One advisor shares a valuable lesson from a prospective client who walked away
To convert prospective clients, a financial advisor should be able to convince them of his or her expertise. Many prospects may be impressed by one’s ability to explain different financial plans — but for others, this strategy can backfire.
“I must admit that when I began my career my retention numbers were not that strong,” said Michael Chadwick, president and CEO of US-based Chadwick Financial Advisors, in a piece he wrote for Financial Advisor IQ. “This was particularly mysterious to me because the clients that I did have were very happy.”
The clients Chadwick had early success with were engineers, lawyers, and other highly competent people. They were all impressed by his knowledge, so he knew his expertise was not an issue. “I had plans and proposals for every situation and was eager to lay them out for prospective clients,” Chadwick said. “But even so, my retention rates kept lagging.”
He eventually decided to directly ask people why they decided to not work with him. Among the different people he approached, one person gave him the direct feedback he needed: “’You share too much information, you move too fast and I can’t keep up,’ he told me.”
The man told Chadwick that he felt overwhelmed and intimidated by all the material presented. Once he fell behind, he could not catch up; he became hesitant to ask questions or let Chadwick know he needed to slow down.
“I realized what was obvious or even easy for me was not necessarily that way for everyone else,” Chadwick said. The man further pointed out that Chadwick was a fast talker, which added to the intimidation others felt.
After that revelation, Chadwick began to consciously change his communication style. He stopped himself during conversations with clients, asking them if they had questions. He would also reiterate important points in a different way, even though clients said they understood, just to reinforce them. “I have never had anyone complain that I take too much time to make sure that they understood everything that we were discussing,” he said.
After around a year of actively slowing himself down, Chadwick’s retention numbers started to pick up, and he said they’ve stayed strong.
“I’m still a fast talker — there is only so much you can change about yourself,” he said. “But just because you talk fast doesn’t mean you have to keep talking and talking, and it doesn’t mean you can’t make conscious stops along the way to let people catch up.”
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“I must admit that when I began my career my retention numbers were not that strong,” said Michael Chadwick, president and CEO of US-based Chadwick Financial Advisors, in a piece he wrote for Financial Advisor IQ. “This was particularly mysterious to me because the clients that I did have were very happy.”
The clients Chadwick had early success with were engineers, lawyers, and other highly competent people. They were all impressed by his knowledge, so he knew his expertise was not an issue. “I had plans and proposals for every situation and was eager to lay them out for prospective clients,” Chadwick said. “But even so, my retention rates kept lagging.”
He eventually decided to directly ask people why they decided to not work with him. Among the different people he approached, one person gave him the direct feedback he needed: “’You share too much information, you move too fast and I can’t keep up,’ he told me.”
The man told Chadwick that he felt overwhelmed and intimidated by all the material presented. Once he fell behind, he could not catch up; he became hesitant to ask questions or let Chadwick know he needed to slow down.
“I realized what was obvious or even easy for me was not necessarily that way for everyone else,” Chadwick said. The man further pointed out that Chadwick was a fast talker, which added to the intimidation others felt.
After that revelation, Chadwick began to consciously change his communication style. He stopped himself during conversations with clients, asking them if they had questions. He would also reiterate important points in a different way, even though clients said they understood, just to reinforce them. “I have never had anyone complain that I take too much time to make sure that they understood everything that we were discussing,” he said.
After around a year of actively slowing himself down, Chadwick’s retention numbers started to pick up, and he said they’ve stayed strong.
“I’m still a fast talker — there is only so much you can change about yourself,” he said. “But just because you talk fast doesn’t mean you have to keep talking and talking, and it doesn’t mean you can’t make conscious stops along the way to let people catch up.”
For more of Wealth Professional's latest industry news, click here.
