Many advisors have a multi-step process to transform a prospect into a client. It usually involves learning about the prospect, establishing their risk tolerance, developing a financial plan and presenting a proposal, seeking the prospect's approval. This can work quite well when the prospect is a linear thinker, moving from step to step.
But what do you do when the prospect does not want to travel along the path you have laid before them?
What Will It Take…?
This strategy reminds you of car dealers in a showroom. No one likes car dealers. If you know any in your local community, you know they are usually very successful. Perhaps their techniques are more effective than we realize.
One of their techniques is to ask the question: “What will it take to get you to drive home in a new car today?”
Your version might be “What will it take for us to agree on a strategy today?” This is not a closing approach you would lead with early in the conversation. It is for when you encounter a roadblock: The prospect isn’t responsive to trial closes, says no or let me think about it at the end of your proposal. They might do their own financial planning or assume it is a giveaway, included as part of the sales process. Here is another scenario: They have been through the planning process before and had a bad experience with their previous advisor.
The purpose of the strategy is twofold:
• Encourage the prospect to reveal their buying criteria or expectations
• Begin the negotiation process
The client might have service expectations:“How often will we be in touch?” They might be looking for a certain yield. That might be likely because of our rising yield environment. They might be cost conscious about fees. “You want 1%. I will not pay over 0.75%.” Now you know. This helps because they have bought in, but now you need to get over hurdles.
I Respect That
A New York advisor taught me about this approach. You have a prospect you know personally. They have been through the information gathering and planning process. When you close and ask for the order, they say: “No. I really do not want to do this.” Rather than argue, you respectfully accept their decision.
Hmmm…whay did you do wrong? Noting. You followed all the correct steps, and you made a recommendation consistent with their needs. They did not accept it.
This advisor follows “I respect that” with “It’s important because someone else helpful may offer you this product and you didn’t know about it. You may wonder why I didn’t tell you.”
That might sound odd, but you need to consider human nature and what happens next. The advisor identified a problem. They know the prospect or client. Despite the close connection, they still said no. But the problem didn’t go away.