Do you watch TV commercials for award shows and realize you don’t know any of the stars they mention? Do you find yourself sticking to familiar TV series, not trying out new ones? Have you reached a comfort level with technology and have no intention of going any further? If you answered yes to any of these questions, you might be living in the past. It might not be a bad thing.
Living In The Past—An 11-Question Quiz
As a financial advisor, you have a client base. You also seek to attract new clients. How you come across affects retention and new client acquisition.
1. Do you wear business dress? For men, it’s a suit and tie. There is a parallel wardrobe for women. Entire fashion firms cater to this market. Are you always well groomed?
Verdict: Living in the past is good. In our increasingly casual world, taking your dressing cues from Perry Mason or Hart to Hart episodes can come across as living in the past. Dressing conservatively shows a sign of respect for the client and their money. It also implies you aren’t a risk taker. I heard a fashion editor explain, “Always leave the house dressed as if you will run into your high school rival.” He mimicked a voice, “Guess who I saw today? She looks terrible!”
2. Is your comfort with technology limited? You embraced e-mail. You will text if you must, but it’s not a comfortable channel. You prefer talking with people over the phone.
Verdict: Living in the past is bad. You must be responsive to clients. Learn and use the preferred communication channel for each client. You want them to be responsive and they expect the same from you. You cannot say: “I don’t text.” As an advisor, you must be up on every channel and know your firm’s rules.
3. Are you casual with everyone? Do you start relationships on a formal basis, asking how the client prefers to be addressed? Professionals might prefer their title, like doctor or professor. Some people assume it’s OK to be on a first name basis with everyone.
Verdict: Living in the past is good. When you start off formally, you are showing respect. You might ask how they prefer to be addressed. If you start off with their first name or a nickname, you might inadvertently create ill will.
4. Do you have favorite products? There are advisors who still stick with stocks. Most major firms guided advisors into the managed money space. You might have a suite of products that are comfortable, like stocks, mutual funds and managed money.
Verdict: Living in the past is bad. Clients want to know about cryptocurrencies. ETFs are hugely popular. Covered call writing can be an income strategy. You must know about all new product areas, if possible. If a client asks about Bitcoin and you say: “I don’t know anything about cryptocurrencies,” they will find another advisor who does.
5. Do you talk about succession planning? You’ve been in the business for years. It pays well. You intend to go out feet first. Your clients have been with you forever.
Verdict: Living in the past is bad. Your client might be looking forward to retirement. You’ve helped prepare them for years. They may be wondering when you will retire. They don’t want to need to find a new advisor if you broke the news suddenly. Prospects wonder if this is a long-term relationship. You are risking losing business.
6. How often are you on social media? The firm said, “Everyone get onto LinkedIn.” You set up an account. Your profile page has a blank space after: “Your most recent activity for the past 90 days is shown here.”
Verdict: Living in then past is bad. You need to be active on social media. Your current clients might not be active, but your future clients are active. If your current client dies, the assets will be inherited by younger folks who are on social media. You need to be where they are.
7. Can you hold a conversation about popular culture? This refers back to the start of the article. When the Grammys, Oscars or Emmys are talked about on TV, you don’t recognize a name. Most of the actors you can name are dead.
Verdict: Living in the past is bad. Your clients want to relate to you and vice versa. How can you add new clients if you consider their world an alien environment where you have no place? Muttering about tattoos isn’t going to help either. You need to learn about popular culture. Fortunately, sports is an easier category.
8. Do you tell your manager “I grow my business through referrals?” This is often code for “I’m done with prospecting. I’m coasting.” Your book is like a bathtub. Water comes in the tap and goes out by the drain. The tap needs to be faster than the train. You need an active, measurable prospecting strategy.
Verdict: Living in the past is bad. You can’t run your business today without a way to add new clients. You can’t depend on reassignments. There must be an activity you do regularly.