Being overfriendly
People are usually hesitant to talk about their financial matters with strangers. In a bid to establish a good rapport you may end up acting too overfriendly in your first meeting. It is best to avoid small talk and stick to the point. “Clients tend not to trust advisors initially. Thus we must ensure that we are making all the key points in the first meeting in a businesslike manner without getting overfriendly or familiar,” says Vishal Dhawan of Plan Ahead Advisors.
Using jargon
The most common mistake advisors make is bombarding the client with jargon. A good advisor must know how to make his point in the simplest possible manner which clients can relate to. “Rather than providing complex data and information, an advisor must convey the benefits that the client will derive from financial planning,” suggests Suresh Sadagopan of Ladder7 Advisories.
Making a sales pitch
It is best not to be very pushy in the first meeting as clients can easily differentiate between a product pusher and an advisor. “An advisor must not act as a sales person. His approach should be different and he/she should not pitch products like a salesman who is desperate to meet his/her targets,” asserts Suresh.
Rajesh Hattangady of Thiink says, “Clients expect different approach and style from advisors. They must not pitch them (clients) in the clichéd manner like agents. IFAs are not insurance agents.”
Not listening to clients
Every advisor has a lot of information to share with clients. But in this process, don’t forget to listen to the client’s needs. Listening to your clients will help you know them better. “Advisors need to encourage clients to ask questions. This will build trust and clients will understand the nuances of financial planning more easily,” advises Nikhil Kothari of Etica Wealth Management.
Every client has a different story to tell and it is advisors job to probe clients to know them better.
Focusing on your interests
While this may sound clichéd, advisors must always act with a fiduciary responsibility. “Focusing on client’s interest will ultimately create a good reputation. Sometimes, advisors need to advise clients even if they may not commercially benefit from the advice,” adds Suresh.
Asking for referral
While referrals may be a good way to grow your clientele it is best if they come unsolicited. “Clients recommend us when they are happy with our services. It is always advisable not to request clients for referrals,” suggests Nikhil.
“Asking for referrals in the traditional way amounts to asking our clients to both prospect and qualify for us. That’s not what they signed up for and it’s not fair to them. Even when people hand over some names and phone numbers, it is uncomfortable for most of them and compromises the relationship because it is an unreasonable request,” said Stephen Wershing, author of the popular book ‘Stop Asking for Referrals in an earlier interview with Cafemutual.
We hope the above pointers will help you deal with prospects/clients in an effective way.
Let us know your views.
