Most discussions I have with business owners in Financial Services is around how high the turnover rate is in recruiting new financial advisers. These companies generally spend millions investing in their people from a training perspective and they still get mediocre results. In order to have a successful business in financial services, you would need to have a business with a very solid foundation. You can make people read books, attend lectures, and even give them “mentors”, but none of it matters if they don’t understand what the end consumer wants from a financial adviser. Until you understand what real people really want from a financial advisor, you’ll always be driving with the brake on. Luckily for you, I’m going to share with you what people really want from financial advisers. Newsflash: it’s NOT fancy credentials or your complicated investment strategy or even you nice suit, fancy car or flashiest Rolex…. 1. They want someone who will understand their situation. How well do you understand your prospects? Can you empathize with them and relate to their struggles and what they are experiencing? Know your target market, work with the people you relate to. Focus on a niche market & work on building your community, your followers and your customers. 2. They want a financial planner who is open to teaching them. One thing financial advisers forget is that if you keep it simple, it is way more valuable to your client. Trying to force feed them with a mountain of knowledge is madness. Your clients aren’t naïve or stupid, but you probably know way more about finances than they ever will. Usually, the more you know about a particular topic, the more complex your explanations become (simply because you understand it more), which causes the “education” to go right over your prospects’ heads. When this happens, the financial advisor will think the appointment went well while the prospect leaves confused, too embarrassed to speak up. And remember, the only opinion that matters is the prospect’s opinion! Don’t use jargon and complex language to make yourself look smart. I know you think it elevates you in the eyes of your prospects, but it doesn’t. It usually intimidates them and people don’t want to entrust their financial fate to someone who intimidates them. Oh yeah, and don’t assume that prospects understand more than they actually do. They will often act like they understand when they actually don’t.
3. They want someone who will respect their assets, no matter how small. One of the biggest reasons why people don’t seek out a financial adviser is because they feel as if they don’t have enough money to invest. There’s a perception that you have to be a millionaire or multi-millionaire before you even consider a financial adviser. This is probably THE BIGGEST unspoken objection for financial advisers. Make sure you recognize it & handle the objection in an empathetic way. 4. They want someone who will solve their problems, not pitch products. This goes hand-in-hand with #1. If you understand your prospect’s situation, you will stand a better chance at solving his or her problems. You don’t need to sell products themselves, but you do need to “sell” the idea of financial planning, saving for retirement, insurance etc. Just have a conversation with your prospect & ask questions. The person in charge of the meeting is the person asking questions. 5. They want someone who will keep in touch. How often do you keep in touch with your clients? If you can’t keep in touch when you’re trying to earn their business, you give prospects the message that you won’t keep in touch if they become clients. Face it – most people think of financial advisers as commodities. And until you develop a niche and/or a particular area of expertise, you ARE a commodity… unless you focus on the relational aspect of the business. This part isn’t cut-and-dry as the rest. How exactly you keep in touch largely depends on your personality and your prospect/client base. Some people want to meet with financial advisors every quarter, while others think that’s overkill. Some financial advisors like sending quarterly reports instead, summarizing current events and market news. Goood communication alone will never sustain a relationship, but poor communication will almost always break it. This article assumes that you have both integrity and competency. An adviser should never lie, even by omission. You also need to have the ability to help another person manage his or her finances. Without a baseline level of competency, you’re dead in the water. Assuming you operate competently and with integrity, you will be miles ahead of your competition if you remember the above five things.