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In Praise of Good Financial Advisers (You Know Who You Are)

Ours is an industry that gets a hefty dose of negative publicity. True, there are scoundrels perpetrating Ponzi schemes and conducting other nefarious activities—and they cast a pall over the public’s perception of the well-meaning and competent financial professionals out there.

The good news is, these bad guys are few and far between. The bad news is, with our heavily regulated industry, sometimes the good guys may feel they are being micromanaged as a result. Still, there are so many financial advisers out there who are doing excellent work for their clients.

The Well-Adjusted Retiree
I recently had the opportunity to see this excellent work firsthand when I attended a client event hosted by an ensemble practice. At the event, a panel of recently retired individuals and couples answered questions from an audience of pre-retirees. The questions varied from cash flow, social security, Medicare and investment performance to how to align a couple’s “vision” of retirement, which included things like whether to downsize their home and how to stay connected and social with friends and family.

I was especially curious how the panel would respond when an audience member asked if the peaks and valleys of the market affected the panel’s daily decisions about drawing down on their nest egg. This question was especially timely, as the market had just dropped more than 870 points in the prior week due to the Brexit vote. The response? Daily markets weren’t a showstopper. In general, the panelists said:

  • They had their goals.
  • They had their nest egg.
  • They didn’t pay much attention to the markets unless their advisers said they should.

One couple talked about how they met with their financial adviser, estate attorney and CPA for an annual meeting. That meeting gave them the confidence that not only were their investments on solid ground despite market volatility, but that tax efficiency and an integrated estate plan were being managed by a team of professionals working together to help them achieve their retirement goals.

Helping Clients Not Sweat the Small Stuff
Financial advisers enjoy deep, meaningful relationships with their clients. Sometimes they garner appreciation and recognition for what they do. But just in case you haven’t gotten a dose of it lately, as one of the good guys in the industry, know that because of your competence and caring, your clients don’t need to sweat the small stuff like daily market volatility. Instead, they can focus on enjoying the retirement lifestyle you helped them achieve.

Thank you for all you do, financial advisers!

Joni Youngwirth_2014 for web

 

Joni Youngwirth
Managing Principal of Practice Management
Commonwealth Financial Network
Waltham, Mass.


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The Experience Story: In Reverse

It’s no secret that telling a great story can help prospects better understand your recommendations. Story-based selling is the art of using metaphors, analogies or stories to do just that. However, what is little known is that you can have a similar effect when you set the stage by having a prospect share an experience about themselves or about someone they know who has used a particular product or service. Many times you get them to buy into the products or services you are about to recommend based on a story they have just shared with you, so that there is little need for you to go down the path of a typical closing. This process is a reversal of sorts as the standard practice is for advisers or agents to have to share their existing client’s experiences in order to “sell” to a prospective client. So I refer to this as “the experience story: in reverse.”

During a recent group coaching session on story-based selling, I had asked all the attendees if they told stories during their presentations to help close the sale. I had coached on this material dozens of times before, asking this question each time, but what was new that day was what one adviser said, “I don’t tell them stories but instead I have them tell me stories.”

She went on to explain that the reason she did this was so that the prospect could eventually tell her the benefits that the individual in their story received from having a product or service. Once that occurred, the prospect often came to the conclusion that they could also receive the exact same value. In other words, they sold themselves on why they should buy.

Let’s take a brief look at how this process works:

  • Uncover the Prospect’s Experience: It’s important to begin by asking a great question to identify if the prospect has any personal experience or has known anyone who has had an experience with what you are about to recommend. The key is not to formulate your question around the product or service but rather about a situation or scenario that would prompt the need for that product or service. An example of what NOT to ask would be, “Have you ever known anyone who had long-term care insurance?” However, DO inquire, “Have you ever known anyone who went into a nursing home or assisted living?” Remember to make this question common enough to ensure that they will have some type of a story to tell you.
  • Invite the Prospect to Share their Experience: Once the prospect answers your question, invite them to tell you more. Some examples of good “cue” questions would be, “Why did they go to the nursing home or assisted living in the first place? How long were they there? What do you think it cost them to stay there? How do you think they paid for it?” Make sure you sprinkle in these types of questions to more readily “cue” the prospect to share more of the story and create a strong dialogue.
  • Uncover the Benefits and Tell a Story: After you let their story unfold, it’s time to help them uncover the benefits of the product or service that you will be recommending. Use questions such as, “Do you know what it currently costs for one month in a nursing home or assisted living situation? What do you think it might cost in ten to fifteen years if you or a loved one would need to stay in one? How would you pay for it?” At this point, explain your own experience of helping a client who was in a similar situation and the recommendation you made to them. Here is an example of how to make a seamless transition, “I am here to help assist my clients so that don’t have to worry about the cost and here is why…” Then, explain the product or service and how it has helped your current clients.
  • Ask for the Order: All that is left to do at this point is to help them come to the conclusion that they can benefit from this product or service just like your existing clients. Simply, ask a question such as, “Based on what we just talked about, what do you think is the best course of action for you?”

Why the Prospect Will Buy
If you have followed these aforementioned steps, the prospect will typically come to the conclusion that they want to buy because they want the same benefits as your clients. You have strategically led them to uncover their own need(s). In this case that was to be financially prepared for either themselves or a family member to go into a nursing home or assisted living facility, as well as the solution, with this example, long-term care insurance.

If you read this article and would like helpful techniques about how to create your own experience story: in reverse, email Melissa Denham, director of client servicing at melissa@advisorsolutionsinc.com to schedule a free complimentary consultation with Dan Finley.

Dan Finley

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

 

Daniel Finley presents an FPA webinar titled “Beyond the Production Plateau: The Solution to Your Business Evolution” from 2 to 3 p.m., EDT, June 8. Register for the webinar here


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5 Strategies to Connect During the First Appointment

Have you ever gone into an initial first appointment with high hopes of connecting with the prospect only to later realize that you did not make a connection at all? Maybe you have had several appointments like this over the course of your career. If so, you may have been missing one, a few or all of the five strategies for the first appointment process.

Let’s take a look at what those are:

  1. Get the prospect’s story: One of the most important things you can do to establish a connection is to genuinely be interested in learning about the prospect. People love to talk about themselves and the best way to encourage this is to strategically map out questions that will help them tell you their life story. If you can do this, they will end up explaining the reason for why they are looking for a new financial adviser and what is important to them about finding just the right one.
  1. Show them how much you care: It’s been said that people don’t care how much you know until they know how much you care. I believe that is true. Oftentimes, advisers try to win over a prospect by dazzling them with their stock market and/or product knowledge. Unfortunately, this tends to create more of a disconnect with a potential client. Don’t start the relationship off by telling them what you know but instead tell them how much you care about their situation. Chances are you have had other prospects and clients experience similar things. If so, then you should share their story with them. Do this and you will set a prospect at ease. They will feel comfortable that you are familiar with their situation.
  1. Understand the prospect’s pain points: As you listen to the prospect’s story and let them how much you care, you will probably realize that they have real concerns about their finances–these are what I call the prospect’s pain points. Typically, these are the reasons why they came to see you in the first place. If you truly understand their concerns as well and what is most important to them, and they know you understand both, it is much easier to build a connection with them.
  1. (Strategically) sum up the appointment: At some point, you need to strategically shift the conversation into summarizing what you have learned about them from your conversation. Try a phrase such as, “We’ve talked about a lot of things today and what I’d like to do is summarize what I have heard.” Then, proceed to state their situation, issues/problems and the long-term implications of not fixing those issues/problems. If you do this well, they will be much more inclined to hear what else you have to say because they know you have listened, and more importantly, have heard them.
  1. Sell your solutions to set a second appointment: Once a prospect gives you the signs or tells you they are ready, it’s time to sell your solutions to set a second appointment. Ironically, the strategy that I am about to explain isn’t so much about selling as it is about helping them want to buy. Simply, use questions such as, “How would it help you most if I put together a full financial plan so that you can understand how much money you will need when you retire, how much income you may have to live off of once you are retired and whether or not you are currently on course to accomplish those goals?” Nine times out of ten they will instantly start telling you they would value that by saying, “That sounds like something I have needed for a long time!” All you need to do is agree with them and then simply ask for the second appointment. “Exactly, then that is what we will do! Are you available this time next week to review the plan?”

Take a moment to think about what you have just learned. Are you using these strategies in your first appointment process? If not, you now know how.

If you are ready to strategically run your prospecting process, schedule a complimentary 30-minute coaching session with Dan Finley at Advisor Solutions by emailing Melissa Denham, director of client servicing at Melissa@advisorsolutionsinc.com.

Dan Finley

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

 

Daniel Finley presents an FPA webinar titled “Beyond the Production Plateau: The Solution to Your Business Evolution” from 2 to 3 p.m., EDT, June 8. Register for the webinar here