Wholesalers face aggressive activity objectives. Today’s standard is 25 in-person contacts per week. When covering larger geographies this proves challenging. As a result of insufficient scheduling, some wholesalers stop at an advisor’s office after calling to say, “Hey, I’m just down the street…” or – even worse – totally unannounced. “Do you have a few minutes?” turns into 30- 60 minutes. The wholesaler attempts to tell his or her story with little regard for the schedule of the advisor.

Recently a coaching client called me about a wholesaler dropping in unannounced and sucking up an hour of his Associate Advisor’s time. This wholesaler has a quality product, but my client called the wholesaler and advised him not to call or come back. You might ask if this is a little drastic; maybe so.  However, my client was waiting on a report that was to be prepared by the associate – and the report was late. Not only did my client fire the wholesaler, but he had to deal with a delayed meeting because the associate tried to be courteous to the wholesaler.

Are Drive-By’s ever appropriate? Possibly when dropping off a promotional item ONLY or to introduce oneself and schedule a future appointment. However, if a wholesaler expects the advisor to have empty time in his or her calendar because the wholesaler has empty time, the situation is totally unprofessional.

FOR ADVISORS: Be jealous with your time. Give wholesalers your “ground rules” for meeting. And be on time when you have a meeting scheduled with the wholesalers. Their time is as valuable as yours.

FOR WHOLESALERS: Schedule in advance. Use a scheduler. Set your next meeting at the conclusion of this meeting. And always be a pro.

Good Selling!

This is the second post in a series of ten discussing major faux pas’ made by wholesalers, ideas on how to correct them, and suggestions for advisors on how to deal with wholesalers who make these mistakes.

Mistake #2: Telling, Not Selling

Presenting is an essential skill for wholesalers. You demonstrate your product in such a way so the advisor knows what it does, how it works, where it fits, and how to sell it. And to say nothing about group presentations! Master wholesalers dominate when it comes to individual and group presentations.

However, hear the words of Jaime Calva, a selling sage with 60 years under his still productive belt:

“Telling is not selling.”

Dialogue happens when two or more people converse. Like the Tango, it takes two to dialogue, and in order for a sale to be made, both parties must communicate. While this involves feedback, it means more than the typical sales feedback loops. Selling involves interviewing your prospect. Selling means knowing your prospect, and in order to know someone you must ask questions. Asking questions does NOT mean interrogation with “Fact-Finding” questions, but professional rapport building with “Foundation Building” Questions, such as:

• “Tell me about your family.”
• “How did you get into the business?”
• “If you were to bring me on as new vendor relationship, what has to happen in the next twelve months in order for you to consider your decision a success?”“
• In looking at your practice / business today, what do you consider your biggest challenges?”
• “What is the biggest factor in your success?

SOLUTIONS: Develop a standard interview structure, and be flexible. Build a list of 20 Foundational Questions as a goal for each advisor relationship. Ask these questions over a couple of meetings to find the advisors passions, drivers, and motivations. Don’t forget to build effective feedback loops into your presentations, as well.

FOR ADVISORS: You should do the same with your clients. Ask better questions. And, beware the wholesaler who leads with, “What part of your sales is made up of [PRODUCT]?” Chances are he/she is looking out for himself/herself alone. For your part, get to know your wholesalers better with every meeting. Learn about their internal drivers, and what they need and want in a professional relationship. Expect wholesalers to truly be your partners, and be a partner with them as well.

Good selling!

Today’s kids just aren’t motivated. We have spoiled and coddled them. They don’t have drive, and can’t deal with competition.

Yeah, right.

Yesterday Missy Franklin put an exclamation point on her first world swimming championships in Shanghai.  She won five medals in all — two golds and a silver in relays as well as a gold medal in the 200 back, and a bronze in the 50-meter backstroke. Her performance put Michael Phelps meet – which was outstanding – into the second paragraph of news articles. Phelps was quoted as saying, “She does it all… she’ll remember this for a long time.”

Did I mention Missy Franklin is only 16?

Missy teaches us some wonderful lessons. You are never too young (or too old) to realize big dreams, but those dreams come with a price! During the broadcast, the commentators from NBC mused about the influence of Franklin’s coach, Todd Schmitz. Schmitz taught his young swimmer that when you practice, it is similar to making deposits in the bank. You keep making deposits whenever you practice, and you equate the amount of the deposit to the quality of the practice. When you compete, you get to withdraw everything you have deposited!

Apply this to your business. How can you make “deposits” into your business? What can you “practice” that will result in significant withdrawals in the future? Consider practicing:

• Exceptional Service
• Keeping Promises
• Presentation & Delivery
• Staff Empowerment & Development
• A Never-Ending Commitment to Improvement & Excellence

Congratulations, Missy Franklin. Thank you for your inspiration, and best wishes for continued success, and a long and happy life.

And to you…

Good Selling!

Client reviews are sometimes difficult to schedule. The client says something like, “Well, no need to get together. We are happy where we are.” We assume that means they are “satisfied” – and we are right. However, satisfied clients are not necessarily loyal clients. Maybe we need to examine our review process. Maybe, just maybe, the client does not see the value of sitting down for a review. Maybe the problem is us; we don’t really provide a quality review! Many advisors consider a review to be a time to simply go over account statements, increase positions, and sell additional services.

One of the biggest constraints you face when making any presentation is a limited amount of time to get your point across. You have to deliver your information as efficiently as possible, and address everything you can in the time you have. Your goal isn’t to make listeners instant experts on the subject but to include as much information as they can effectively process. Keep the following pointers in mind, both during your preparation phase and while you’re conduction the review.

1.    Know Your Client. Knowing your clients well helps you determine how best to help them quickly, based on what they want and need to learn. Ask yourself: Who is this person, and do I not know about them?  What’s most important to them? How does your information help them? Don’t worry about your needs; focus on the review from their perspective.
2.    Prepare Carefully. A quality client review begins with a tight, succinct agenda; utilizing an organized, logical process which is goal-attainment. Use a standard meeting agenda. Keep everything as simple and straightforward as possible, supporting your message with facts, without being overly technical.
3.    Broaden Your Appeal. To maximize information transfer, you have to appeal to the basic types of learners. Build your review around their preferred method of gathering, sharing, and organizing information. Some people want the bottom line. Others want detail. Some like visual communication tools, while others are verbal. Know your clients’ communication styles.
4.    Use Effective Visuals. Speaking of visuals, the old saying that a picture is worth a thousand words may be a cliché, but that doesn’t mean it’s untrue. Charts, graphs, and props can add immeasurably to your ability to get your message across, but only if they’re easy to read and easily grasped. Graphics are especially useful for quickly presenting statistical measures and numeric indicators, in order to get your points across. As with your words, though, they need to be concise.

Examine your review process, and consider how you can make it more effective. This pays dividends for the client and for you.

Good selling!

Today I received an email from a financial advisor who is a coaching client. A portion of the email read as follows:

“Mike; I am working on a schedule for my assistant for blocking time and activities.  What are your thoughts on the subject…?  Thanks.”

This was my reply:

For a start, book appointments – as many as possible – on Tuesday through Thursday. Mondays would be for staff review, planning, and case preparation. Fridays would be for finishing the week, planning the coming week, and cleanup of messes.

Does this mean you wouldn’t see a client on Monday or Friday, or for breakfast, lunch, or dinner, or possibly an evening or Saturday appointment? OF COURSE NOT! However, MOST clients can be guided to one of these time slots. Furthermore, I suggest that unless you plan to work Saturday, don’t schedule an appointment after 11:00 AM on Friday. This allows you to finish early – and let your staff catch up – from the busy and productive week.
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Please feel free to send me your thoughts on time blocking and scheduling appointments.

Good selling!

Many firms have a “packaged” proposal system. While proposals are all over the map in terms of structure, most contain huge amounts of information, with numerous charts and graphs, volumes of copy, and endless disclosures. Whether you present financial plans or individual product presentations, proposals generally contain enough information for a doctoral dissertation. It’s all about disclosure and dictated by the compliance department.

Some clients want the bottom line. Other clients look for detail. And after all, isn’t the presentation about the client? How do you build a presentation and presentation strategy that always provides you with the tools you need to deliver whatever information your client needs to make an intelligent buying decision?

Consider making a summary of recommendations for your presentations. Take the detailed analysis and spreadsheets, and put them in an appendix.

If your client channels Jack Webb and wants the facts – just the facts, or if the client is an actuary with graduate degrees in statistical analysis and engineering, you will be prepared to provide the information needed to fulfill your obligations to communicate in a manner best suited to your client and provide appropriate and complete information. Provide the summary, and give the clients as much detail as they need. Your closing ratio will go up because you are adapting your communication techniques to your clients needs.

Good selling!

The last half of 2008 provided the banking industry with a host of unprecedented problems.  Many banks offer investments and financial planning services to their customers through internal broker-dealers or third party providers.  Regardless of you distribution model, your investment department faces challenges as well.  Shrinking account values, inappropriate investments, and delayed or damaged retirement plans damage customer relations.  Emotions run high when customers feel (rightly or wrongly) they have been poorly advised or misled.  Deteriorating client relationships in your investment department carry over to customers’ banking decisions.  Follow these five simple steps to make certain your investment department provides the highest level of professional service to you customers.

Manage your Investment Advisors – Too often banks neglect to provide the same degree of oversight to their investment departments as they do to their banking operations.  Manage your investment department the same as you would any other part of the bank.  This requires a basic understanding of the culture, benchmarks, and processes of the investment industry, as well as management processes designed to grow business and insure exceptional service. If you have a program manager, your increased interest and knowledge will help them in their role.  If you have a third-part program, assign a member of the bank’s management team to provide assistance and oversight of the operation.

Departmental Communication – Include your investment advisors in regular bank meetings and events whenever appropriate.  When your investment advisors understand the bank’s focus, they are better equipped to cross-refer business.  In addition, they experience the bank’s culture and expectations on a first hand basis.  Insist upon a basic level of reporting that allows you to exercise proper due diligence.

Investment and Service Offerings – Know what your investment advisors sell to your customers.  Be cautious about allowing your investment department to position its services as “investment management.”  In most cases, bank advisors sell packaged investment products utilizing portfolio managers, such as mutual funds, variable annuities, and separately managed accounts.  Most bank advisors do not pick stocks, for the most part, or exercise discretionary authority to trade securities for clients.  Product and service offerings should not be so broad as to hinder the advisors’ ability to have a complete understanding of what they offer to clients.

Examine Service Standards – Know exactly what a client can expect from an advisor in the way of service.  Most advisors establish and follow a service schedule that answers questions such as:

• How often will the client’s account be reviewed?
• How does the advisor segment clients for service purposes?
• What additional services are offered, and how does the client qualify for additional services?
• How is the service program administered, and who manages the service program?

Investment Policy Statements – An Investment policy statement (IPS) is a simple document, usually based upon a template, which spells out an investor’s investment goals, risk tolerance, and expected results. It also lays out a plan for how the investor will monitor his or her portfolio, as well as the advisor’s roles and responsibilities. An IPS allows the client to be clear about expectations, as well as providing the advisor with rules of engagement, in addition to acting as a compliance tool.

Consider using these strategies to enhance to value of and quality of service rendered by your investment department.  A minimal amount of oversight provides customers with the best possible level of service and protects the bank’s valuable customer relationships.  An investment department provides addition fee income and a more complete financial product offering, which improves bank customer retention.  Make certain this star pupil continues to make its bank parent shine.