Being curious is more important than being right. This statement is a paraphrasing of many of the world’s greatest thought leaders including Albert Einstein, Simon Sinek and Adam Grant.
As demographics, voices and beliefs change across industries, our world and what people need and want is evolving more dramatically than it has in decades. The status quo of “the way things have always been done” is a term that is no longer broadly accepted. And those who are in this camp are becoming more frustrated every day.
For me, and the millions of your potential clients out there, it is thrilling to see these changes come to fruition.
After 25 years in the financial industry and working with thousands of people, I am finally seeing:
• behavioral finance and financial psychology taking hold;
• the desire of advisors to take time with clients and prospects to create deeper relationships; and
• peers become more comfortable showing vulnerabilities, and inviting clients to share theirs without fear of judgment.
There are some of us who have practiced this way for decades — or did so to some degree — at our own expense. But no longer.
This shift might be happening because more women and younger people who crave this level of trust, engagement and transparency are becoming investors. Regardless of the reason, this change is happening, and I’m overjoyed!
A 2020 McKinsey & Company report on the future of financial planning noted, “In the next ten years, advisors will gradually shed their role as investment managers and become more like integrated life/wealth coaches who advise clients on investments, banking, healthcare, protection, taxes, estate, and financial wellness needs more broadly.”
This article is going to highlight a few of the best practices specific to HOW to implement this mindset for you, your clients, and your prospects. It is never too late to start!
Ross Marino, founder & CEO of Advisor2X and an advisor for 30 years, and I have had several fabulous conversations. A few weeks ago, we were talking about how he is re-creating his conversations with clients, and they are absolutely loving the process. I bring this to your attention as many advisors that I have worked with over the years ask me, “Julie, what about my clients who have been with me for 5, 10, 20 years? Are they going to think this is odd and ‘why now’?” And I can assure you with confidence, from the hundreds of conversations that I’ve had with advisors and all financial professionals, clients are embracing it with vigor and an enthusiastic engagement. And prospects love it even more.
Dr. Emily Koochel, a senior financial education consultant for eMoney Advisor, recently wrote in an article, “The Financial Planner of the Future,” published in Advisor Magazine that consumers expect personalization. Research by eMoney has shown that consumers are seeking financial advisors who “factor in all aspects of their lives, including understanding their financial stress and working with them to find solutions to lessen it; provide coaching to help promote positive financial behavior, and actively engage them in the financial planning process.”
How can we meet these needs and desires?
Start with ourselves
We will be far more effective and confident in leading our clients and/or prospects to be authentic and work toward feeling safe being vulnerable with us if we have done this work ourselves. For example:
• Becoming self-aware through assessments, reading, therapy.
• Think through our own experiences with money growing up. How do our “money stories” lead to our ow behavior and the decisions we make for ourselves and our family?
• Make sure our mindset regards the different perspectives and values of others as just that, different, not right or wrong, better or worse.
Until we take this approach, we cannot truly provide a safe, judgment-free zone for our clients. Without it, trust, engagement and loyalty will be lacking.
Be curious
Curiosity and the desire for discovery needs to be consistent. You can get help with discovery questions to ask your clients by searching online — there are several amazing sources. Such questions will provide you with a foundation for how to get to know clients on a deeper level. Don’t think of asking such questions as invasive. On the contrary, it builds greater engagement and trust.
Be a consultant, not an expert
In a recent article in Financial Advisor, Russ Alan and Jerry Prince discussed different approaches to converting prospects to clients. Most advisors use the “expertise narrative,” when research shows the “consultative approach” is far more effective. When an advisor uses the consultative approach, the prospect becomes the center of the conversation, they write.
Be proactive
Here are other techniques I find helpful in building strong client relationships:
• Check in with clients on the big things and the little things.
• At least once per year, ask them how they are feeling about the work you are doing together. Are there things they would like to be done differently? If so, follow through.
• If they are happy, sincerely express your gratitude and ask: “Is there anyone that they care about who is not receiving the level of support that they deserve? Not receiving answers or guidance?” If so, share that you would love the opportunity to help them.
As you begin using these techniques, it is important to “read the room.” Make sure to check in with your clients and prospects as you have these conversations. Gauge how they are feeling. If you sense it is too much too soon, scale back. If they are good, keep going. Yet please, do not give up.
Please know, if you are feeling a bit uncomfortable or anxious as you read this article, trust me, you are not alone. Just know, there are so many fabulous people to help you evolve and embrace this level of consulting.
If you are a financial professional and you would like to connect with others who are exploring and successfully implementing these practices, please join us at the SHIFT Conference in Orlando, Florida March 24-25th! And by the way, SHIFT is named by Kitces.com as The Best Behavioral Finance Conference for Advisors in 2024. Hope to see you there!
(Rethinking65 readers can get a $100 discount on registration by using the code RETHINK65.)
Julie Johnson is the CEO of XY communication and a leading authority on intergenerational and gender communication. A former UBS senior vice president recognized by Barron’s, she has devoted her career to helping professionals and teams build trust, engagement and loyalty.
