Earn client confidence: an eight-point checklist

(February 2007) “If you have confidence in your lure, you will catch fish,” says one of the millionaires interviewed by Thomas J. Stanley in his book The Millionaire Mind.

There’s wisdom for advisors in those words. When it comes right down to it, confidence is the key to success in this business. Everything you do as an advisor, whether selecting investments, building financial plans, or creating a customized client service process, is all intended to earn the confidence of your ideal client. That confidence in hand, you can build the practice you want — with the clients you want.

I realize there are a number of coaches out there who tout a reality that just doesn’t jive with this, but it is certainly within your reality to corral a group and instill confidence about your ability to achieve for them.

So how do you instill confidence? When we work with our clients, we follow eight simple “confidence-boosting” guidelines designed to demonstrate to clients that you are worthy of their confidence, keep that confidence as high as possible throughout the course of your relationship and make clients want to communicate that confidence to friends and family.

Let’s review these eight guidelines, to show you clearly how you can make it easy for clients, prospects, and centres of influence to have confidence in you.

1. Be selective when taking on clients Be selective when trying to earn confidence. Know which clients you want to serve and who you would work well with. Clients who share your values, your investment philosophy and your interests will be much more confident in you than those who are constantly questioning your approach to business and life.

2. Know your target market Knowledge is a natural confidence-booster. The more you know about your ideal client, about what makes them smile and what keeps them up at night, the more you can anticipate the financial challenges and opportunities they face. When clients see that you know what they’re going through, they will quite naturally believe that you are the person who can solve their financial problems and enhance their lives.

3. Systemize wealth management For many people, investing can be fraught with anxiety. The haphazard, reactive approach that many advisors use in portfolio construction only strengthens this anxiety. On the other hand a well-laid-out, systemized approach to wealth management that clearly describes the process you use to build client portfolios, calms the nerves of risk-averse clients and encourages clients to see you as the capable steward of their wealth.

4. Systemize client service The same can be said of your client service. The more systemized and routine the client experience is, the more comfortable the client will be working within it. When clients know exactly what you will do for them, and under what circumstances, they no longer have any reason to fear the unknown. That’s a tremendous confidence-booster.

5. Articulate value Even the best clients sometimes wonder whether they made the right choice in picking you as their advisor. This is why you must constantly articulate the value that you bring to the relationship. Demonstrate your value to them by reminding them about what you’ve helped them achieve. Compare their former situation with what they are experiencing now. When clients can see the “proof” of your value, they will be much more confident about their decision to work with you.

6. Spend face time with clients It’s difficult for clients to feel confident in someone they never see. Make sure that each client in your practice has scheduled one-on-one time with you throughout the year. It’s simple advice, but in this age of voicemail, cell phones, and BlackBerries, it’s advice that often goes overlooked.

7. Develop strong relationships with centres of influence You can’t be everything to everybody. Even the best advisors can’t reasonably expect to handle all aspects of their clients’ financial affairs without a little help. Take the time now to develop strong relationships with accountants, lawyers, estate planning professionals and other centres of influence that could be brought in to help your clients if and when the need arises. Having a “deep bench” will help clients understand that your team can handle any financial problem that may come up. They’ll be so confident in this ability, they won’t use any other advisor.

8. Practise “Routine Excellence” Don’t rest on your laurels. Once you have a winning business in place, find a way to make it better. Ask your top clients about their expectations for your service — is there anything you could improve? Talk to peers and other industry experts about new products or service systems that you could introduce to enhance the service you provide. Show your clients that you accept nothing less than excellence in your business, and make that excellence routine.

Always remember: confidence is infectious. To earn the confidence of clients, you must be confident in yourself. When clients see calm, articulate professionals who are sure of their business processes and keenly aware of the value they bring to the relationship, clients will want that confidence working for them.

Jeff Thorsteinson is the creator of the YouFoundation, an organization that has helped investment advisors build world-class practices through innovative concepts, tools, and systems since 1993. With over 3,500 investment advisor marketing projects and business cases behind him, Jeff has become a well-respected speaker in the industry and over the last three years has delivered his practice-building programs to thousands of financial advisors throughout Canada. YouFoundation has recently launched its Cross-Canada Going UpMarket tour. For more information please visit www.youfoundation.com/events/goup2006.

Contact strategicadvisor@youfoundation.com or 1 800-223-9332, ext. 1, for more information about YouFoundation, or visit the website at www.youfoundation.com.

(02/05/07)