First Person: Lessons from unsuccessful prospecting

(July 2008) I was delighted when a client referred his former colleague (I’ll call her Clara) to me. Not only was this a vote of confidence in our relationship, but Clara sounded like an ideal prospect for my business. Both her sociodemographic profile (late 40’s, self-employed, married to a professional, two high school–aged children) and her financial profile (strong household income, investable assets over $500,000, looking for comprehensive financial planning and an investment management strategy) matched my preferred target market.

We met, talked about her needs and objectives in finding an advisor and then agreed that I would send her a financial planning workbook to complete and return. Several weeks later, I received Clara’s completed workbook and prepared a financial plan to present to her and her husband, whom I’ll call Bill.

This meeting did not progress well. The chemistry that Clara and I had experienced during our first encounter did not reoccur. Due to conflicting schedules, I wasn’t able to meet Bill beforehand, and my efforts to establish a rapport with him during this meeting were unsuccessful.

At the meeting’s close, Clara and Bill said they would take the financial plan home to discuss further, not an unreasonable request. But they were also quick to add, “Don’t expect an immediate response as we’ve also been referred to another potential advisor.”

It was at this point that I was fairly sure that this prospect was a lost opportunity.

Despite several attempts to resurrect contact, I did not hear from Clara and Bill again. While disappointing, this does happen in our industry, and one needs to reflect on the lessons learned, make appropriate adjustments and then move forward. So, what lessons did I derive from this experience?

In hindsight, considerable time passed between the initial meeting and the presentation of the financial plan. While the holiday season got in the way, from the outset, I should have clarified their sense of urgency by simply asking, “What is your time frame for getting this completed and for making a decision?”

Normally I interview prospects during a “discovery meeting” and complete the workbook together with them. In the case of couples, I like to meet with both of them together.

In this case, I deviated from my usual process because Clara was pressed for time. I should have emphasized the importance of getting acquainted with Bill before the presentation and not felt pressure from Clara to rush the process by skipping necessary steps. Had I followed my regular process of interviewing both spouses to discover and clarify their goals, objectives and current situation, I would have been in a stronger position when meeting with them together.

The final lesson I learned from this experience is the significance of a streamlined practice based on procedures and checklists. At the time, I didn’t have a written template outlining the detailed, sequential steps that reflect my process for attracting prospects and acquiring new clients.

Unfortunately, this desirable prospect got away. But today my practice is more efficient because I use a checklist that reminds me of my process — and I make sure I follow it. This keeps me on track when meeting new prospects.

My experience with Clara and Bill reminds me how crucial it is to meet prospects face-to-face to gather accurate and complete information to develop a valuable and relevant financial plan.

Beverley Moir is a senior investment executive and financial planner with The Moir Team at ScotiaMcLeod,Toronto. ScotiaMcLeod is a division of Scotia Capital Inc., a member of the Scotiabank Group. Member Canadian Investor Protection Fund (CIPF). Visit her website at www.bevmoir.com. This article is for information purposes only. The opinions stated are not necessarily those of Scotia Capital or The Bank of Nova Scotia.

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