is the area of risk tolerance. A host of service providers emerged with products that purport to help us measure the risk tolerance of our clients. But what should you do when there is a significant gap between a client’s need to take risk and their comfort in doing so?

Say you have a client that has done a poor job of saving over the years. The client has no choice but to be aggressive in their investment strategy if he is to have any hope of meeting his goals. But what if his tolerance for risk is very low? Do you ignore the client’s discomfort with risk-taking or do you dial down the portfolio in favor of a smoother ride?

Actually, this is a false dilemma. It assumes that the client’s risk tolerance is a fixed feature like the nose on his face. This is simply not true. Soldiers learn to fight with bullets whizzing by their heads. Athletes learn to maintain their focus in the midst of chaos. Clients can be taught to better weather the inevitable storms they will encounter. Education is the key.

Most advisers are comfortable answering client questions about investing, but this level of education is reactive and event driven. Exhorting clients to “think long-term” and “stay the course” is not education, it’s sloganeering.

Being a good investor requires a solid frame of reference. Clients need to know what to expect and why things happen the way they do. They need that course we all should have had in school, but never did. Providing this level of education requires thought, planning and a proactive approach. But like soldiers and athletes, clients can be trained to be better, more confident investors.

If you want your clients to make it successfully from Point A to Point B, you should put as much time into teaching them about the journey as you do developing financial plans and investment solutions for them.

scott-mackillop

 

Scott MacKillop
CEO
First Ascent Asset Management
Denver, CO


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All Business is Personal: 3 Tips for Addressing Difficult Client Conversations

“Hi Jim. I wanted to inform you that your funds will be transitioning from an A share to a C share, which means you will actually pay less in fund fees, however, my fee cost will be increasing just a big. Let’s set up a time to discuss.”

Now there’s an email nobody wants to send or receive. As the financial industry evolves and advisers are held to an increasingly higher standard, you may have to take a new approach to difficult conversations with your clients. The ability to engage clients in these discussions is critical in building and retaining a successful practice.

Here are three tips based on the research of G. Richard Shell, award-winning author and creator of the University of Pennsylvania Wharton School’s “Success Course,” on how to better approach challenging conversations and ensure you’re creating Demonstrations of Value (DOVs).

Talk About Client Goals First
When times are tough, take a positive approach by focusing on their goals while still acknowledging the concern. For example, you could say, “I know you set up this portfolio to save for Katie’s college education. She’s starting high school next year, so we still have four years until tuition starts. I know the markets have been rough, but I believe we’ll still be able to achieve your goal. Here’s why.”

By leading the conversation with knowledge of your client’s specific needs and concerns, you can better address the need to maintain an objective view throughout market challenges and not let emotions cloud a commitment to a longer-term strategy.

Help Them See the Big Picture
Your client comes to you with big news. She and her husband are ready to buy that house on Lake Winnipesaukee they’ve been talking about for years. While you share her enthusiasm, you want to make sure that she’s putting this decision into context.

During this conversation, you have an opportunity to demonstrate your knowledge of your client’s plans and needs. How long do they plan to own this house? Will they need to consider space for additional family members later on? Is this where they’d like to retire one day? If yes, how does that fit into their overall retirement plan?

When you help them consider the questions that matter, you reinforce your value more deeply than their investment positions. You can help be a leader when it comes to a family’s important life decisions.

It’s About More Than Money
Get to know your clients beyond their portfolio. While it may seem obvious, occasionally our time gets the best of us and we don’t focus on the details that could make a difference.

Keep notes on their hobbies and interests, where their priorities are, how old their kids are and family anniversaries and birthdays. Knowing these specifics can help foster a relationship that goes beyond just business, creating a partnership that can withstand even the toughest financial environments.

Are you ready to demonstrate your value in a collaborative client relationship? For more tips on how to boost your communication skills, learn about the 3Cs to enhance your negotiation skills.

JohnEvans

 

John Evans
Executive Director, Janus Labs
Janus Capital Group
Denver, CO


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Why Clients Choose You

Why would a prospect end up choosing you over another adviser?

There’s really only one thing that a prospect is looking for when they begin the conversation with you. If they believe you can provide it, it’s much more likely that they’ll become your client.

What Prospects AREN’T Buying

Despite what most advisers think, people aren’t working with them because of their:

  • Superior investment selection
  • Comprehensive financial plan
  • Account aggregation software
  • Years of experience
  • Credentials after their name, etc.

We’re all proud of those things and they play a role in the decision to work with you, but they’re not the reason people choose you over everyone else. Prospects aren’t buying the products or features you provide. They’re actually not buying the benefits either.

They’re Buying Transformation

The one thing that they are buying is the transformation that they believe they will get by working with you.

What do I mean by that? It doesn’t matter what people are buying. Whether it’s a candy bar or new car, we’re all looking for the same thing: we’re living in a current state and we want to move into a desired “after state.” We believe making the purchase i going to move us into that place we want to be.

Imagine what your prospect’s thinking. Why are they talking to you? Why are they looking for a financial adviser? I can definitely tell you that they’re not calling you because everything is perfect with their finances.

They’re calling you because they are discontent with some aspect of their financial life. They’re not completely happy with everything they’re doing. They have a problem that they don’t know how to solve and they may be frustrated, worried or confused. The fact is they’re looking for an adviser because they are in a place that’s less than ideal.

And that’s your ideal prospect. Why? Because you know that you have the solutions they’re looking for.

Where Do They Want Go?

If their existing state is discontentment, then they need to move into a place of contentment.

This is the entire value of your service business summed up in one sentence: you are helping people move from their before state to an ideal after state.

If you can clearly communicate this in a way that they understand, you’ll never have to sell anything ever again.

What’s The Next Step?

Take out a sheet of paper and write down answers to these questions.

  • Where are they now?
    1. What are their problems?
    2. Why are they looking for help?
    3. What’s their emotional state?
  • Where do they want to be?
    1. How will this change after working with you?
    2. What will they have?
    3. How will they feel?
    4. What will they leave behind?
    5. What kind of person do they want to become?

Once you’ve written these answers, you’ve taken the first step to discovering the transformation your ideal client is looking for. Start using these things you’ve discovered as you talk with prospects moving forward. Pay close attention as you talk about their desired “after state.”

dave-zoller

 

Dave Zoller, CFP®
Financial Adviser
Streamline My Practice
Warrenville, IL


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A Client’s Evolution

It’s no secret that advisers want to have a client base made up of loyal clients. However, most advisers may not take the time to fully understand why some clients are one-time customers while others are lifetime advocates.

Let’s take a brief look at what I call “the client’s evolution”—an evolution that we all have with our clients to some degree—so that you can better comprehend how you can build client relationships that last a life time.

The Customer

More than 20 years ago, I began building my business by following some simple advice from my branch manager: Find a good double tax-free municipal bond and tell everyone you can about it.”

As an eager rookie I did just that and soon I was opening up new accounts with what I thought would be “forever” clients. Unfortunately, I soon realized that many of those clients were simply one-time customers—people who had decided to buy a product. They were trying to find the best-yielding bonds and it didn’t matter who they were buying from. Some of those individuals bought additional bonds but for the most part I was one of several advisers they were working with and my value was merely a function of how well my product was doing at the time.

If you have several “customers” working with you and you would like to forge stronger relationships with them, you must find a way to show your value to them. One of the best ways to do this is to stop being a product pusher and start being a problem solver by getting to know them. Once you do, you can find their needs and fill them.

The Client

As my practice grew, I decided to take a different approach and offer prospects a complete plan to help them achieve their financial goals. This opened the door to creating solid connections from the start because I was able to identify specific needs that the prospect had and share with them how my products and services could be their solutions. I was no longer pushing any specific product but rather solving their financial concerns. As a result, these types of people became clients.

If you have customers you’d like to turn into clients and get to know even better, it’s time to get to know them on a more personal level.

The Friend

After a number of years, I noticed that some of my clients had turned into close friends. Just as any friendship evolves with communication and respect, so can an adviser/agent/client relationship.

I never started out to form friendships with my clients, but friendships occurred naturally over time after I showed genuine interest in their lives. They were no longer just clients to me, but friends who I wanted to help—not only with their financial goals but in any way that I could.

The Advocate

At some point in my career, I realized that a select group of clients whom I had formed friendships with had an interest in my success. I had developed a level of professional and personal trust with them and they were absolutely convinced that I was not only capable of helping with their financial advisory needs, but that I truly had their best interests at heart.

That’s when I realized that I had what I now called “advocates” or clients who willingly wanted to help me succeed by introducing me to their friends and family. In addition, some of these people shared their own experiences in business and suggested marketing, staffing and even branding strategies to help me.

Why Clients Evolve

I’m sure by now you might relate to having clients of every stage that I mentioned. The secret to evolve your client base is to evolve as an adviser yourself and be involved with your prospects and clients from the very start.

If you are ready to evolve your practice, schedule a complimentary 30-minute coaching session with me by emailing Melissa Denham, director of client servicing.

Dan Finley

 

Daniel C. Finley
President
Advisor Solutions
St. Paul, Minn.


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To Instantly Connect with Your Prospects, Use The Magic Question

After learning this single question, your initial meetings with prospects will never be the same.

This question will help you instantly connect, differentiate yourself, and pre-qualify your prospects within the first few minutes of the meeting.

Once you see the effect it can have, you’ll most likely make it a mandatory part of every first meeting with a prospect.

Why Is This Question So Effective?
I first learned about the Magic Question from the business coach, Dan Sullivan. He wrote an entire book (titled The Dan Sullivan Question) on this question and why it works. After reading the book, I tweaked the question slightly so that it would make sense for financial advisers to ask their prospects.

At first, you may be a little hesitant to ask the question because it’s so different. And you can be pretty sure that they’ve never been asked this by their financial adviser before. Once you start using it, it will become clear how quickly you can connect with complete strangers over the phone.

The great thing about the question is that everyone can answer it—but they are required to think before they do. This is an important part of the process because you want to make sure you’re working with people who care about their finances and want to put the proper effort and thought into planning their future.

You may notice that about one out of 20 people do not answer the question. Either their brain cannot function in a way to think futuristically or they simply do not want to answer. This is actually a great thing because the people who don’t answer the question or don’t give authentic answers are probably not the right fit. They are the kinds of people you can disqualify right away before wasting any more time.

There are three reasons why this question works:

1.) It’s about them. About what they want. The results they are looking to achieve.

2.) It brings clarity. To where they want to go. To what’s most important to them. To how they define success. As you know, It’s hard for some people to specify their goals. This question makes it easy.

3.) It encourages them. One of the fastest ways to influence someone is to encourage their dreams. They are opening up to you about what’s most important and you are their ready to stand next to them and show them how it’s possible. People are attracted to those who encourage them in what’s most important in their life.

The 4-Part Magic Question
The first part of the question is the most important. That’s the one you will ask to instantly connect with someone. The following three are not necessary but they can be great to follow-ups to delve deeper into what they’re are looking for.

Here is the magic, four-part question:

If we were meeting three years from today, and you were looking back over those three years, what has to have happened in your financial life for you to feel happy with your progress?

  • What are the biggest challenges you will have to face in order to achieve that progress?
  • What are the biggest opportunities that you would need to focus on to achieve those things?
  • What role would you like an adviser to play during those three years?

Give the magic question a try during your next initial meeting with a prospect. After you do, I’d love to hear how it went. Email me at dave@streamlinemypractice.com to share your results.

dave-zoller

 

Dave Zoller
Financial Adviser
Streamline My Practice
Warrenville, IL


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The 3Cs to Enhance Your Negotiation Skills

A new calendar year represents a fresh beginning and an opportunity to think anew about the adviser-client relationship. Financial advisers know that their annual planning conversations with clients may need to address sensitive topics related to the changing regulatory environment, particularly as we near the proposed timing for implementation of the Department of Labor’s Final Rule. These issues will certainly be on the agenda if you are transitioning to a fee-for-service model.

But the ability to engage clients in potentially difficult discussions is always key to building a successful business.

Central to these discussions is the ability to negotiate—a skill I have spent years cultivating through personal successes and failures, and through teaching thousands of business leaders and professionals at the University of Pennsylvania’s Wharton School. I consulted on a Janus Labs program, titled the Science of Negotiations, to prepare advisers to have better planning meetings. The core tenets of the program, and negotiating generally, are what we call the three Cs: commitment, candor and credibility.

Commitment: We know that as a financial adviser, your commitment is to serve as a trusted counselor to your clients. Working in a client’s best interest isn’t something new that rules require—it’s what you’ve always done. You need to convey this commitment clearly and consistently in order to build and maintain the kind of trust that allows for open dialogue. By reminding clients of your commitment to them, and connecting your actions to that commitment, the value of your relationship and services should always be top of mind for them. This way you can raise sensitive issues when the client can hear and process them fully, not simply because a deadline requires it of you.

Candor: We’re big proponents of the “radical candor” used at Silicon Valley companies like Facebook and Google. For advisers, this means demonstrating that you care personally about each client, while also directly addressing how DOL-related changes will affect them. Be a straight talker. Don’t beat around the bush: be clear that this is a difficult subject but the new services you offer are commensurate with what the client needs. Telling clients about the products and services you are not recommending is also important. Transparency is key. When you reveal information that’s not necessarily in your best interest, but is clearly in the best interest of the client, you build trust.

Credibility: Openly and willingly revealing information about products and fees increases your credibility, and research shows that credibility is the single most important asset of effective negotiators. Your credibility rests on expertise, competence and trustworthiness. It means that: 1) you bring your clients valuable knowledge and insights; 2) you apply your expertise to their benefit with skill and diligence; and 3) you consistently use your expertise and competence to create long-term value as a trustworthy counselor.

Strong negotiation skills will help you communicate more effectively in all your interactions. Demonstrating that you are credible, candid and committed will put you in a position to better navigate the sensitive topics that are inherent to financial advice, including fees and regulatory concerns. And this is a good time to start strengthening those skills, as you begin scheduling the conversations that will guide your client relationships throughout the new year.

For more information on how to use The Science of Negotiations for meaningful conversations with your clients, please contact your Janus Director or visit www.janus.com.

G. Richard Shell

 

G. Richard Shell
Legal studies and Business Ethics Professor
University of Pennsylvania’s Wharton School
Philadelphia, Pa.