The role of a financial adviser is to provide clients with advice on financial matters, making recommendations on ways to best utilize their money, ensuring they are aware of and understand the direction to be taken that best meets their clients needs. The next part of this statement might be to sell product and close the deal.
Being productive also means being creative, helpful, valuable, and practical and so much more. If the measure of being a successful adviser is to be productive how important is it to really understand all aspects of your prospective client’s life?
Stacey Haefele makes an interesting observation in her article in the Financial Planning Newsletter about getting to know your clients,? titled Targeting Wealthy Clients and Understanding the Source of their Wealth.
Are the people before you hardworking, average-earning lifelong savers? High-flying corporate executives saddled with a vested interest (and stock position) in a single company that may never love them back? Or are they small business owners or entrepreneurs whose personal finances and business finances can be hard to distinguish? Did they inherit all their wealth -- or, perhaps, just enough that they can't quite quit altogether? A client's source of wealth is an incredibly informative data point. It is key to understanding a client's values, work ethic, attitudes toward risk and investment personality. It may even give you a clue as to how clients might work with you as an advisor: Will they need an asset manager or a shrink?
Clearly the starting point in order to become a successful and productive adviser is to know and engage with your client right from the start. Charm, inspirational presence and great communication skills together with a high level of competencies do not make a productive adviser. Understanding and learning to navigate the different behavioural styles and emotions of your clients is the key starting point? Independent research shows that 93.6% of your role in becoming a productive adviser is through managing client behaviors.
Through understanding client behaviors:
- Successful and productive advisors will be able to choose what’s right for their clients rather than what’s most profitable.
- Successful and productive advisers will consider the big picture of their clients life, dreams, plans, family and financial situation before advising on products or recommending specific actions
- Successful and productive advisers follow a process for discerning their clients needs and offering recommendations.
Successful and productive advisors make a difference in clients lives.
Carol Pocklington is a Human Behavior Solutions Analyst at DNA Behavior, assisting with the research and development of behavioral products. DNA Behavior helps grow behaviorally smart businesses and financial advisors worldwide to increase competitive advantage using the most reliable behavioral discovery and performance development systems on cutting-edge technology platforms. Solutions are delivered in the areas of client experience management, financial personality management and human capital management.