Notes from Joe's session:
Coach Joe Lukacs, founder of International Performance Group
The rules of our business have changed. A shift in how you need to approach from a client standpoint.
2 issues going on. Our marketplace, clients, prospects. Humans are paralyzed by fear. High uncertainty. It shuts human beings down in terms of decision making. They feel as though they’ve been let down.
Making decisions emotionally requires logic to counteract. But now you need that emotional connection. If you’re emotionally bankrupt, it no longer resonates.
We need to know how they make decisions.
What are their values and the rules associated with them, in terms of advisor relationships, and investments. They may have changed this past year.
Re-benchmark client’s financial goals. Pre October financial goals are no longer useful.
Clarity on their needs, wants and wounds.
You are in the people business, not the investment business!
The skill sets we need, and are lacking, are people skills. Advisors who understand human beings are the ones who will be successful.
In a good economy, a typical client is already “emotionally ready to take action.” They want to keep up with “the Joneses”, meet goals, don’t want to be left behind. All advisor needs to do is put a plan together.
In today’s market, it cannot be solved with logic. Advisors need to help clients overcome their fears and move towards action.
You cannot overcome fear with logic!
Clients aren’t clear on emotional benefits.
Fear of change (Clients unhappy with current advisors but hesitant to leave.)
Advisors need to clarify their mission:
You help people enhance their lives!
Make changes to better finances, economics and investments
Every person has a unique decision making process.
Most advisors apply their decision making process to other situations.
Syntax is a program or pattern that people use to make decisions
People are habitual creatures.
Ask unhappy clients how they chose to work with that particular advisor. Analyze their past decision making process. Changes are it would be the same relating with you.
How values affect decisions:
Ask clients “Tell me what is most important to you in your advisor/client relationship?”
That will give me what’s important to them. Will the decision you are asking them to make get them what they want?
Advisors must understand their moving toward and moving away values system. Then I can find the ways to motivate my clients to change.
A person’s values and rules can be changed by their experiences and environment. The more intense the experience, the more likely the shift.
Clients may change from “An advisor who makes me money” to “An advisor who offers me security.”
People are motivated by their needs, wants and wounds! Wants tend to be much bigger. Most advisors focus on needs. You need to cover their wants more to understand motivations.
“I need to retire by 65.”
“OK, but what do you want to do when you retire?”
It’s not about the money, but the lifestyle they want to have.
“What are some of the things you just can’t have happen when you retire?”
“I don’t want to run out of my money.”
Understand emotions around wounds. Rearticulate to clients so they know you understand.
Decision Making Syntax:
How this applies to clients and prospects and advisors
#1 Towards vs. Away
Towards: A person who can articulate what they want. Pleasure oriented. Want oriented.
Away: Can articulate what they want to avoid. Communicate more negative. Wounds. What they don’t want.
“What is most important in your advisor/client relationship?”
“Understand my needs, care, someone I can trust.” That is a Towards person!
“I don’t want to be taken advantage of or be abandoned.” That is an Away person!
Change your approach to deal with their individual personalities.
#2 Possibility vs. Necessity
Possibility is all about more options.
Necessity is all about when they need.
#3 Internal vs. External
Internals go inside and use their gut. They are very hard to read. Key is to be patient. Wait until it feels right to them. They want to “sleep on it.” Don’t get frustrated.
Externals look for validation. Easier to read. Ask how long you’ve been in business. Notice your office. Don’t use gut, go by external influences.
These are blends, but there is always a dominant trait.
#4: Completion vs. Process
A completion person wants it done NOW. Don’t have time for a ton of meetings. Time matters to these people. Short decision makers. Don’t like long slow detailed meetings.
A process person take awhile. They love meetings. They need to think about it. If you violate their process or push for an answer, they will not buy from you.
Adapt your style, or walk away from that person.
#5 How Many Times to be Convinced
Automatic Convince Strategy: Once you answer a specific question they are convinced.
Number of Times Strategy: You need to answer their questions a number of times. Until they are 100% convinced.
Continual convincer needs to be resold every single time.
#6 Generality vs. Specificity vs Blends
Generality: Big picture, hate detail, want summaries
Specificity: Want all the information, read the contracts, need everything to make a decision
Blends: Want big picture and need a level of detail.
Most advisors have a standard proposal. But they’re missing too much.
Advisors ask clients to acquiesce too much.
Getting People to Take Action:
Manage your expectations, patience and persistence. Decision making processes are slowing down. Expect more objectives and requests to “sleep on it.”
Take the objection and invert it:
Make a reason to take action
A decision not to act is still a decision!
Link it to why they need to take action
Link to what they want most
Link to what they want to avoid most
Why is in their best interests
Doing it for their reasons not ours
Remember—People are always reevaluating their situation!
If you never call your prospect back again, you’ll never get a new opportunity.
Follow-up!
Drip on them
Reengage them
Bring them back in
Restart the process!
Global Action List
Opportunities
Reevaluate risk tolerances and assert allocations (They have changed!)
Uncover outside assets
Make a concentrated touch base effort
Shake the tree and see what falls out
The only way to really mess up is by doing nothing.
Call prospects, communicate, find out their wants, needs and wounds. Are they ready to make changes? Really communicate and help them.
Our core mission: We enhance people’s lives
Call people on their commitments
Ask why are they afraid to take action
Open a dialogue
How much more pain before threshold?
Don’t be afraid to push people away
It’s the difference between an advisor vs. a salesperson who is always out to please.
Proposal Hanging
Give them a call
Proposal has expired; they need to come back in
Reestablish all elements
Do a take away
Build a deadline
Battle of Congruency
Your conviction
You are the person to get them where they want to be
Recognize the value we bring
As important as spiritual and health advisors
The rules have changed. This is our brave new world.
Get some downtime for yourself, get your mind right.
Understand what you’re bringing to the table. Find out why you’re doing this, or get out.
What we do is so important. We’re their financial advisor.
Remember—You have to hurt them in order to heal them!
When you have market volatility, people’s awareness is raised!