The 3-Step Process for Closing New Prospects

Chicago: “I just ran into a great opportunity”, Tom told us on a recent conference call. “I’ve been getting up early and going to the gym every morning. I usually get there by 5am, before I get started with my workout I end up chatting with an older guy who works there. The other day he asked me what I do for a living and I gave him my value proposition. This started a conversation where I found out this guy is a retired OB-GYN, who said he really needs a new advisor (lack of service), and has $1.6 million investable. I couldn’t believe it”.

You might call it luck, but getting up early, being at a high-end fitness center, and being prepared with a strong value proposition, landed an initial meeting with an excellent prospect. A testament to our mantra; advisors always be “in traffic.” This quick discussion prompted us to ask Tom a basic question, “What’s next? What steps will you take him through into becoming a client?”

We find that many advisors put a great deal of thought into how they’ll find affluent prospects, but less on how they’ll convert these prospects in to clients. Tom’s team was no exception. The more we talked, the more we uncovered a critical sales issue. Prospects were agreeing to an initial meeting, some wouldn’t show, and of those that did, few were coming back for a 2^nd or 3^rd meeting, and even fewer became clients.

Elite advisors have a clearly defined process for taking a prospect through their pipeline and becoming clients. This is important, as without a clear process it’s hard to explain with conviction the purpose of your initial meeting, why they meet with you a 2^nd or 3^rd time, and why they should sign the paperwork to move their accounts.

These processes vary – some advisors have two meetings and expect prospects to sign paperwork; others plan for 5-6 meetings. We shared with Tom a 3-step approach that many elite advisors use. The objective is to “mini-close” the prospect each step of the way. First, you must sell your prospect on the first meeting, during which you gather information and sell, the second meeting, during which you’re either selling the final appointment or, if the opportunity presents itself, moving right into the third step and getting the paperwork signed. The following is a brief outline of this 3-Step process:

First Meeting – Fact Finding and Rapport Building

Objectives:

· Build Rapport and Learn about Them.
The 80/20 rule holds true in this situation. They should be doing most of the talking. Your objective is to get to know their family situation, retirement horizon, what they do for fun, and so on.

Briefly Explain Your Financial Advisory Process.
This meeting should be focused on them, not on you, your firm, or your investment acumen. At this stage you should take a few minutes to explain how you work with your clients. Share examples of the type of service and services you provide. Hint – focus on the high-level personal service you provide your clients, most affluent investors leave their advisor because of poor service.

Sell Them on a Second Meeting
“Mr./Mrs. Prospect – I have really enjoyed talking with you today and learning more about your family. I’d like to take some time to review your situation in more detail and to compile some recommendations. I think we can really help with your XYZ situation. If it works for you, let’s set some time for meeting again next week. No obligation at that point, I’ll just offer my thoughts and we’ll see if there’s any way I can help. Would XYZ date and time work for you?”

Request Necessary Statements
Encourage the prospective client to send you (or you go pick them up) any remaining account statements, tax returns, etc. that you may need to create their plan/proposal.

Second Meeting – Deeper Dive and Recommendations

Objectives:

Build Rapport
Revisit topics you discussed in your first meeting regarding family, hobbies and other things important to them. Continue with the 80/20 plan of letting them do most of the talking. Come prepared with a few other areas to inquire about – summer vacation plans, grandkids and so on.

Present your Recommendations
Re-state the financial priorities you uncovered in your first meeting.

Ask Questions
Do you have any initial questions based on what we’ve covered here? Are there any other financial concerns you might have that we haven’t discussed? And so on…

Read Them and Sell Them
On a Third Meeting – “Mr./Mrs. Prospect – I know we’ve covered a lot of ground today. You probably need a little time to digest all of this. Could we plan on getting back together so that I can answer any questions you might have in a week or so? Would XYZ date and time work for you?”
-or-
On Signing Account Paperwork – “Mr./Mrs. Prospect – I am confident that we would work well together and that we’d be able to help you with X, Y and Z. All we’ll need to do is sign a bit of paperwork and the rest of the process is in our hands. Does that work for you?”

Third Meeting – Final Q&A and Paperwork

Objectives:

Rapport Building
Re-visit topics discussed in meetings one and two. Remembering their hobbies and family situation will show that you’re a good listener, and that they’re important to you.

Final Questions
Ask your prospective client a couple of clarifying questions if needed. For example, “You mentioned helping pay for your grandchildren’s college. Is this something you’d want to start immediately or is that a longer term objective?” Also ask if the prospect has any final questions for you. Hopefully they’ve had a chance to review your proposal/plan and will give you an opportunity to address any questions or concerns they may have.

Clinching the Relationship
Using the language mentioned above in meeting two, suggest they sign paperwork and move forward with you.

Great salespeople read their prospects and adapt their process to the individual. They might plan for three meetings, but discover their prospect is an engineer who’s engrossed in the details, so they add a fourth meeting. Conversely, if they found their prospect to be a busy business owner, they might have the introductory meeting at their office with the second and final meeting at this person’s place of business.

Selling to today’s affluent is much like being a great chef, you might be working from a recipe, but you can customize your dish based on available ingredients, the preferences of your guests and so on. As of this writing, Tom’s initial meeting went well and his OB-GYN prospect agreed to come back for round 2. For Tom’s team, this simple adjustment of having a plan for transitioning a prospect into a client should be the difference between frustration and results.

5 ‘New Advisor’ Networking Tips for Tough Times

Detroit: “I’ve never been a natural networker” started Lisa as we wrapped up our webinar. “I read the Oechsli Institute’s 2011 FA Report which stated that ‘strategic networking’ is one of the five high-impact marketing activities – so I guess I should learn how to network. Do you have any tips when the markets are this volatile? What about networking for new advisors?”

If you aren’t heavily networking as a new advisor, especially in today’s environment, you may be left behind. We hear stories nearly every day from new (and veteran) advisors who bring in business because they put themselves in affluent traffic and are prepared. In a recent study, 46% of new advisors brought in at least one new $1MM+ client through strategic networking last year, and we know that number would be much higher if new advisors went in with a game plan and executed the right way.

When the markets are volatile, the networking soil is even more fertile with opportunities. Why? Because everyone talking about the markets and the economy. So how do we capitalize? Whether you’re involved in a civic organization (Rotary, Chamber of Commerce, etc.), philanthropic group, or a smaller niche group, the following are 5 tips for new advisors to improve their networking skills in a tough market environment.

 

1. Be More Assertive

At one point when referring to marketvolatility, Lisa threw out to the group, “I feel like most people just want to weather the storm.” Lisa feels like she is being too pushy when she attempts to bring up business and the markets are down, however, this mindset is entirely wrong. The truth is, businesses and investors need you more than ever before. If there were a major medical pandemic sweeping the nation would doctors be in more or less demand? Talk about a rhetorical question. People need your services now more than ever before; but understand that not everyone is going to be banging down your door, you need to let them know it’s open. The first step is to ratchet up your assertiveness by at least fifty percent (for Lisa, maybe 75%).

2. Turn Defensive Questions into Offensive Responses

As you are out networking, and people know what you do professionally, they are going to ask about your thoughts o the markets or ask you “how’s business” – it’s inevitable. Your response during those moments can make all the difference. Your objective is to redirect that conversation into an opportunity and not show any hint of defensiveness or nervousness. If someone asks “What do you think about the markets?” You might respond with ““This has been a crazy environment, but we’ve working extremely hard, meeting with clients and making certain they’re protected on all fronts. We’re in the process of updating financial plans and re-evaluating risk. Has anyone done that for you in today’s environment? It’s extremely important…” These typical conversations are business opportunities when you’re prepared.

3. Follow Up Magic

You’ve taken the time to meet a lot of new people; you’ve invested the time and resources to be involved…now what? Your follow-up to the people you meet in networking events can make or break you. The first step to effective follow-up is thinking on your feet. When you are at the actual networking function, come out of each new conversation with a follow-up already lined up. This requires some creativity and a search for passion points. For example, if you are meeting a potential prospect and know of an article that may be of interest to them, mention it then! You might say, “You know, I read this great article on cycling the other day in the NY Times. Since you are an avid cyclist, I should send it to you – can I get your card?” If you discover another person works close to your office you might say, “I didn’t realize you were right down the street. Where do you typically grab lunch? We should meet-up next week. How about Friday?” The trick is not waiting until after the fact to come up with your follow up – do it live! After the event, you can send them a nice handwritten note reinforcing the already planned follow-up tactic.

4. Have a Power Lunch

One way to follow up is through power lunches. What is a power lunch? It’s simply a lunch at a place to be seen where people conduct business. Strategically select at least one person from your networking group a week and ask them to lunch. During that lunch make an effort to learn more about them personally, their family, their business, and resist any temptation to pitch. After all, affluent investors are not receptive to the ‘hard-sell’. They want to do business with people they like, trust and respect – so make a friend first. You might ask…

• What do you enjoy most about your work?
• How did you initially build your business?
• How did you get started with your work?
• What types of clients do you serve best?
• What are your plans for your business?

5. Get LinkedIn

We would be remiss if we didn’t mention the importance of networking online. LinkedIn is the world’s largest professional network with over 120MM users. As you meet new people at live events and look for new opportunities, LinkedIn can play a major role. Lisa had a LinkedIn account but wasn’t building connections on it from people she met at networking functions. Make a habit of always adding new contacts online after every new encounter. Run a search on LinkedIn and personalize the request message to them. Then review their profile and look for areas of commonality. …Did you go to the same college? Do you have any mutual connections? Are you involved in similar online groups?

Networking in today’s environment is more important than ever before. People are searching for answers, and your objective is to be front and center. Lisa just needed a game plan, a new way of thinking, and a willingness to up her assertiveness. New Advisors must stay visible, uncover networking opportunities, and be prepared.

7 New Advisor “Musts” for Thriving in Crisis

Atlanta: “I wasn’t in the business during the last downturn, but I get your point about this being a big opportunity for me. What should I focus my efforts on right now?” Tony asked us at a recent workshop.

Crisis breeds opportunity in the financial services industry, especially for new advisors. Many veterans have been hunkered down in their offices, taking incoming calls from clients, not being proactive in their client contact. Their clients are now becoming prospects for advisors who are dialed-in.

Our research has shown that 85% of the affluent would consider changing advisors, but they’re not going to make a lateral move; replace one ‘so-so’ advisor with another. This would be like trading a 2001 car with 100,000 miles for another with similar age and mileage. As a society, if we’re going to suffer the process of change, the end result must be worth the effort.

Hence, to take away clients from other advisors, you’ve got to be a clearly superior alternative. Remember, whether you’ve been in the business 25 weeks or 25 years, you are the product. How you carry yourself, how you communicate – your positioning is critical. The following are 7 New Advisor “Musts” for Thriving in Crisis. These are great for deepening relationships, initiating new relationships, and finding new business in a time when many of your competitors are missing the mark.

1) Get Face-to-Face
The affluent prefer face to face contact over every other communication medium (phone, email…text isn’t even in the running). Not to mention, getting face-to-face creates sales opportunities. With existing clients you can find up-sell opportunities and uncover the family members and friends that might want a 2^nd opinion. With referral alliance partners and affluent COIs you’ll …

2) Place Yourself in the Right Situations
Rarely do you bump into prospects in your office. (If this happens, let us know. We know plenty of advisors that would pay you good rent.) But when you’re out in public, you’re seeing people, having conversations, and in this environment, you’re likely to be having some “how’s business?” and “what do you think about the markets?” types of conversations. In today’s environment, almost every conversation can serve as a segue into offering a 2^nd opinion.

3) Craft Your Message
Too many advisors reflect back on situations and think about what they “should have said.” Elite advisors carefully craft their message in advance. Whether it’s the recovery strategy you’re discussing with clients, or grabbing control of a social conversation that started with a remark about the markets and ends with you mentioning the importance of having a risk-audit. The secret is to anticipate the conversations, craft your game plan and execute ‘in the moment’ with a calm confidence.

4) Be more Assertive than Usual
In times of crisis, people need and want guidance. For that reason, many advisors have benefited from adding 10% more assertiveness when talking to prospects. Instead of saying “it might be a good idea for us to meet”, they might say, “this is no time for hesitation, we need to get together for coffee this week and talk about your recovery strategy.”

5) Get Face-to-Face with COIs
You might be doing a great job guiding your clients, but many of your competitors are not. All the more reason to get in front of CPAs and attorneys in your area. Explain to them some of the “red flags” they can be looking for when meeting with clients. (overly concerned, poorly suited investments, etc.) You’re more than willing to a “risk-audit” (2^nd opinion) on their portfolios.

6) Challenge Yourself but Remain Balanced
One hour spent prospecting in this environment is the equivalent of three hours of prospecting when things were calm. This makes it very tempting to over-do-it; obsessing over work to the detriment of your family, social and personal health. It’s not worth it in the long run. You’re not doing clients or family any favors if you’re “burning the candle at both ends”. We’d recommend planning your week in advance and including time for family, friends and exercise.

7) Get Social with Clients and Referral Partners
The Oechsli Institute’s research shows that clients who report having a social/business relationship with their advisor provide three times the number of referrals of those who have a business-only relationship. The same hold true for CPAs, JDs, and other referral partners. The idea is to get personal. This can come in the form of a ballgame, backyard cookout, dinner as couples, and so on. You’re not looking for new best friends, just the opportunity to get to know them on a personal level.

The game plan, as with most of our recommendations, is simple and activity driven, but not easy. There is no better time than now to be in front of clients, prospects, COIs and wealthy social contacts. As Matt Oechsli has said many times, the next 12-24 months will define the next ten years of your career. Let’s make the most of it!

Shaky Markets, Substantial Opportunities

Seattle: “The market is taking a major tumble and the few clients I have are calling the office frantically,” moaned Ethan as we began our coaching session. “I know you’re going to tell me this is a great time for prospecting, but I can’t keep my head straight. It’s hard enough for me to bring in new clients because I’m a rookie, add the shaky market on top of that and I’m not even sure where to start.”

With memories of 2008 looming in the background, the dow plunging in response to a AAA downgrade and media pundits fueling fear and uncertainty everywhere you turn, it’s natural for investors and advisors to become a bit nervy.  Ethan in particular, is feeling the pressure from his existing clients who need consoling and his manager who needs production.  He’s not sure how he should approach his marketing strategy going forward.  Right now he’s thrown in the marketing towel and is focused on keeping his book intact.  But what would an elite advisor do in these circumstances?   Definitely not sit on the sidelines and let this prospecting opportunity disappear.

Market chaos – which is what we have — increases affluent investor’s recognition of the importance of working with a real financial advisor – an advisor who is proactive.  Amidst crisis there is always opportunity.  The following are three tactical ways new (and even veteran) advisors can capitalize on the financial crisis.  All of which requires working overtime!

Contact Existing Clients
Bad news always travels fast.  Your first step in navigating this volatility is reaching out to current clients and letting them know you are monitoring their situation.   This can be done through calls, personal meetings, lunch and learns, social interaction, webinars, teleconference calls, etc.  Your actual method for contacting clients is not as important as the contact itself.   You might say…
“Mr. Client, I’m calling just to touch base because of the volatility in the markets.  We’ve reviewed your portfolio (over the weekend, this morning, last night etc.)  and are comfortable with where we are right now.  We will continue to monitor your portfolio and can update you as often as you like.  How frequent would you like for me to reach out to you?”

You might continue with a reference to a prospect you have identified in the past.  “And Mr. Client, I know you mention your colleague Larry often, is that someone I should be talking to?  Does he have an advisor guiding him through this market turmoil?”

The more frequently you repeat those lines, the more you increase the probability of getting in front of a prospect who easily become a client in this environment.

Re-engage Old Prospects
Remember that old list of stale prospects?  The ones who stopped returning your calls?   Our current market conditions create a perfect opportunity to reengage.   Create a list of prospects from the past two years you would like to approach and set up face-to-face interactions to position a “risk-audit.”   You might say…

“Hello (name of prospect), this is (your name), we met at (insert place).  I’m sure you have spoken to your current advisors, but I just wanted to call and see if everything is alright in the midst of this recent market volatility.  It’s probably a good time for us to get together and look at your portfolio.  This is no time for hesitation.   Do you have any free time later this afternoon or over the weekend?”
Once again, the more of these conversations you have, the more clients you will acquire.

Be Prepared for New Prospects
When the markets continue the volatility, advisors need to be ready capitalize on the inevitable market conversations.  Each of these conversations is a perfect opportunity to segue into a “second opinion.” Next time you are in a social setting (Rotary, Son’s soccer league, neighbor’s BBQ, etc.) and someone opens up the dialog about the markets – your job is to grab control through misdirection and to offer a 2nd opinion, not get pulled into a lengthy discussion.

“This has been a crazy environment, but we’ve working extremely hard, meeting with clients and making certain they’re protected on all fronts.  It’s gotten so serious that my clients are now asking me to provide 2nd opinions for close family members.”  Read the body language – if you have their attention, go for a 2nd opinion mini-close.  “Has anyone done this for you?  I’ll be glad to take a look.”

In 2008 some advisors crumbled while others prospered.  How you approach the next few weeks could have a dramatic impact on your career.  As new advisors, it’s easy to feel like Ethan.  However, resist any urge to deflect attention and instead welcome it. Elite advisors see this correction as a great time to communicate with existing clients and find new prospects. The glass is half for advisors who are staying extremely active and very visible.

Social Prospecting for New Advisors

Austin: “I’m a natural in social circles.  My family has excellent contacts and I can get face-to-face with all of them socially” began Jim.  He continued, “But now what?  I always have this issue of bridging the gap between social relationships and business prospects.  Plus, I’m new to the business.  Why would they need me?”

Jim is skimming the surface of a major issue that we hear nearly every day during our coaching and workshops – turning social relationships into legitimate business prospects.  The concept of approaching people you know regarding business is often unnerving and downright scary.  This is especially true for new advisors. They psych themselves out – what if I ruin the relationship?  Why would they want to work with me?  Will they ever talk to me again?  Will I look too “salesy”?

From Jim’s perspective, he would much rather hold a seminar where people are there that he doesn’t know, supposedly for the purpose of business.  He feels more comfortable in that context.  However, from a 2011 Oechsli Institute research perspective, the marketing tactics most effective in today’s environment are all relationship based.  Jim needs to roll up his sleeves and get outside of his comfort zone!  The following is a simple process for tackling this difficult new advisor issue that requires courage, finesse, and practice.

Forget That You Are New

New advisors need to forget that they are new advisors.  As contradictory as this might seem, it’s extremely important for your mindset and for your confidence.   The truth is, you know more about your craft than 99% of the population.  However, we often get caught up in the mind games associated with feeling we are too new, too young, or too inexperienced to work with larger prospects.  You assume “Uncle Bob” won’t want to do business with you.  After all, he could work with someone who has been an advisor for thirty years.  This type of mindset is destined to serve as a self-fulfilling prophecy.

For example, last week we were on a call with an advisor who had only been in the business for two years and had a round of golf set up with a large prospect who happened to be a family friend.  At the end of the round, the prospect asked him, “So why would I do business with you?  You’ve only been an advisor for a couple years.”  The advisor smiled and replied with self-confidence, “You work with me because you can trust me, I’ll communicate with you, and this will be a collaboration between us.”   He maintained his composure and confidence.  He got the business.

Like, Trust, Respect (Warning: Don’t Skip this Step!)

This should go without saying, but I can’t tell you how many advisors ask us questions like, “Okay, I just met this new prospect, when do I go for the business?”  This is the equivalent of asking, “I just had a great first date, when do I ask for their hand in marriage?”  The answer to both is a deafening– it depends!  Building rapport and getting to know your prospect is fundamental to your relationship marketing strategy.  Take the time to get to know your prospect on a personal level.  You should know their hobbies, interests, organizational involvement, children’s names, children’s interests, pet’s names, philanthropic passions, vacation hotspots, etc.  (Obviously, all of this is not required, but you get the idea).

Timing and Execution

With a solid rapport established it’s time to take action. When you pull the trigger depends upon your unique situation. However, the following are three basic situations in which it can make sense to approach your social relationships.

1.  They Complain About their Personal Situation/They Ask For Your Advice.

The prospect in this situation is cracking the window – your objective is to jump through it in the form of a “second opinion.”   This might be something along the lines of, “This has been the most volatile period we’ve seen in the markets in a long time.  We’ve just been working feverishly with our clients to make certain they’re protected.  We should probably sit down with you as well – just to make sure you’re headed in the right direction.”

2.  They Mention a Life Changing Financial Transition

If your prospect is buying/selling a house, recently retired, widowed, divorced, or experiencing any other financial transition, this is your moment to step in and demonstrate your expertise.  Once you discover the financial impact point, you might say, “You know, we do a lot of work with people who are going through a divorce, and we’ve seen people make a lot of mistakes.  It would probably make sense for us to get together and make sure you have all your financial ducks in a row.”

3.  You’ve Known Them For a Long Time (It’s Now or Never)

Sometimes, you just ask.  When asking directly, be sure to focus on your inflection and position your offer as a supportive gesture.   Be confident in your execution and limit your verbiage.

The Offer Stands

Not everyone is going to take you up on your offer to talk business.  Therefore, in any of these situations, you have to be ready to walk away or drop the subject.   After all, these are friends and family and whether they do business with you or not, they can be great centers-of-influence.  If your prospect isn’t biting, let them know that the second opinion offer stands whenever they are ready and then continue on with your conversation.

Being able to bridge this gap takes a lot of practice and courage. Create a targeted list of social relationships that you would like to have as clients and take them through this process.   As you master the skills component and just start doing, your confidence will grow and you’ll be well on your way to Rainmaker status.