Most practice management experts agree that the best advisor-client relationships are based on trust. If that exists, a client or prospective client is less likely to place importance on what would otherwise be a long list of determining factors, including the advisors’ investment solution options, the quality of the technology offerings and even fees.

Mindful of this, some advisors try hard to seem “folksy” during their interactions with clients and prospects in an attempt to create an aura of authenticity. Investors, they believe, want to do business with a real person, someone, in other words, they can trust. But there’s a fine line, because what one person finds authentic another might say smacks of insincerity or unprofessionalism. 

All of which brings me to what a mentor said to me years ago: “Every time you get the opportunity to talk to a client, you either gain credibility or you lose it — there’s no in between.”

To this day, it’s the best, most sage advice I’ve ever received about this industry when it comes to conversation killing phrases with clients and prospects, and how advisors can best avoid them.

In a special, invitation-only session at the annual national meeting for HD Vest Financial Services, CONNECT16, held in Washington, D.C., a panel of experts among independent advisors, broker-dealer executives and industry coaches discussed how independent advisors can approach each conversation with a prospect or existing client, paying special attention to the specific phrases and words they use.

While many of these phrases may seem harmless when they come out of your mouth, a poorly selected word has the potential to stifle any exchange and, thus, do damage to your credibility.

Here are some examples:

“Is there anything else?” or “Is that it?” Though a common way to end a meeting or wrap up a phone call, not only could framing a question like this be considered impolite and too casual, but neither is likely to induce much of a response. They are essentially away lines. Instead, try “What else would you like to discuss today?” It’s open-ended, which is both an invitation to speak more freely and a subtle reminder that they have your undivided attention for as long as they need it. If the client or prospect has been looking for an opportunity to have a broader conversation, it is during these unexpected times when it can happen, making it easier for you to gain a greater appreciation of what it will take to best serve them moving forward.  

Questions that begin with “why.” Think about it: The word “why” almost always has the potential put someone on the defensive. In a primal way, it goes back to childhood. "Why didn’t you take out the trash?!" Instead, use “what” or “how.” If, for instance, there is a question about why a client or prospect’s previous advisor placed them in a particular investment vehicle say, “What were you hoping to accomplish with this investment?” The alternative — “Why did you do this?” — could be considered patronizing or make it seem like you are questioning their intelligence or judgment.

First « 1 2 » Next