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Finding Gold
What Advisors Want, Or, Shooting at the Wrong Target
By Michael Lovas
May 1, 2008
In March of this year, I conducted a research project. It was a survey of the financial professionals in my personal database. I asked them to send me their top three concerns. This article is based on the responses received.
Based on the responses, I developed two conclusions:
- The responses showed me that many advisors do not understand what is wrong with their business machinery. If it were a horse with a broken leg, they'd be trimming hooves. And, if it were a rifle range, they'd be shooting on the wrong target.
- Since they don't know the real problem, they are helpless to solve it by themselves.
Quick Look: In response to the question: "What are your 3 biggest concerns," there were two answers that stood out most significantly. Today, we're going to look quickly at the most important one. Then, we'll go into greater depth:
This answer was voiced by fifty percent of the people responding — and the respondents came from all across the financial industry, in the US and Canada. Prospects. I had actually anticipated that this answer would come up, but I didn't expect it to come up quite so often. Advisors seem not to know how to be more effective at bringing in either new prospects or more highly qualified prospects. Our investigations show that this is a serious concern for people operating transactional businesses, as well as fee-based planners.
If you're a savvy and discerning advisor, you can already see that if you need more prospects, it's not just a prospecting problem. It's actually much more serious than that.
In-Depth Look: Prospecting has changed drastically over the years. It used to be, you could buy some leads and build a business. And, for many years, the biggest concerns were what wording you should use on the lead card and telemarketing script. More than once someone has asked me to create a compelling message — but limit it to 34 characters. That numbers-based prospecting model no longer works nearly as well. Many of our own clients cry that it no longer works at all.
Is this you? Are you aiming at a higher quality target market? If yes, you're actually seeking to change the fundamental nature of your business, especially if you ever wanted to sell your business. You can't really expect to apply the same message or logic to a totally different target market. Moving up requires you to get better.
You can no longer be merely a product provider or even a planner. To move up from where you are, you have to become more of a relationship manager. Why? Because of where your next prospects will come from. The research is conclusive — higher quality clients do not respond to cold calls or lead cards. They don't even respond well to seminars. They respond to referrals from people they trust. And, the hard fact is this — you don't get referrals from people you have not built a trusting relationship with.
The bottom line is, if you think you need more prospects, zoom out and see a larger picture. Prospecting is the wrong target. It's not a prospecting problem, it is a credibility problem. Here's a quick analogy. Let's say you tell me that you have a weight problem. "Mike, I'm twenty-five pounds over." If I ask a few simple questions, we'll probably find out that you don't have a weight problem — you have an eating problem. The added weight is a result of the eating problem. So, chances are, you don't have a prospecting problem — you have a credibility problem. Your lack of prospects is a result of your not knowing how to prove your credibility to your target market.
Here's the catch. You've already heard that you can't get referrals unless you are referable. But what the heck does it mean? It means that you need to improve the perception of your credibility. We tell our clients, "You should already be credible That's a prerequisite of doing business in this industry. But, assuming your credibility, chances are, your target market doesn't know about it." We don't question your actual credibility. We question your ability to communicate it, prove it, demonstrate it to your target market.
Perception
Prospects and clients do not understand your actual credibility. All they know is how they perceive your credibility. But the thing is, you are in control of that! So, if you're not getting enough referrals, that means your clients are questioning your credibility. Again, you don't have a prospecting problem; you have a credibility problem. (Pam and I discussed this exact point during our teleseminar: Credibility & Likeability.)
Perception is what your entire world is based on. It's simply how you experience things. Here's how it works. Let's say you and I are having a conversation and a total stranger joins in on the conversation. We have the same experience but we both have very different perceptions of the experience. You might think he's outgoing and interesting, while I think he's arrogant and invasive.
See, everything you experience is filtered through the things you've already experienced. And, since your life's experiences are completely different from mine, we cannot perceive anything in the same way. Ever wonder why some of your closest friends have political views that are polar opposite of yours? Ever wonder how come every family in town doesn't believe that your kids are the best and most beautiful? Perception. And if you never learn anything else about perception, take this one fact — no one else shares your perceptions. So, how you see yourself — it's completely different from the way anyone else sees you. The way you see your credibility — only you see it that way.
So, the big question is this: how do your prospects and clients perceive your credibility? It depends, largely, on what you show them. So:
- What are you showing them? Most advisors use a tri-fold brochure and business card. If that's all you have, you're shooting yourself in the foot. Look around for what no one else is giving or showing. Billboard, skywriting, big balloons, puzzles. Think outside the brochure without getting silly or gimmicky. A relevant book is always better than the best whoopee cushion.
- What messages are you sending, and are they conflicting or confusing? Having analyzed marketing messages (from a psychological perspective) for about thirty years, I can tell you that nearly every message in the financial industry is psychologically incongruent, and confusing to prospects.
Answer those questions for yourself and you will have taken your first baby step toward solving your credibility problem. The next step, then, is to create a Credibility Strategy. This is how you organize and improve your messages to manage how they are perceived by your target market.
Get personal. In terms of marketing and selling, your objective is to demonstrate or prove your personal credibility in such a way that the prospect sees it (you) as irrefutable and significant. And you need to do that because this is how you begin to satisfy a prospect's "convincer strategy." That's his personal requirements for making a decision.
What might you hand him: Whoopee cushion? Refrigerator magnet? Ball cap? I hope not. How about handing him a copy of a book you wrote? Or a DVD of your being interviewed on CNBC? Those would be pretty powerful, but they are harder to accomplish than simply getting introduced by someone that prospect already trusts. And, that person of course, is already your client — IF you've made the effort to be of value in your service and relationship.
Credibility Introductions
Because the early sales training in this industry relied on numbers, a great many advisors still approach their marketing and selling that way. "Mike, it's a numbers game." Actually, it's not. It once was, but those days are over. They went out when the senior market began going into assisted living communities.
Look at this another way. Most likely, your problem is not that you need more prospects. It is that you're currently not getting your prospects in the right way. That your clients are not giving you "credibility introductions."
Let me give you an example of what a credibility introduction is NOT: "Michael, I have a friend named Carolyn, and she sure does need your help. Here's her phone number." How well do you think that call is going to go?
Instead, help your client introduce you. Teach him what to do and how to do it. A real credibility introduction is a conference call with the three of you. The client takes the lead, and it might sound like this: "Carolyn, I want to introduce you to someone I care about. His name is Michael. This is someone I've grown to admire and trust as he has helped me solve some pretty important problems. He is like family, and I'm asking you to treat him like family. Whatever your dealings together in the future, he is someone you should get to know today."
I know that introduction by heart because that is exactly how Pam and I were introduced to a big New York publisher just a few weeks ago. And, as it was taking place, I thought, "This is perfect! I have to remember it."
In Conclusion. This lesson is vital to you if you want to move up the food chain. And, it's very simple — improve how people see you (your credibility) and you will get more referrals. Get more referrals and you will not need to chase more prospects. It takes your commitment to building the perception of your credibility. Do that and Voila! No more prospecting problem.
Your Reward. Pam and I have been working with the psychology of credibility since 1991. We have developed many incredibly effective tools and skills to help financial professionals build their credibility. We will teach you how to use them at our Credibility Intensive in Charlotte, NC (May 22/23). And, that's where your reward comes from. Send me an email with your top 3 concerns and I'll give you a $50 discount to the full Credibility Intensive. And, get the details about the Intensive, go to: www.aboutpeople.com/credibility/
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
