3 strategies to help confused clients

You’re talking to a client but his eyes glaze over – a common sign he may be confused. Jay Nash, vice president and portfolio manager, Roberts Nash Advisory Group, National Bank Financial, offers these solutions when dealing with three types of confused clients.

1. The hands-off investor

These clients aren’t interested in the markets. But advisors still have to explain what they’re doing.

“I tell them, ‘On occasion I get so absorbed I slip into terminology you won’t understand. If this happens, please stop me,’” Nash explains. Say you use the term ‘QE tapering.’ Some might not get it, but “don’t dive into an explanation. Instead, ask if he wants you to explain it because he may not be interested.”

2. The “expert”

Some clients think they know everything about investing. But Nash advises caution when speaking to them because they may take offence.

Instead, frame explanation as though you’re simply reiterating something the client already knows. For instance, say, “Of course, when the Fed pulls back on QE…” and then launch into an explanation. This allows you to get the point across without bruising your client’s ego.

3. The engineer

These are highly educated clients with technical backgrounds.

“They want to learn what they don’t know. If you say something they don’t understand, be prepared to explain it in detail. And you’d better know what you’re talking about because when they get home they’ll do their own research.” Read more: Deal with client confusion>