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You’ve seen it before, probably too many times to count. An investment firm rolls out a new hi-tech innovation with great fanfare and breathlessly tells its customers that this shiny new thing will revolutionize the investing experience.
And then… things pretty much stay the same.
Yes, it’s vitally important to stay up to date with technology and provide your clients with the digital tools they need and want.
But how much of that matters to the customer, and how much is just a slick dog-and-pony show to attract new business? Your honest answer reveals a lot about your company and your approach to the people whose wealth you manage.
We are a service industry. Before we try to sell clients anything, we need to stop and consider what they want.
Too often, we push features that we think clients want.
Let’s hit the “pause” button and change the perspective. Let’s switch to the client’s POV.
Clients are not shy about letting us know what they want. And it’s unbelievably simple and easy to understand. One survey after another finds the same result: A financial advisor’s skills, knowledge and behavioral coaching are consistently the most desired features of the client’s relationship with their advisor.
Clients want to feel confident that you know your business when they entrust their money in your hands.
That’s because financial investment comes with uncertainty, which makes a lot of folks uncomfortable. It’s natural that clients seek the reassurance that they’re getting sound advice from a solid professional.
But ask yourself this: Are we doing our best to provide them the reassurance they crave? Are we more focused on proudly showing off the latest e-contraption than giving them the confidence that leads to peace of mind?
Our clients turn to us as advisors to help them establish a working understanding of their highly complicated, constantly changing, and ever-uncertain financial future. But are they getting that education?
Consider how we market ourselves. Too many times, we highlight investment strategies. When we sit down with clients, we showcase our investment savviness and point out our mastery of the intricacies of the economic markets. So far, so good. We know clients value that knowledge and expertise.
But it isn’t what they want. People are looking for one thing above all others: experience.
With the stakes so very high to them personally, they’re looking for someone who knows all the mistakes their competitors are likely to make. They want a professional who has seen bear and bull markets come and go and whose clients were still standing after each. When your personal wealth is on the line, you want someone who can draw on a broad and deep pool of experience.
Don’t lead off your initial meeting by recapping your investment management and strategies. Sure, you’ll eventually want (and need) to talk about that. But it’s not a good marketing strategy. And it’s certainly not the chief thing our clients want to hear.
Put yourself in their position.
They’re seeking comfort and clarity. They’re looking for someone who can help them make sense of a system that is byzantine to them. They’re looking for someone who will bring structure, clarity, and organization to a massive complexity that overwhelms them. They’re eager to hear a plan, to get a roadmap for helping them navigate their way through these uncharted and intimidating waters.
They don’t want to hear unrealistic optimism, either. They want a proposal is systematic and defensible. They also want a plan and a vision they can believe in, aligned with their desires and beliefs. They want to take the journey alongside those who are a comfortable fit.
Those things are essential to the client because the back of their mind is filled with countless pressing questions, all important and legitimate. For instance, how much will food and utilities cost 20 years from now? Where (and with whom) will I be living? What will my health be like then, and how much should I set aside for medical needs? The list goes on and on because the variables are endless.
It's impossible to answer those questions today, of course. And deep down, the client knows you can’t answer them. No one can. But you must understand they weigh heavily on the client’s mind.
When you look at it from that viewpoint, your pitch changes. When you understand the client is way more concerned with answering, “Where will I be 20 years from now?” than in being dazzled by your mastery of the financial system, you realize a new approach is in order.
Lead with focusing on the things our clients are turning to us for – comfort, clarity, and a forward-looking strategy tailored specially to them – rather than what we want to lead with, such as traditional investing strategies, the markets, the economy, and the sheer tidal wave of data that’s now available at our fingertips.
I’ve seen many firms lead with great “why’s” and visions of what they deliver for their clients. But one thing stands out from those early days, and it would work well for all of us today.
It was something I call SWAN – sleeping well at night. That was what I lead with. I want my clients to SWAN at all times. Because of that, my conversations always lead off with making sure the client knows I understand their worries and the challenges they face. Then I pivot to talking about how to craft a strategy that helps them achieve SWAN.
And that conversation begins with asking where they want to be in the future and working back from there. I set the goal and paint the vision of what they want their future to be. What is that ideal retirement? Where will they want to be? What will they want to do? And I set the stage with the understanding that details could change over time. But I need somewhere to start.
Financial planning is a work in progress. It is an art, not a science. That’s why I start by asking the client how they want to feel. How much do they need to save today? Where do we need to invest? Then I add to that a personal experience strategy.
Once I have those answers, I put together their plan based on that information. It is centered on wanting people to SWAN, not strategies or philosophy on investing.
Go back to what clients genuinely care about. Sell what is most important to the client. Clients look at how they can reach their goals and how advisors help them succeed financially in the most efficient manner possible.
As an advisor, you can strengthen your client relationships by recognizing and acknowledging what your clients value most from you. And that will go a long way in giving them SWAN!
Matt Reiner is a CFA, CFP®, and partner at Capital Investment Advisors, a $2.8+ billion RIA in Atlanta. Reiner is also CEO of Wela Strategies, a sister company to Capital Investment Advisors, and is the founder and CEO of Benjamin™. Benjamin is an AI technology created by Reiner after seeing the gaps in technology used in his own firm. Reiner's true passion is using his vast experience to coach other advisors across the country, helping them evaluate their firms' practices and find the best strategies for future success. To reach Matt Reiner, visit www.MattReiner.com.
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Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
