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Finding Gold
How to Demonstrate Your Credibility
By Michael Lovas
July 1, 2007
NOTE: This article is an edited excerpt from our upcoming book Capitalizing on Credibility.
| "Clients value trust, integrity and Credibility over product or
service selection, cost, even over knowledge and competence, when it comes to choosing
financial services providers." — Goldman Sachs: The Coming Evolution of the Money Management Industry |
Credibility — it's the holy grail in our industry. It shortens your sales cycle, gives your clients greater peace of mind that you're doing everything possible for them, and then gains you more referrals. Credibility — everyone wants it. However, very few people can even tell you what it is or how to get it, much less how to demonstrate it.
So, ask yourself, "What elements, characteristics or qualities combine to make up Credibility?"
- Do your professional licenses give you Credibility?
- Do your university and post-graduate degrees give you Credibility?
- Is it your years of experience?
- What about client endorsements — do they give you Credibility?
- Previous career?
- Family?
- Church affiliation?
Answer: No. None of those give you an ounce of Credibility.
Exactly what is Credibility?
To get close to the answer, let's look some of the synonyms for Credibility:
- Trustworthiness
- Reliability
- Integrity
- Authority
- Up-standing
- Sincerity
Even if you lump all those words together, the picture is still too vague. So, you still can't determine what it is or how to get it. So, let's look at the American Heritage Dictionary: Credibility is — "The quality, capability, or power to elicit belief."
And, the characteristics of a Credible person?
- Trustworthy
- Competent
- Reliable/Consistent
Those words seem simple enough, but they actually represent a daunting test that may prove to be unobtainable. I say that because the words are absolute. You can't be partly trustworthy. Or kind of competent. Or reliable from time to time.
In real life business, that means you can't represent a firm or product that you don't completely believe in 100%. It is a bar that's set very high. Think of Credibility like this: if it were easy, everyone would have it. And, it's not easy to become Credible, so very few people actually have it.
WHY?
In practical application, Credibility answers the "Why" questions — why would I (the prospect) want to talk with you? Why would I want to do business with you? Why should I trust you? Why should I believe anything you have to say? Why do I need your products or services?
Credibility is something simple and fundamental. It is associated with the person inside you, not the professional outside you. It's not your image or public relations persona; it's a representation of your honesty and integrity inherent in your good intentions. So, how good are your intentions?
Credibility is the degree to which your clients and other people can anticipate your future behavior. They want to know they can trust you to do what you say, and that your actions will be motivated by their best interest, not your own, or your branch manager's or your company's.
Credibility is extended to you by other people; it is their gift to you. The best you can do is make yourself worthy of it.
Let's say you suggest a less-than-perfect product as the solution to someone's problem. What will that person say about you to his neighbors?
- "He did a good job of convincing me that this was the right move, but as it turned out, it's not."
- "He sold me the wrong product for my needs, but hey he needs to make a living too."
- "She offered a one-size-fits-all product for an uncommon problem!"
- "She recognized my dilemma, found a creative solution that solved the problem and even saved me some money."
Credibility is easy to understand and difficult to explain. It is simple to get, but it's not necessarily easy to get. It is not merely a matter of claiming to have it. But, you can get it by simply demonstrating that you actually do have it. This last point is quite a puzzle. On one hand, you need to demonstrate your knowledge and wisdom. On the other hand, you must not pontificate on how much you know.
Credibility is NOT About Showing How Smart You Are
One of the tragic mistakes advisors make when they try to prove Credibility is claiming it rather than demonstrating it. We are eager to show the prospect how smart we are and how much we know about our work. This is not only a sign of insecurity, it's also ineffective for several reasons:
- What you know is of no value to clients unless and until it produces the specific results they are seeking.
- It's not about your knowledge — it's about their problem. Rather than try to impress them with how much you know, why not impress them with how eager you are to learn about them? The more they say, the smarter you look.
- It's not about you — it's about them. Instead of trying to show what you know, show how much you know about their situation. This demands
that you actually listen.
* If you have trouble with listening skills, go to the bottom of this article and send me a note. I'll teach you a simple way to improve your listening, and it's easy to learn.
Why is it that we automatically assume we need to prove ourselves and demonstrate how smart we are and what we know? Besides being highly ineffective, it's also dumb. The truth is, most clients already assume you know what you're talking about and how to handle a situation. They simply want to verify it at a high level of specificity to their situation.
Real Life Example:
One of our clients is a large multi-state regional bank. They asked us to help one of their institutional sales reps (let's call him Rick) make better impressions on the bank's clients. Rick was a CFA, an incredibly intelligent guy who could always see the client's banking problem and the solution within the first couple of minutes. Unfortunately, Rick would get so excited about the solution that he'd interrupt the client, reach across the desk and start writing on the client's note pad! That's called an invasion of personal space. The clients were always offended and refused to appreciate Rick's brilliant solutions.
We taught him that it didn't matter if he could see clearly what the solution was, always ask questions. We taught him that the more meaningful the questions, the greater his Credibility. The more Credibility he had, the more the client would listen to him. In a serious way, the client would be convincing himself, and the best part was Rick didn't have to do any selling!
There is a serious lesson in that story. If you find that you have to rely on closing techniques, it is a sign that you failed to prove your credibility. When you're not seen as Credible, you're seen as a sales person. And, the assumption about sales people is that they are working on their own personal agenda, not the client's problem.
Credibility through Competence. This demands that you understand, empathize and sympathize with your client. Short questions that display your understanding of the client's situation help build your Credibility. You want the client to think, "Gosh, this guy really understands my situation." Unfortunately, most of the time the client thinks, "Gosh, this guy is so amazingly boring and just wants to sell me something."
Credibility and Rookies. A situation we see over and over again is reps in their first few years of business looking to sell a limited product line. For example, you might see everyone as needing an annuity or long term care or even wealth management. If you enter the call as a "salesman," you'll probably see a lot of resistance. That's because your prospects can sense that your agenda is to sell, rather than actually solve their problems. Not much Credibility there. Making a sale is about you. Solving a problem in the most appropriate way is about the client. And that is Credibility.
In Conclusion. We have been helping financial professionals recognize and promote their Credibility since 1991. This is an area of deep understanding and experience for us. It relates to you because if you can't prove your Credibility, you will lose many potential clients. There is a simple two-step process for overcoming this. First, become Credible. Second, let the world know it. This second step is called, "Credibility Marketing." You can't do Credibility Marketing without first becoming Credible. But, when you meet the criteria, and begin to promote it with Credibility Marketing, you will find your business becoming a veritable magnet to new clients. That is what true Credibility Marketing can do for you.
Your Reward. If you will look at the bottom of this article, you will find a way to send me a personal note. If you want to see how you can promote your Credibility, just go down there and use that little form. Be sure to include your contact information and I will personally help you save more than $10,000 in the process!
MICHAEL LOVAS is the author of ten books, three columns, and a thousand articles on Professional Credibility and the Psychology of Communication in the financial industry. He's the co-founder of AboutPeople and the founder of Credibility Marketing.
Michael speaks at conferences and seminars in Canada and the US. He is an inspiring trainer and coach who helps advisors improve their businesses. He holds three prestigious certifications: Licensed Master Practitioner of Neuro-linguistic Programming (NLP), Licensed Trainer of NLP; and Clinical Hypnotherapist. They make Michael an expert at helping financial professionals succeed at a higher level by building more meaningful business relationships.
AboutPeople Books:
- (NEW) Questions Are the Answer! - A guide for using questions effectively in sales conversations
- (NEW) Axis of Influence! - How credibility & likeability intersect to drive success!
- (NEW) Words that Sell - The language of psychological marketing & selling
- Face Values - How to read people and connect with them in less than 3 minutes!
- The Boomer Report - The financial advisor's guide to understanding the boomer mind
- Presentation Magic - How to gain a psychological advantage in your seminars and sales presentations
- The 5 Levels of Rapport - How to create a meaningful connection with people who are important to you
- Magnetic Connections - Consultative selling for financial professionals
- IDENTITY - How to create and deliver the most important statement of your business life
- Inside the Mind of the Senior Market
- Beyond Wave Marketing - How to add credibility to your relationship marketing
Find AboutPeople books at: www.aboutpeople.com
Michael Lovas, C.Ht.
AboutPeople
(509) 465-5599
1503 E. Riverview Dr.
Colbert, WA 99005
www.aboutpeople.com
