“What did they know and when did they know it?” It’s very hard to prove a negative. Politicians and corporate executives often have a difficult time explaining they didn’t know about something. One of the valuable benefits you bring to the client relationship is confidentiality. How do you prove you don’t talk about people’s finances?
Why is this important? This concern might put the relationship at risk. It’s not uncommon for a local person, having achieved success in business, to move their personal accounts away to another town where they aren’t well known. They assume people in the local office talk about their clients.
Here’s another concern: The advisor volunteers at a nonprofit. The fundraising committee is talking about who they should approach for large donations. The client is concerned the advisor will volunteer their name because they know the size of their investment accounts.
Four Strategies To Sell Confidentiality
How do you sell a negative? Promote something you don’t do? Here are four approaches:
• Strategy #1: Lean on your past: The client or prospect expresses concern. They wonder if you talk about your clients. Here’s how your response might sound: “We’ve known each other for five years. We are active in the same social circles. We know lots of the same people. It’s conceivable some of them might be my clients. Have you ever heard me talk about anyone in that context? (The answer is no.) If I haven’t talked about any of my clients in five years, it’s highly unlikely I would be starting now.”
• Strategy #2: Answering “How do you know each other?”: You don’t lie. People can put you on the spot. What happens when the only connection is the client relationship? If you said “I can’t tell you,” they would probably interpret that as an admission. They might even tell the other person. “I know you are her client. I asked and she said as much.” Here’s how you might explain to your client how you would hypothetically handle that situation: “As you know, I can’t talk about client relationships. If someone brings up your name and asks how we know each other, I answer ‘We met downtown a few years ago.’” If you belong to the same club or serve on the same nonprofit board, that could also be an acceptable answer.
• Strategy #3: We are friends. You can tell me, just this once. Friends often think rules don’t hold between each other. Suppose your client was marrying into another family and wanted to know mow much money they had. They know the family has an account with your firm. Maybe it’s the logoed golf umbrella they use. Could you just take a peek and let them know? It sounds so innocent. Obviously, you aren’t admitting to any client relationships. You might frame your explanation by reversing the tables: “If another close friend asked me how much money you had, would you be comfortable with my confirming you are a client and giving them a number?” They will likely immediately recoil and say: “Absolutely not. Our financial relationship is private and I’m relying on you to keep it that way!” Now they have their answer.
• Strategy #4: The referral suggestion: We want happy clients to send referrals. This is an opportunity to position confidentiality. After a good portfolio review meeting, remind them: “As you know, I am bound by confidentiality. I’m not allowed to tell anyone you are my client or how well you are doing. You are not bound by the same rule. You can tell everyone and as many people as you want we work together. I encourage it!” It reminds them you welcome referrals.
Think of client confidentiality as a product. How would you sell it?
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, Captivating the Wealthy Investor is available on Amazon.