One thing is for sure, with the recent market downturn, it's become a lot easier to keep up with the Dow Joneses.
Jokes aside, like many of you I received numerous calls and e-mails from clients, family members and the media about the market's recent downturn. I told them I've been sleeping like a baby every night ... in other words, waking up every hour crying.
But seriously, folks, during market corrections like this, advisors have a perfect opportunity to break away from all the economic news and turmoil and develop a deeper, more meaningful relationship with clients instead of one based solely on investment performance. Adding personality to your practice and client relationships, though, must be done in the right manner or it could send the wrong signal and even damage relationships. There are two simple ways to accomplish this: 1) sharing a personal story that has had a profound impact on your life, and 2) adding a dash of humor to lighten the mood.
Personal Stories
Sharing a personal story is a great way to engage your clients, and a chance for them to see more of what makes you tick. Doing so opens a path of communication for them to likewise share an important aspect of their lives, and who knows, they just may share your story with others (think referrals).
A great way to uncover a personal story to share with clients, putting them at ease and shedding a more personal light on you, is to think about:
Events and situations that led you to this industry, and why you're still in it;
Financial, investment and retirement planning lessons you have learned the hard way; and
Seemingly impossible personal or professional situations you have overcome.
Take the lessons learned and use them to illustrate the attitude you bring to the office every day, the way you service clients, or how you deal with the adversity brought on by yet another media-frenzied market collapse.
But storytellers beware. Make sure your story creates the right impression. Don't expose yourself to concerns about your background, capacity or future. For example, you may want to avoid describing the lessons you learned as a D+ student or from a drunk-driving ticket, divorce or bankruptcy. I'm not saying these aren't great stories or lessons learned, but play it safe when sharing experiences. Save these stories for your autobiography, the E! True Hollywood Story or an A&E special.
One personal story I share with clients is about an opportunity I had early in my career to meet with my first millionaire, a 78-year-old widow. I was certain this meeting would reveal some enlightening information that would set me on my own path to riches. As our conversation progressed, I was finally able to ask the million dollar question, "What was the best investment you ever made?"
Expecting to hear she had invested heavily in real estate, knew Sam Walton or had kids hooked into Microsoft, I was shocked when, without hesitation, she replied, "My Craftmatic Adjustable Bed. It always brings me a great night's sleep." That brought me down to earth in a hurry. I should have asked if she owned the Clapper, too.
It helped me realize that life-at any stage-isn't defined by money, investments or net worth, but rather by the Craftmatics-the things you see and do every day that keep you happy and fulfilled.