Right now, more than ever, the manner in which we deliver service matters.
 
We were on a call with a new Financial Advisor recently. She told us this story: She had contacted a very attractive prospective client, a high net-worth individual with a portfolio of several million dollars.
 
The prospective client explained that he already had an advisor, and was in fact just expecting a financial report from him. However, he agreed to chat again later, to get a second opinion on the financial report. A month later, the new advisor called the prospective client back, asking whether he had gotten his report. The surprising answer was no. As it turned out, not only had the report not yet materialized, the current advisor hadn’t even returned his client’s phone-calls.

Needless to say, the client was extremely upset to be left out in the cold during these very volatile times, and was more than ready to listen to another advisor. They set up an initial meeting. A new relationship was formed, papers were signed, and money transferred. This of course was a very happy ending for one advisor, on the other hand, not such a happy ending for the one whose client walked away. We can’t help but wonder if he learned the lesson, and has upgraded his level of attention to existing clients?

We are telling this story because it really highlights the opportunities that are out there right now: The opportunity to give our clients the service they deserve, and in doing so, contrasting ourselves favorably against other advisors that aren’t doing what they can to keep their clients. This concept is based on the contrast principle, which states that when we make decisions, we tend to do it by contrasting between the decision item and reference items.

Serving our existing clients has to be our number one priority.

By Duncan MacPherson with Ingrid Takai

You may have noticed that a bull market in full swing is a rather poor venue to differentiate oneself as an advisor.  Well then, how about a protracted bear market where the Dow keeps dropping like a stone every day, day after day? Now that’s more like it!

 I was taught by my advisor that there would be times like this.  Isn’t everything on sale right now?  Don’t I only lose money if I sell my stocks in a panic?  Aren’t periods like this just as normal as winter following the harvest? Are my long-term goals in jeopardy?  Nope.  Why then, do I keep hearing so much doom and gloom, from the ADVISORS no less? 

You may have heard that famous quote:  Circumstances don’t make the Financial Advisor, they reveal him.  OK, so it doesn’t go quite like that; however, I tweaked it just for today.   It is when things are looking darkest in the markets that you can shine the brightest.

How Easy Can it be to Attract a New Client in These Volatile Times?

Here is an interesting story that we heard yesterday:  An advisor was courting a prospective client, and the client was waiting for a report from his existing advisor before making a decision about switching.  At the prospective client’s request, they agreed to get back together in about 30 days.  When 30 days had passed, they got back together and guess what?  The existing advisor had not come up with the report yet.

Not only that, the client had called the existing advisor 3-4 times, and had not received a return phone call.  The extremely frustrated client signed the transfer papers that day.  Why do you suppose the first advisor never returned this gentleman’s phone calls?  Your guess is as good as mine, but one could surmise he was afraid of dealing with this client due to the volatility of late.  Now, perhaps this story is not the best example because this gentleman was only worth a mere 11 million dollars.  Regardless, sometimes it can be as easy as shooting the affluent in a barrel!

How many other stories like that are out there?  It is conditions like these that expose the weak in your industry for what they are.  Good markets do not do that.  You should be leaping out of bed every morning with a huge grin on your face, and running to the office as fast as you can.  You should be calling your clients and proactively reassuring them.   On the call, you should also be talking about your clients’ families, their occupations, their recreational activities.

Be sure to let your clients know that you have been hearing  a lot of stories these days and that you are sympathetic to those out there right now that have bums for advisors.  Remind them that if they encounter somebody out there that is having dissatisfaction with their Financial Advisor / Financial Situation (oh, and they will), that you will take the time to meet with those unhappy types as one of the services you offer.  Explain that if you cannot help them, you will point them in a direction that is beneficial to them.  Regardless, if that person is important to your client, then that person is important to you.

Advisors everywhere: Contrary to the naysayers, this is your time.  It does not get any better than this.  Make some hay while the sun shines and get busy while these good times last.

By Terry Gronbeck-Jones, Senior Consultant, Pareto Platform

How to Use a ‘Right Fit’ Agenda in First Appointments

By Duncan MacPherson

Prospect meetings are all about exploring a potential relationship. Following a written agenda to evaluate the “fit” showcases you as a professional, rather than a salesperson. Here’s how to do it, including sample scripts.

If you feel like your sales skills stink, I’m going to let you in on a little secret that will make you feel a lot better about yourself.

Many of the most successful financial advisors I know are lousy salespeople—or at least they’ve become that that way. They no longer attempt to strengthen their selling skills because they don’t need to.

These advisors (many of whom used to be salespeople) have evolved into professional consultants; they now strive to attract new clients rather than chase them. In the process, these advisors have become incredibly persuasive, and they have realized that an agenda is essential at new client meetings. Another key factor in their evolution from sales to consulting has been the idea that there needs to be a “fit” between advisors and clients.

What we should do vs. reality

When I first meet an advisor, I scrutinize the process he or she uses for prospective client meetings. It usually follows a familiar pattern:

• The advisor meets the prospective client and they exchange pleasantries.
• The advisor then launches into a diagnostic process; he asks questions and takes notes on a legal pad.
• The advisor shifts gears and begins his or her presentation, overwhelming the prospective client with information about his investment philosophy, competencies, and credentials.
• Toward the end of the process, the advisor tests a few trial closes to see if the prospect is ready to buy.
• Finally, the advisor comes to the moment of truth and asks the prospective client to take action.

Who’s excited?

After listening to the advisor describe his process, I ask this simple question: “Who views it as an accomplishment when a prospective client comes on board and becomes an actual client? Are you celebrating because you’ve closed them? Or are they excited because they’ve qualified to work with you?”

When you sell people, there is a sense of anticlimax for new clients and even a chance that they are feeling some degree of buyer’s remorse. The advisor cannot be the only one who gets excited when a new relationship is formed; the client has to have a sense of accomplishment too.

This is one reason that we suggest turning your prospective client process upside down. Instead of pushing prospective clients into making a decision, you can empower them. Our time-tested, up-front approach has been proven to attract new clients. It combines the use of an agenda with a process that highlights the importance of a relationship based on “fit” rather than on pressure and urgency.

Anticipation and apprehension

When a prospective client approaches your office for the first time, she is feeling two emotions front and center: anticipation and apprehension. The anticipation stems from the person’s curiosity about you. It is possible, for example, that the prospective client is meeting with you because someone spoke highly of you and recommended your services.

Keep in mind, though, this prospective client probably already has a financial advisor, and is probably meeting with you because she is to some degree disillusioned with that advisor. As a result, the prospect is seeking an alternative.

At the same time, she may be apprehensive, fearing change, the unknown, and the expected “sell.” People are sold to each and every day. Consequently, they put up walls when they are in a selling encounter. It’s a natural defense mechanism.

Don’t meet their expectations

Most prospective clients walk into a meeting bracing for a presentation in which you strongly promote your products and services. If they assume that your ultimate goal—your hidden agenda—is to sell them something, why feed that expectation? Instead, you can do something completely unexpected.

When you meet with a prospective client, shake hands, exchange pleasantries, then sit down and slide a printed agenda across the table for him to examine. Then launch into the formal segment of the meeting with a personalized version of this opening statement:

Mr. Prospective Client, let me begin by saying how much I appreciate your taking the time to be here today. I know your time is valuable, and my goal is to ensure that you feel this meeting is a wise investment. Now, I know you are here primarily to assess my financial planning credentials and approach, and to get to know more about my firm. I will share this information with you during this initial meeting.

I also wanted to meet with you to determine if we will have good chemistry over the lifetime of our potential relationship. Therefore, because a relationship like this is important for both of us, no one will be making any commitments today. At the end of our meeting, I’ll be getting together with my team to discuss your situation, and we’ll discuss our compatibility. We’ll then call you in 48 hours to let you know if we think we’d be a good fit for you. You can take some time to decide if there is a fit as well. Is that fair?

A statement like this is a refreshing departure from the usual selling tone of a first meeting. And it has positive results. You will immediately see the prospective client’s body language change. Tension and apprehension will melt away when he realizes that this is not a typical selling encounter.

The prospect was probably expecting the usual selling process, in which the meeting builds to the point when the prospect is asked to buy something. Imagine how much better your potential client will feel when you instead highlight the importance of “buying into” a meaningful relationship. You will instantly disarm and impress. After all, stewardship is more attractive and persuasive than salesmanship.

Using an agenda for these meetings is important, because it instantly gives the prospective client a tangible track to follow and eliminates any fear that you will introduce unwelcome surprises.

An agenda is an outline with the prospective client’s name on top, talking points, and a series of bullets that highlight the main topics you will discuss at the meeting—things like “My approach” and “What’s important to you?”

An agenda gives clients a feeling of certainty. The agenda also benefits you, because it establishes where the meeting will go next so you can relax and actually listen to the prospective client. The agenda also makes it easy for you to explain some of the abstract financial planning concepts, because it provides specific talking points.

Remember, you are in the knowledge-for-profit business. You think for a living. You aren’t selling stuff; you are promoting the promise of a comfortable future insulated from external circumstances. You need all the help you can get to demystify what you do. After all, it’s not what you say that matters; it’s what the prospective client hears and internalizes.

Is there a fit?
The most important bullet point on the agenda is the last one, which should always be “Is there a fit?” When you get to this point in the meeting, you simply thank the prospective client for attending and remind him or her that you will now meet with your team. Also confirm that you will contact him or her in 48 hours.

At this point, one of two things will happen. In some cases, the prospect will thank you and tell you he or she looks forward to hearing from you. More often than not, however, the prospective client will try to close you—to convince you to take action right now.

I’m not making this up. Because of your forthright and disarming process, the prospective client will have developed a high degree of self-motivation and predisposition. She will likely say to you, “I don’t need to think about it. I’m confident that there is a good fit, and I’m prepared to move forward right now.”

How should you respond to this statement? We tell advisors to say this:

Mrs. Prospective Client, I appreciate your enthusiasm! However, if that is how you feel, that won’t change in 48 hours. This decision is important, so take your time. And I’d still like to discuss it with my team.

Ultimately, you live by the rules you set. If you cave in to the client’s request to move ahead immediately, your entire meeting structure becomes nothing more than a tactic, a gimmick, and you seriously undermine your integrity. There is only one situation in which I would suggest that you could make an exception. If a great client has referred the prospective client to you, and if the prospect perfectly meets your ideal client criteria based on assets, attitude, and advocacy, you can consider making the exception. If you do so, be sure to make it clear that this is an exception. Otherwise, delay instant gratification and stick with the process.

This process empowers a prospective client to come to her own conclusions and to feel great about coming on board with you. Furthermore, you are fast-tracking the process of turning a new client into an advocate who is competitor-proof and predisposed to referring other prospective clients to you.

It’s funny, when I conduct seminars on this topic, invariably there will be an advisor in the room who has worked with us in the past and has adopted our approach. Like clockwork, when I finish talking, the advisor will stand up and say, “He’s right, this really works!” To that, I respond by saying, “It works because it’s right.”

Duncan MacPherson is the co-CEO of Pareto Platform and Pareto Systems and is a business development specialist for financial advisors. He can be reached at 866-593-8020 or by email at dmacpherson@paretosystems.com or by visiting www.paretoplatform.com

Do You Value Yourself & Your Business High Enough?

By Jim Kukral · June 24, 2008 @ 1:44 pm

Good question, eh? I’m willing to bet you suffer from what most people suffer from… devaluing yourself or your business. You know… charging too little, or not making your value known to customers and employers.

Admit it, it’s ok. Everyone does it. But the time to stop is now. You’re never going to get where you want if you continue to devalue your knowledge and experience.

So how do you determine your value as a consultant or employee or as a sales organization? Some people or companies have no idea how to price themselves, or when/if to discount. Today I talk with Duncan Macpherson from Pareto Systems, and co-author of “Breakthrough Business Development”.

We talk about value and negotiating your value. Good stuff the consultant who needs to know how to price or value their work and time.

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