The Puf Principle

(September 2007) Psychologists say the single greatest need of a human being is to feel appreciated. Similarly, I suggest that your clients’ biggest need is to know that you care. The topsy-turvy markets of the past month have provided each of you with an immense opportunity to demonstrate this care.

Many of our clients have reached or will soon reach retirement age. They do not want the stress or the concern that the current market phase creates for them. They would rather slow down and put their feet up. They would rather focus on the happier things in life.

As well, many of our clients are not yet approaching retirement but they also have been concerned and they need to be reassured — their questions need to be answered and it is our job to ensure that any doubts they have are responded to in a positive manner.

We live in a world where speed and convenience matters, but the need for real human contact is no less important. If anything, the sound of a real person’s voice is more revitalizing than ever before.

Now is the time to put the Puf Principle into effect. The Puf Principle is easy, painless and powerful. It can turn worry into confidence, it replaces mistrust with trust. The Puf Principle is “pick up the phone!” The acronym doesn’t really fit, but I am sure that you get the picture.

Newsletters, emails and letter campaigns don’t take the edge off worry. Despite the fact that most of your clients have endured market volatility in the recent past, it doesn’t mean that they remember your soothing words.

I was reminded of the importance of the Puf Principle while on vacation last week. I went golfing with a close friend. We seldom talk about investing. When we do he often praises his advisor for being responsive and astute. However, on this day my friend was troubled. It seems that the great confidence he recently had in his advisor had been replaced with a deep sense of doubt and concern.

He said, “I have all of our money invested with him. He is a good guy, but I have not heard from him in over a month. Every night I check my phone messages. He doesn’t call. Maybe I am too far down his list to be of concern.”

His comment reminded me of a personal experience. Many years ago I frequented a chiropractor for a nagging back problem. I had an experience I will never forget. The evening after my first treatment I received a call at home. When I answered the phone it was the doctor, who simply asked “how are you feeling?” The conversation lasted 30 seconds but 15 years later I can still recall the experience. The trust I had for this doctor was implicit, because he demonstrated genuine care for me.

There is an old Chinese proverb that says “whenever there is crisis there is opportunity.” Do you believe this to be true? As an industry we are programmed to say yes. But we all know that when there is crisis, many of us hide beneath the covers.

More Shawn O’Brien columns:

• Walk in the shoes of your best clients • Do you have a brand? • The Puf Principle • How do you earn trust?

I have been there. As an advisor I have experienced many difficult phases of the market. I remember how heavy the phone became after a major downdraft in the markets. I also recall that my inactivity caused the phone to get heavier and heavier.

As financial advisors our role is to provide objective leadership to the marketplace of products and services. What we must remind ourselves is that we will not be judged for the successes. We will be judged by how we behave in difficult times.

If we all use the Puf Principle now when our clients need our understanding and knowledge more than ever, we will soon see concern and doubt replaced by appreciation and understanding.

Shawn O’Brien is the vice-president of national sales at Investment Planning Counsel. For more information, contact Shawn at shawn.obrien@ipcc.ca or (877) 212-9799.

(09/06/07)