Journal of Financial Planning: June 2012
Vern C. Hayden, CFP®, is president of Hayden Financial Group LLC in Westport, Connecticut, author of Getting an Investing Game Plan, and contributing editor to TheStreet.com.
Before I had a total hip replacement I interviewed three orthopedic surgeons. They all went through a discovery process with me and then explained what was wrong, what was needed, and how they would go about it. They were giving me a sales pitch on why they were the professional of choice.
I would be in great hands with any of the three. The three hospitals involved were all good: the famous Hospital for Special Surgery in Manhattan, the Greenwich Hospital in Connecticut, and the White Plains Hospital in New York. The Greenwich Hospital won. Why did it win? When Dr. Kavanaugh interviewed me he asked all the same questions the other ones did, but added a very important one to me—“Do you play any sports?” I said, “I’ve played some kind of sport most of my life, but for the last 40 years I’ve played handball, and I play about three times a week.” He then asked, “Do you plan on continuing to play? A lot of people your age (then age 65) stop playing such a rigorous sport, but what are your plans?” I said, “I plan on playing until I’m either disabled or dead.” I told him it was very important to me. He then explained what kind of artificial hip he would use and that he would not use cement because that tended to be less flexible. He also suggested an aggressive rehabilitation program at the well-known Burke Rehabilitation Center in White Plains, New York.
Fast forward: I spent three days in the hospital and seven days at the rehabilitation center. It was there I learned the true meaning of “no pain, no gain.” Within three months I was on the handball court. That was 10 years ago, and I am happy to report I played in a tournament just two weeks ago—at the age of 75 on that good ol’ titanium hip. The point of the story is that in “selling” me on his services he asked the right questions and learned some very critical information. He gave me the feeling he actually was concerned about how the results would affect my life.
Selling Is a Skill
One void in many financial planners’ skill sets is the ability to convince someone they should use you instead of the planner across town. Being a great planner is not enough. Many years ago, I had a financial adviser in my business who was a superb planner. He decided to start his own business. Because I was relatively good at marketing it looked easy. He ended up being a great planner but had virtually no clients. When he asked for his job back I told him I had hired someone and suggested he look for a job at one of the banks.
If your job involves getting new clients or making a sale of any kind you may want to consider a course I recently attended in Atlanta, Georgia. The Bunnell Idea Group (BIG) was founded in 2005 by Mo Bunnell. As the chief visionary for his group, he is changing the way people position themselves with respect to sales. He is an authority on sales strategy, sales effectiveness, training, and coaching. He honed his expertise over 13 years as a licensed actuary with Hewett Associates. He focused on building relationships and solving client problems. Eventually, he was named the global account executive for two of their four largest clients. As the recognized specialist in sales strategy and tactics for the company, he and his team generated millions in contracts relating to highly customized consulting arrangements. He has trained thousands of people, including financial planners, on how to sell their services and create relationships.
So, what did I learn in two days with Bunnell? My flip answer is, “Plenty.” (Please keep in mind that in my 43 years in the business I have taken at least three sales courses. One of them I repeated three times.) Before arriving in Atlanta, the approximately 25 students were required to complete a questionnaire, the answers to which would help create an understanding of something called the Herrmann Whole Brain Model as it applies to each individual. In this model, there are four quadrants with the letters A through D. “A” is the rational quadrant, “B” is the practical, “C” is the experimental, and “D” is the relational. Each of these represents a thinking style. In other words, if you can understand how people think, you will know more about their behavior patterns, and the chances to create “instant” chemistry with a person goes off the charts.
The results of the questionnaire gave me and the other students a visual plot of our thinking style preferences. A small sampling of the report for me said the following:
The thinking style quadrant you most prefer … is the “D” quadrant with a value of 123. Descriptors in this thinking style … are imaginative, synthesizers, artistic, and intuitive, with holistic representing your “key description”.… Work elements you strongly relate to in this quadrant include creative and innovating.
The rest of the analysis expands on those themes and also explains to what degree the other quadrants influence my thinking. A good understanding of these thinking styles provides a meaningful backdrop to the rest of the course (which builds on 12 modules that include being a rainmaker, a closer, and putting your process on a business basis) and how to apply it to prospects and clients.
Understanding Client Dynamics
In addition to the specifics of the BIG process, over the years I have learned some concepts that compliment any process in working with clients. One of the first things I discovered was two very practical observations about the nature of information. First of all, information from a client needs to encompass both the subjective and objective. Objective information such as a client having a million dollars in four CDs should mean very little to us until we ask them what they think about it and what purpose it is serving for them. When they tell you something like, “I know I’m losing money after taxes and inflation, but I like the safety of them and didn’t know what else to do,” now you have something meaningful to work with. You must know how a client feels (subjective) about their facts (objective).
The second part of the nature of information is that most information about people is dynamic and not static. If you are doing written financial plans, the tendency is to treat information as though it might not change (static). Clients often change their minds about things and your planning process needs to adapt to those dynamics. In fact, your planning process needs to encourage refinement of decisions. A planning process that encompasses the real nature of information will tremendously enhance your relationships.
Expanding Comfort Zones
Another reality about clients relates to their comfort zones. When you first start to work with them they are most likely “sitting” right in the middle of their comfort zones. That presents a problem to you, the planner, because clients will likely have to expand their comfort zones to reach their goals.
One of the most critical tasks we have is to expand a client’s comfort zone to include what is needed to realize his or her goals. So the question is, how do we expand clients’ comfort zones to enable them to more effectively meet their objectives?
At least four actions will accomplish this (the time it takes depends on the client): (1) education, (2) participation, (3) visioning, (4) building trust.
Education. By this I mean a simple explanation of issues being addressed. The danger here is getting into too much detail. Also try to avoid the jargon of our business. Educate to the point of simple understanding.
Participation. Finding ways for a client to participate in the process is important. I always stamp “draft” on planning issues being presented. Having clients express their understanding of things and doing “what if” exercises facilitates this.
Visioning. Do visioning exercises with clients. If they expand their comfort zones and can envision something meaningful in doing it, chances are they will do what is necessary.
Building Trust. An extended positive relationship can build trust. One of the most important issues is delivering on your promises. Continually give service consistent with what you promised.
Combining proven sales processes with these proven client concepts will help you obtain and keep clients. Our business is all about people and understanding them. When we understand them and their comfort zones we can more effectively help them achieve their goals. There are times we all have to “sell”—even good ideas.