Discovery meetings are essential for building relationships with prospective clients, and there are key strategies that can turn these meetings into fruitful beginnings. To optimize these interactions, financial advisors can focus on five core practices, each designed to foster trust, uncover client needs, and differentiate themselves from competitors.
These practices are not only about gathering information but also about creating a foundation for lasting relationships.
Following are five simple steps to improve your discovery meetings.
1. Use small talk to build trust
Small talk is often underestimated in business settings, but in discovery meetings, it is a powerful tool for building rapport and trust. Research shows that effective small talk helps break the ice and opens the door to deeper, more meaningful conversations. Starting with questions such as “How did the two of you meet?” or “Do you have any children?” allows the advisor to connect on a personal level.
The goal is to create a warm, friendly atmosphere where prospects feel comfortable. By spending a few minutes on casual conversation, advisors signal that they are genuinely interested in the individual, not just their financial situation. This kind of personal connection fosters trust, which is critical before diving into more serious financial discussions. Small talk can make the difference between a prospect opening up or holding back, and it sets the tone for the entire meeting.
2. Listen more than you talk
One of the most common mistakes advisors make is dominating the conversation. Data from the Horsesmouth Discovery Lab shows that in many meetings, advisors speak for up to 70% of the time, leaving prospects with only 30% to share their concerns. When advisors talk too much, they miss the opportunity to understand what truly matters to the prospect.
The focus should be on asking open-ended questions and actively listening to the responses. Instead of delivering long monologues, advisors should practice asking follow-up questions that delve deeper into the prospect’s answers. For example, after a client shares a concern, an advisor might ask, “Can you tell me more about that?” This shows that the advisor is engaged and interested in the prospect’s unique situation, which builds both trust and likeability.
3. Ask open-ended, sensitive questions
Closed-ended questions can limit the conversation and make it feel like an interrogation. On the other hand, open-ended questions encourage prospects to share their thoughts, feelings, and concerns in a more comprehensive way. These types of questions provide insights into a prospect’s values and motivations, which are crucial for tailoring financial advice.
Advisors often hesitate to ask sensitive questions, fearing they might alienate the prospect. However, sensitive questions, such as “What is your biggest financial regret?” or “What financial achievement would give you the greatest satisfaction?” can create a deeper connection and reveal important emotional drivers. Asking these questions also demonstrates the advisor’s ability to handle complex, personal issues with care and professionalism.
In fact, most prospects appreciate when an advisor shows a willingness to tackle tough topics, as it differentiates them from competitors who might avoid such conversations.
4. Transition smoothly from small talk to serious discussion
While small talk is essential for building rapport, it’s equally important to know when to pivot to more substantive topics. Some clients may enjoy a lengthy casual conversation, while others prefer to get straight to the point. Advisors need to be attuned to the prospect’s cues and adjust accordingly.
A good way to transition is by using questions that acknowledge the small talk and then shift the focus. For instance, after some casual conversation, an advisor might ask, “When you were driving here today, what were the top financial concerns on your mind?” or “What would you like to gain from our conversation today?”
These questions gently steer the discussion toward the purpose of the meeting, without making the prospect feel rushed or uncomfortable.
5. Differentiate yourself by demonstrating competence and care
Prospects are often evaluating three things during a discovery meeting: whether they like the advisor, whether they trust the advisor, and whether they believe the advisor has the competence to help them solve their financial problems. Advisors who can address all three concerns are more likely to turn prospects into clients.
To demonstrate competence, advisors should clearly explain how their skills and experience can directly benefit the prospect. This could involve sharing success stories of similar clients or explaining how their professional certifications, such as CFP® or AIF®, ensure ethical and competent service. Advisors should not assume that prospects understand these credentials. Instead, they should take the time to explain their relevance.
At the same time, advisors must show that they care about the prospect’s well-being. This is where emotional intelligence plays a critical role. Advisors who ask thoughtful questions and listen carefully demonstrate that they are invested in their clients’ success beyond just the financial outcomes.
This balance of competence and care is what truly differentiates an advisor in the eyes of the client.
Conclusion
Discovery meetings are more than just fact-finding sessions. They are the foundation for lasting relationships.
By focusing on small talk, listening more than talking, asking open-ended and sensitive questions, transitioning smoothly to serious discussions, and demonstrating both competence and care, advisors can create a strong connection with prospects. These five strategies not only help advisors gather the information they need but also establish the trust and rapport necessary to win new clients.
In an industry where trust is paramount, these discovery meeting practices can make all the difference.
Editor’s Note: Would you like to incorporate these steps into your practice? Join Horsesmouth’s newest workshop:
ClientQuest Social Security: Capture Peak 65 Boomer and Gen X Assets in 2025!
You will learn to master ClientQuest’s integrated approach combining Social Security expertise, proven financial education marketing strategies, and effective discovery meeting techniques to dramatically boost your advisory practice.
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Sean M. Bailey, Horsesmouth Editor in Chief;
and Chris Holman, PCC, Executive Coach
Virtual Workshop: October 30–December 18, 2024. Sign up here.