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Your prospect has an agenda. She needs help managing her money. She also requires comprehensive financial planning. You know nothing else about her, except she fits the profile of a perfect client for your advisory firm. She has agreed to have an initial meeting with you.
You want her as a client. You are prepared to present all the reasons why she should retain your services. Of course, you will engage in the usual chitchat about the weather and her family.
But you are impatient. You are waiting for the opportunity to pounce, gauge her reaction and (hopefully) add her assets to those you already manage.
There’s a better way. To become great at converting prospects into clients, remember these words: Ask questions.
Taking consultative selling to another level
An entire consulting industry has been built around a concept called “consultative selling.” This approach, which became prominent in the early 1970s, consists of eliciting information from prospective clients to determine their needs and then recommending a product or service that meets those needs. When you engage in consultative selling, you shift your focus away from “making the sale” and toward meeting the needs of the customer.
By asking questions and listening carefully to the responses, you get a complete understanding of the needs of your prospect. In many cases, understanding those needs will result in a new client. When it doesn’t, you can still provide value by directing your prospect elsewhere or giving advice.
My research takes “asking questions” to another level.
Your goal is not to craft a presentation responsive to the prospect’s needs. In fact, in most instances, you should never make a presentation at all. Instead, ask questions and listen intently to the responses.
Here are some ways to frame those critical questions.
Tips for asking questions
Asking the right questions, at the right time, requires study, skill and experience. It is surprisingly difficult because it is so counterintuitive. Our brains are programmed to take center stage. We believe that what we are saying is more important than what we are hearing.
But this is a fundamental misunderstanding.
Here are some tips to overcome this misunderstanding:
Plan your questions. Some questions flow naturally from the conversation. For example, if your prospect told you she was a victim of a Ponzi scheme, you would want to know how that affected her and whether placing her assets with an independent custodian would give her sufficient security.
You should always spend some time preparing key questions you believe will help you understand your prospect. When I get an inquiry about a speaking engagement, I ask the person to tell me something about the group. I also ask about positive and negative experiences the group has had with other speakers. The responses help me connect with my audience and craft a better presentation.
Don’t read questions from a script. I am amazed by how many people feel the need to rely on something written for even the simplest interaction. I have seen lawyers give opening statements to juries by reading from a large yellow pad: “My name is John Smith, and it is my privilege to represent the plaintiff in this action, Bill Jones.” Surely they can remember your own name and who you represent!
Nothing impedes effective communication more than not making eye contact and appearing rehearsed. Take time to memorize the two or three main areas of inquiry you need to explore at the meeting. Ask your questions in a conversational tone.
Don’t ask loaded questions. Never underestimate the intelligence of prospects. They know when they are being manipulated. Never ask questions like, “Why do you believe we might be the right fit for your needs?” Your goal is to genuinely determine their requirements. Don’t assume their needs and your firm’s offerings are a good fit.
Don’t cross-examine. Effective questioning should not feel like an invasion of privacy or an inquisition. Ask only questions that are necessary to fully understand the needs of the client. If you really need personal information, ask for permission first. To avoid inundating the prospect with too many questions, you may want to schedule a series of meetings. You don’t have to learn everything in the first meeting.
Ask open-ended questions. Questions that start with “what,” “why” or “how” encourage longer, more discursive answers. Encourage your prospective customer to open up and convey as much information as possible.
Cede control. The right question can transfer control from you to the prospect – where it belongs. Here’s an example: “What would you like me to do as the next step?” This is far better than saying, “I will follow up with you next week to see where you are with the decision-making process.”
Ditch the pitch. Hard pitches may work well in baseball, but not in sales. They cause people to recoil, act defensively and become suspicious and resistant. You can’t ask questions when you are lecturing.
When I give these recommendations to advisory firms, I invariably get resistance. They are eager to demonstrate why their firms should be retained. The question I get asked most frequently is: "When will we have an opportunity to tell the prospect how we invest and what our historical performance has been?" I answer: “When the prospect asks for it.”
I have had personal experiences in which all I did was ask questions. I never discussed anything about our firm or how we invest before the client agreed to retain our services. Prospects are not shy. If they have a question, they will ask. That’s the time for you to respond and ask another question.
Here’s an example:
Q: “Can you tell me when to get in and out of the market?”
A: “No. We don’t have the ability to predict the direction of the market. We think there is a better way to make investing decisions. Would you be interested in hearing about it?”
My advice is based on hundreds of peer-reviewed studies referenced in The Smartest Sales Book You'll Ever Read. Other methods of communicating with prospects will not necessarily be unsuccessful. However, I believe that if you want to skew the odds in your favor, you should try this approach.
I look forward to receiving your feedback.
Dan Solin is the director of investor advocacy for the BAM Alliance and a wealth advisor with Buckingham Asset Management. He is a New York Times best-selling author of the Smartest series of books. His latest book, The Smartest Sales Book You'll Ever Read, has just been published. He consults with corporations and advisory firms on ways to improve their sales.
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