1. AdviserQuest Copyright 2010
Evolving Beyond Investment Advice “Engaging Clients Successfully and Creating Lasting Value in a Fee for Service Practice“ May 28, 2010 Presenter: Leyla Banaei
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2. What you will get out of this session:
Why we need to become more ‘consultative’ in our approach and advice
An understanding of what consultative advice is and how you can get started
5 conversations you can apply immediately to make your advice consultative
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3. Impacts of Bowen’s FFA reforms
Price of Advice
Annual client agreements
Simpler Disclosure
=Change in business models
=Cost to your business $$$
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4. Reducing the impact on your business
Segmentation: one size does not fit all
Pricing: cost of advice
Process: backend/Frontend
Value: 80/20 Rule
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5. Engaging clients successfully in this new environment
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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6. Your client engagement process
a)What is your client engagement process now for new clients? b)How are you demonstrating ‘value’ to these clients throughout this process?
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7. Communicating to your clients: The 80/20 Rule
Reliability
Trust
Reassurance
Comfort
Quality
Education
Professionalism
Sounding board
Financial plan
Investment portfolio
Backend business processes
Review meetings
Products & services
80% -Value
20% -Process
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8. What is the consultative advice process?
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9. Engaging clients successfully with consultative advice
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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10. Understanding effective communication
Visual
Auditory
Kinaesthetic
Pictures
Words & tone
Concepts and ‘gut feel’
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11. Conversation #1: Find out what they know about financial advice
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12. What do your clients know about financial advice?
Their fears
Their expectations
Their knowledge
Their perception
“Help me understand your process for financial advice…”
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Question #1: “What is your experience with financial advice in the past?”
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14. Conversation #2: Educate them about your advice process
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15. Educate them about the advice process
Give it context
Communicate your unique value
What’s in it for them?
Use visuals
Use real life stories and examples
Help them connect
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Question #2: “Would you like me to take you through and give you an overview of our advice process?”
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Make a visual impact
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18. Anchoring clients into the ‘Discovery’ process
Strategies/Vehicles
Where you Desire to be
Where you are NOW
Risks/Hindrances
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The more the client understands the process, the more engaged the client will be and the more they will want to participate.
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20. Engaging clients successfully with consultative advice
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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21. Conversation #3: Find out what’s most important to THEM
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What Questions do you ask your client’s to clarify what is important to them?
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What are Values?
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24. Question #3: “What is important to you about _____?”
Clarifying values
Question #3: “What is important to you about _____?”
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Values are:
“Why” they do what they do
What motivates them
The direction they are always moving towards
The core self
People are happiest and most content when they are living in line with their values
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27. Client’s goals and objectives are based on their values
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28. Some examples of common client values:
Family
Security
Freedom
Accomplishment
Adventure
Good health
Fun
Flexibility
Love
Achievement
Peace
Contribution
Faith
Frugality
Loyalty
Structure
Passion
Service
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30. Engaging clients successfully with consultative advice
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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31. Conversation #4: Relating their values to your advice
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32. Help them connect the dots
Summarise goals & values
Link each of their values (emotional) to a specific advice solution
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33. Where to start: Asking powerful questions
They usually begin with the word ‘What’
Are oriented towards goals not problems
Lead the client into the future (solution mode) rather than focus on the past (problems mode)
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34. Going deeper with challenging questions
Asking Challenging Questions
Respect
Tone
Voice
Body language
Self belief
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35. ‘Chunking’ ideas Chunk down (specific outcomes) Chunk up (values)
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36. Question #3: “What is important to you about _____?”
Chunking up: to articulate values
Question #3: “What is important to you about _____?”
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37. Chunking down: Getting more detail
Question #4: “What will help you to get [insert Value]?”
Question #5: “what needs to happen for you to have
[insert value]?”
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40. Conversation #4: Relating their values to your advice
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41. Your advice/ expertise Client’s Issue Client's Values
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42. Sample conversation:
“Based on what you told me about [issue], I think that you would get value from our advice by using [advice/strategy] for helping you [insert benefit/outcome of advice] in the way that will assist you to [their values].
Your advice/ expertise
Client's Values
Client’s Issue
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43. Engaging clients successfully in this new environment
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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44. Coaching your clients beyond investment advice
The Financial Confidence Analysis Tool
(FCAT)
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Where to use the FCAT
Strategies/Vehicles
FAMILY
HEALTH
Where you Desire to be
Where you are NOW
LIFESTYLE
FINANCES
PROTECTION
Risks/Hindrances
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Coaches set expectations and hold their clients accountable…. Conversation #5: Setting expectations
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47. Question #6: “What are your expectations from us working together?”
Setting expectations
Question #6: “What are your expectations from us working together?”
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Setting expectations
Question #7: “ if we were to meet on this day, five years from now, and we look back on today, what needs to have happened in that time for you to be happy with your progress?”
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49. Engaging clients successfully with consultative advice
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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50. Evolving: Being the centre of your clients financial lives
Coach vs. adviser
Leadership
Accountability
Value
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51. Tools you will take away
Understanding effective communication
Understanding client psychology
Connecting on an emotional level
Coaching vs. Advising
Re-examining your self belief/self image
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52. 5 Crucial conversations to integrate into your process
1.Find out what they know about financial advice
Q: “what is your experience with financial advice?”
2.Educate them about your advice process
Q: “May I show you what our advice process is?”
3.Find out what’s most important to THEM
Q: “What is important to you about____?”
4.Relating their goals to your advice
Questioning skills/chunking information up and down
5.Setting expectations
Q:”What are your expectations from us working together?”
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53. Your Questions & Feedback
“Whatever the journey it is the ‘feeling’ that they are left with after interacting with you, that is what they will remember, and that is the most important.”
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