Five Research-Based Reasons Why You Lose Prospects

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“Sorry, but I’ve decided to go in another direction.”

When I was a financial advisor and heard a prospect utter those words, it felt like a dagger in my heart.

It was particularly painful when I thought our meeting went well.

I remember thinking: How could that happen? What could I have done to change that outcome?

Now I know there are five reasons why prospects decide to choose someone else.

  1. Lack of personal connection

Every conference I attend focuses on improving the technical expertise of advisors. Many believe demonstrating advanced technical skills is critical to winning over prospects.

Yet there’s compelling evidence that clients value interpersonal skills and emotional intelligence over technical expertise. A survey by the Australia-based Association of Financial Advisors identified interpersonal skills (like listening and empathy) as defining traits of successful advisors.

Among the clients it surveyed, 82% ranked these skills as paramount. Only 4% elevated technical skills and experience.

Extensive research demonstrates that when you emotionally connect with a prospect, the payoff can be huge.

News flash: Discussing how to measure risk in a portfolio (and similar investing subjects) doesn’t make an emotional connection.