A recent study found that 86 percent of people prefer to shop at stores that provide an experience that aligns with their needs and interests. While the study looked specifically at retail shopping, there’s a lesson here for financial advisors: People like things that feel like they are made for them personally. Add to this the fact that more than 60 percent of people say they would pay a higher price for quality service, and it’s safe to say that the experience you provide for your clients is as important, if not more, than the type of policies you offer.
Providing a tailored experience takes work, especially when you have a diverse client base and offer multiple products. First, you have to build a connection that goes beyond small talk to truly understanding who your clients are—what is their current situation and what goal do they want to reach? Establishing that kind of connection allows you to better understand what options make the most sense for each client, and it will help them as they explore which path will lead them to their financial goals.
The good news is, getting to know your clients well enough to tailor solutions to their specific needs can be one of the most rewarding aspects of being an advisor.
So, how do you build that kind of connection? It starts with paying attention to what your clients are saying. Sounds easy, right? Not so fast. The type of listening required to fully connect with clients may not come naturally until you learn to organize what you are listening for and understand how to listen effectively.
More Than Words
To start, consider that the words people say account for only about 7 percent of communication. According to Dr. Albert Mehrabian, author of Silent Messages, the bulk of meaning comes through in nonverbal cues such as body language (55 percent) and elements of tone, such as pace and volume (38 percent).
Start training yourself to watch and listen for the nonverbal cues and elements of tone that will help you better understand your clients. Pay attention to facial expressions and posture. Make note when people make eye contact and when they don’t. If a client says they like an idea but sounds uncertain and looks uncomfortable, make sure you attend to all parts of the statement before moving ahead.
As a bonus, clients will notice when you’re more attentive to what they’re saying, and they’ll appreciate your focus.
Organizing what you’re listening for is also important. Entering a conversation with an understanding of what you need to hear allows you to cut down on the number of questions you ask and better incorporate what you’ve learned about the client into questions you ask to create a complete picture of their situation and needs. It also helps build trust, because your conversations will naturally focus on their needs.
While every client is different, there are a few key questions to have in mind during these conversations. To start building real connections, listen for the following: