Three Essential Attributes

Unless you are prepared to either manipulate and cajole people into doing business, or drown in hapless mediocrity, you must master this principle.  Every potential client needs to answer in the affirmative the following three questions: Do I like him? Do I trust him? Do I find him competent? It is rare that a prospective client will move forward and hire you without going through this mental checklist. And, even if they do, the relationship will be weak and flimsy, collapsing under the weight of the slightest suspicion or mishap. Your job is to recognize that every prospective client needs to follow the same three step decision-making process, and then determine to help them walk through that process. Whatever system you are using to win new clients, it must incorporate a methodology for getting these three questions answered “yes” in the client’s mind.

Likeability

Everyone wants to work with people they like. Adopt a positive and soothing “bedside manor.” I once had an advisor working for me that was very bright. He was as quick a study as I’d ever met. His tenacity was unmatched. And, he had an interesting story. A wounded Viet Nam War veteran, private aircraft pilot, and father of six. But, his clients didn’t like him. He was abrasive and condescending, dismissive of their concerns, and he often brow beat them into submission. Eventually, he lost his securities licenses due to client complaints. It is not that hard to be likeable, but some people do need to work at it. Develop good listening skills. Smile warmly and often. Take a sincere interest in the people you are helping.  Put them at ease in your presence. Keep your humor respectful and in good taste. Be deferential, gracious, and hospitable. Don’t rush things. And, never use foul language. Remember, you may have all the skills to manage their life savings, but if you’re a stinker, you may never get the chance.

Trustworthiness

By far, the quickest path to earning trust is being open and forthright, telling the truth, and keeping your promises. From the very first encounter with a prospective client, use candor and forthrightness in your interaction. Don’t be flippant. Be sincere. Be sure that what you are saying is accurate and that you follow through on every commitment, no matter how insignificant.  Prospective clients are grading you on everything. They come in your door for the first time looking for a reason not to do business with you. Don’t give them one.

Disclose, disclose, disclose! I once worked alongside another advisor who asked me to join him in a client appointment.  He presented an investment, and the client made the decision in the meeting to make the purchase.  After the meeting, the advisor told me that the sale wouldn’t stick.  He said that he had not done enough disclosure of the investment’s features, benefits, costs, and risks.  He sensed that he had short-changed the process and that the client lacked the trust to move forward.  That afternoon, my colleague received a call from the client cancelling the transaction.

Don’t make the mistake in thinking that when a current client refers someone to you that there is a built in trust factor. A referral is merely an introduction to an interview, and you are the prospective employee who is being interviewed by the employer, the prospective client. You will need an approach for developing new client relationships that takes time and allows trust to develop.  If you move too fast, even with a referral, you will lose the chance to show your competence and win the account.

Competence

You must have the planning chops to win and sustain good client relationships. Competence requires training and experience, and for these there are no substitutes. An aspiring advisor should consider working in the practice of an experienced financial planner. Young advisors need mentoring, and they especially need training in the technical skills of financial planning. Earning professional designations such as Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) are excellent paths to technical competence. But, the freshly minted advisor will still require experience, and this is best gained under the tutelage of a mature professional. Competence is not only technical skill, but it is also the ability to understand current economic trends and help clients navigate them. Financial advisors must have technical skill and the wisdom to give sage advice. Your opinions must be cogent, relevant, timely, and well presented. It is one thing to be competent, but it is quite another to communicate competence. Credentials alone won’t do it. Competence must be demonstrated.