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:

1. What does financial security mean to the client? This is different for everyone. Does your client want to retire early and build a boat? Or, are they looking for solutions for putting their kids through college?

2. What’s their situation? What is your client’s current financial situation? What picture are they painting for the future?

3. What concerns do they have about their financial future? Are they worried about having enough set aside for retirement? Wary of an uncertain stock market? Worried about covering health-care needs as they age? Understanding this will help you suggest the right options.

4. How knowledgeable are they about potential consequences if their concerns are not resolved? Make sure you know what the client already understands, what they think they understand and what they know nothing about.

5. What obstacles do they see as roadblocks to their financial success? Once you’re aware of potential roadblocks, you can navigate around them.

6. Do they know how to avoid or overcome these obstacles, or will they need help from a knowledgeable advocate? Some clients will need or want a lot of handholding. Others want to be in control and will be turned off if you try to guide them too much.

7. What are their top financial priorities? Clients will likely have several goals in mind. Understanding how they prioritize these goals will influence the options you choose to present.

8. How do they describe the difference it will make in their life to accomplish these priorities? There are as many reasons to invest as there are investors. Where some are interested in building wealth, others simply want the security of knowing they have something set aside for the future. Are your clients looking for dramatic lifestyle changes, or are they preparing for retirement?

9. What kind of relationship do they expect with their trusted advisors? Some people want information constantly, while others will tune out too much information. Make sure you know what each client prefers.

10. What do they see as the next step toward making progress on to achieving their financial goals? You’re there to offer guidance, but if the client has a direction in mind, that may influence the route you choose to take.

Hearing words is easy. We do it all the time. But listening for meaning to truly understand what your clients are saying requires more effort. And building an effective connection with clients depends on it. Once you’ve mastered these skills, you will be well on your way to building loyalty, improving word of mouth, and attracting more prospects.

Dave Thesing is a partner at IFC National Marketing Inc., an insurance marketing organization dedicated to supporting independent agents and financial advisors. Dave is also president of Bridgeway Learning Systems. He is skilled at training sales training and has coached thousands of individuals in sales, financial services, nonprofits and food service businesses.