Yesterday millions of American investors panicked.  Unfortunately, so did many of their advisors.

Whenever the financial markets become volatile, investors have mood swings that exceed the magnitude of the movement in the market. (This goes for upward as well downward volatility.) Most of our clients grew up with depression-era parents.  These people grew up hearing things like “turn out the lights; don’t waste electricity,” and “money doesn’t grow on trees.”  They heard stories about people who “lost everything” although those people really didn’t have much to lose and what they lost was not lost in the market.

In addition, our clients watch the evening news and read the morning paper, and bad news sells.  Headlines included “Depressionary Tales”, “A Year of Losses” and “Stock Market Plunges.”  While it would be ostrich-like to ignore the current market environment, getting caught up in the hysteria of traders is never the right perspective for the astute financial advisor. The question becomes “Where should we direct our focus?”

When advisors conduct client reviews the vast majority of the time spent in the interview is focused on the investments and other financial products. Unfortunately, advisors dedicate very little time to review and adjustment of the client’s goals.  If the strategies utilized fit the client’s goals in the recent past, then what has really changed?  Instead of maintaining focus on the client’s goals, we allow the conversation to focus on prices that are set by traders!  If the client’s goals haven’t changed, then the strategies should not change either.  For example, if a client’s goal is income at a certain point in the future, and you have a solid asset allocation with good money managers, and you employ risk reduction strategies, the short term gyrations in financial markets exacerbated by junior reporters generating unrealistic scare headlines have no bearing on long term outcomes.

I recommend that the first third of a formal client review be dedicated to review of the client’s goals.  Don’t just talk about the numbers; paint the mental picture of what the long term outcome will look like to your client.  Keep them focused on what is really important to them about money, and then discuss the strategies you feel will get them there and why.  Be passionate, and do everything in your power to keep the client from buying high and selling low.  And ask for referrals, even in the face of a bull market.  Your clients know a lot of people just like themselves that want a financial advisor just like you who stays focused on client goals.

Good selling!

Technorati Tags: investors panicked

Yesterday I was in New York at the National Speakers Association Convention.  While I was in town, I called the office of a sales coaching client who is a retail financial advisor for a large bank.  This bank has about fifty offices spread over seven states from coast to coast.  I provide sales coaching for their advisors, and thought I would stop by and say hello to this particular person.  I called the advisor’s office and asked “Do you know which branch [advisor] is covering today?”  The answer was short and to the point.

“No,” was the reply, followed by silence.  No offer to find out the answer or find someone who could assist me; just a simple no.

First impressions make or break sales.  If I had wanted to discuss opening a new account, I would have chosen not to dig any deeper.  Were I an existing client, I may have considered moving my account.  Shep Hyken, CSP, CPAE is one of America’s top customer service experts.  In an article titled “First Impressions”, Shep states that “Most of the statistics range between eight to twelve good things to make up for a Moment of Misery.” 

Solution: Make certain your staff and colleagues are trained on proper telephone technique.  Script them, and leave nothing to chance.  In today’s world, tolerance is preached on every corner, but never be tolerant of poor or rude telephone technique.  Believe this; your clients won’t be tolerant if they are treated poorly.  Conversely, if people are trained and expected to deliver exceptional client service in every way, people will want to do business with you, and refer you to others.

Good selling!

Technorati Tags: sales coaching, financial advisor, refer

Last week I went to one of my favorite places in the world – a fishing camp in Canada with my boys. While I love my role as a professional speaker and business strategist, it is good to have seven straight free days with no calls and no email. It was bliss.

This camp provides customer service beyond the exceptional. Every detail is focused on the guest. But no business is perfect – mine included. One morning I noticed my boat battery charger was unplugged, so I assumed the on-duty dock attendant (average age for this role is about 19) had forgotten to plug it in the night before. A different attendant was on duty than the night before, so I commented that there might have been an oversight. His comment was, “I wasn’t working last night. My co-worker was on the dock. ” The implication was clear – he was suggesting it wasn’t his fault.

The proper response would have been something like “I’m sorry if your boat wasn’t charged. I’ll ask my coworker about it. Would you have a few minutes for me to charge it now?

I can easily forgive a teenager for this response, but this incident reminded me that too often we don’t take responsibility in our business. If a colleague or the service department fails to deliver, you are the company to the customer – it is your responsibility to see that the problem is fixed. So when a customer encounters a problem, step up, say you are sorry, and do your best to fix it or accommodate the customer – even if it isn’t your fault. Even if the customer isn’t appreciative, you will know you did the right thing, and that always pays off in the long run.

Good selling!

Technorati Tags: professional speaker, business strategist, customer service