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How Behavioral is Your Big Data?

What if you could empower your sales and service people with bigger behavioral data that could generate 23% more revenue?

Many of my financial advisor coaching clients look at their CRM as a necessary evil. At times they can be frustrated with all the data input done for each client.

But like most things in life, when we run into frustration, we may need to change the lens to get a different view.

The key question to shift our view: What do you do with this data?

The standard response:? Marketing activities.Behavioral Data, CRM Behavior, CRM Personality, Behavioral Marketing

We email our newsletter to all the $250,000+ accounts, invite our $5 million clients to our annual summer wine tasting event and send out invitations to our clients who are 55+ to attend our pre-retiree lunch and learn programs.

Now, change the lens.

What if you could add a little personality to your CRM and take your marketing efforts one step further?? Imagine segmenting your 55+ pre-retirees by whether they are more goal or people oriented and then tailoring the presentation to engage each of those groups in a unique way.

As suggested in Using Big Data: Act Like You Know Your Customer, financial institutions have barely scratched the surface in creating unique client experiences.

The new behavioral business model requires your firm to go beyond the traditional demographic data and get beneath the surface of actions(one type of behavior) to the real core of personality (why you behave as you do).

Engage a client on their terms and you will have less effort, more referrals, and more compliant product recommendations.

Isnt it time to get bigger behavioral data at the point of sale to create a unique experience thats centered completely on the customer?

To learn more about client engagement, please visit the Financial DNA Website.


Try Financial DNA free for 30 days!

3 Keys to Get You Ahead of Your Competitors

Do you feel as though you are always running to catch up?? Here are 3 Keys to get you ahead of your competitors.

financial advisor tools, financial advisor solutions, client engagement tips, financial behavior, behavioral finance, financial personality, client behaviorAdvisors want to deliver excellent advice, they want to see satisfied clients, and they work hard to inform themselves to be able to give this level of service.

Often they are running to catch up with the latest social media, latest gizmo, the latest must read book that remains sitting on the night stand unopened for months, the latest financial industry guru declaring how best advise clients? All very frustrating and unfulfilling but more importantly, unproductive.

So what is the answer to becoming a behaviorally smart advisor?

  • It is all about navigating human differences to match the advisor to the client and provide appropriate solutions for them.
  • It is all about uncovering all of who a person is
  • It is about knowing who your competitors are AND what they have to offer

Some simple thought provokers:

  • Have a conversation with your clients, forget about advising or selling for a short while – just converse
  • Share something of your story, it will be relaxing and itll encourage them to talk. As the advisor, you are the leader: leaders go first
  • Many people often won’t initiate sharing something personal, but are far more likely to do so in response to someone sharing some of their story first
  • Listen for clues, watch for reaction, understanding their needs and values
  • You are now building trust – you are now laying foundations upon which to match a product /advice

3 Keys:

  1. Uncover. Use conversation to build trust by identifying the human behaviors which lead to the differences in your style with the client and within family groups. This will remove the hidden obstacles, and build more confidence in the advice you give.
  2. Navigate. Understand the power of the written, spoken, visual word and make sure the client hears/understands the message.? If you understand your clients communication keys, thats brilliant, but if not focus on the cues provided to you, then you can navigate them through your message/s.
  3. Match. If you are part of a larger group, use this information to match advisor to clients to more easily gain? deeper levels of engagement. If you are in a small practice look for ways you can adapt your approach to match the clients needs.? Add an additional ingredient by ensuring you as the advisor and your client have shared values.? Non-aligned values produce poor results.

For more information on how you can Uncover, Navigate and Match to build sustainable business performance, visit the Financial DNA website.


Try Financial DNA free for 30 days!

The Reserved Reflector Client

This post is part of our series on Financial Behavioral Insights from our Financial Performance in the New Behavioral Economy White Paper. The financial behavior insights will help you gain greater self-awareness for recognizing some of your own behavioral tendencies and also those of investors.

The Reserved Reflector

Patricia is a project manager who works on local government system projects around Atlanta, Georgia.? She is married and has two children.? Due to the nature of her occupation she has relocated several times and she and her family have just moved into Atlanta within the past three months.? They have purchased a new home and are still getting settled.? Patricia prefers to work with a financial advisor with whom she can email and only have face-to-face meetings when necessary. Patricia is 44 years old and she spends large periods of time traveling and tied up in projects. However, she wants an advisor she can stay in touch with by sending a regular email with the key information and structure conference calls when a key issue comes up for discussion.Reserved Reflector Client

Patricia is clearly a Facilitator with the dominant trait of being a Reserved Reflector. This means she tends to keep in her own world and interact with people only when needed. The Reserved Reflector will prefer to withdraw and research information. Although, when needed they can be very effective at interacting with other people.

When these reserved and reflective talents are used well the Facilitator will be good at digesting information and focusing on the matters at hand. They will be able to put the portfolio into compartments in their mind allocating money to investments with different levels of risk. Although, the downside of this is they can make it too structured not buying and selling investments in the special purpose accounts when needed.

Behavioral Insight
Naturally focused and withdrawn people will be Facilitators who are Reserved Reflectors. They are able to think through issues well but will mentally account for their investments taking a calculated risk with that component they are prepared to lose and act with a fear of not having enough money.

Communication key: Allow them to retreat and think and do not overwhelm them with emotion around new ideas.

Further, a struggle for these Facilitators who are Reserved Reflectors is that they naturally have a fear of not having enough money for their retirement no matter how financially secure they are. This causes them to hoard their money with the result of not spending, giving or taking an investment risk when they need to. The good point is that they are unlikely to make a rash financial decision.

Learning Point:
The advisor needs to be aware that the Facilitator who is a Reserved Reflector will not always give you a lot of feedback because they are processing information. Therefore, keep clam and do not push them too hard for quick response. Further, keep their confidence up that they will have enough money in the worst case situation. Ask the client: How do you gather new information? Tell me about how comfortable you are with spending money?

To read about additional client behavioral styles, download the full Financial Performance in the New Behavioral Economy White Paper.

What are your thoughts?