Financial expertise can open the door, but persuasion can determine whether prospects take the next step. Advisors can communicate ideas clearly to overcome skepticism and drive action. In today’s FA Alpha Daily, we explore practical strategies for becoming a more persuasive financial advisor.
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One of the most challenging aspects of being a financial advisor is turning leads into clients and convincing the latter to take a particular course of action.
More often than not, prospects aren’t inclined to buy into what you’re offering to them from the get go. And in some cases, there are times where clients are hesitant to pursue a course of action you recommended.
That’s not because they are narrow-minded or dislike your ideas; it’s just that they have a different perception of the world and cling to their own beliefs.
So, as a financial advisor, how can you overcome objections?
The answer is simple: You must learn how to persuade prospects!
Give Your Prospects An Argument They Can’t Refute
Chris Anderson, the chairman of popular nonprofit organization TED, defines persuasion as “convincing an audience that the way they currently see the world isn’t quite right. And that means taking down the parts that aren’t working, as well as rebuilding something better.”
Simply said, persuasion is about convincing others to alter their thoughts, judgment, and opinion on a particular subject or issue.
Being persuasive is an important quality you need to possess because your prospects (and sometimes, clients) are armed with defense mechanisms like mistrust or skepticism.
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So, how exactly can you persuade your prospects or clients to see the world the way you do and convince them to hire you or heed the course of action you’re recommending?
Prime your listener.
One of the best ways to disarm your listeners’ skepticism and mistrust is to use what’s called “intuition pumps.”
According to Anderson, an “intuition pump” refers to “any metaphor or linguistic device that intuitively makes a conclusion seem more possible.”
This concept enables you to make your argument look more acceptable to listeners, especially those who are skeptical of what you’re presenting to them.
Anderson says once an audience has been primed, it is much easier to make a case.
Use the power of reason.
Once the prospect or client is primed, it’s time to use reason to persuade them to see things your way.
Anderson says reasoned arguments are capable of delivering a conclusion at a different level of certainty compared to any other mental tool.
Reason can also be used to counter ideas or concepts you don’t agree with. However, this should be used carefully, as this is best employed on issues and concepts rather than people.
Give your prospects or clients a mystery they want to solve.
Anderson says one of the most attractive ways to build a case is to give your listeners a mystery to solve.
This starts with a big mystery, then traveling the world of ideas in search of possible solutions and ruling out each option one by one until there’s only one viable alternative left.
Creating a mystery is a powerful tool because it allows you to appeal to your listeners’ curiosity, enabling you to hook and persuade them.
Make sure to use the following tips in conjunction with the principles we shared with you above to deliver a truly persuasive case:
- Provide a relevant anecdote as this will humanize you in front of your prospects or clients. If people know why you’re so passionate about what you’re proposing, it’s highly likely they will pay more attention to what you have to say.
- Offer vivid examples to go along with your arguments.
- Whenever relevant, use third-party validation to back up your claims.
Overall, these principles and strategies are meant to help you persuade your prospects and clients.
Sure, these strategies may have come from the realm of public speaking, but they are still relevant to financial advisors.
Successfully converting leads into clients requires that you present a persuasive case for yourself and financial advisory practice.
And even when you’ve successfully turned a prospect into a client, you’ll still need to be persuasive, especially in cases when a client is hesitant to take a particular course of action you’re recommending.
Said simply, persuasion isn’t a one-time skill you use to win business—it’s one you’ll make use throughout every client relationship.
Best regards,
Joel Litman & Rob Spivey
Chief Investment Officer &
Director of Research
at Valens Research
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