Research by our team of behavioural scientists suggests consumers are just as likely to hire a financial adviser for emotional reasons as financial ones. However, they may not be aware of those emotional reasons or be able or willing to discuss them at the outset of the relationship. While addressing financial needs can be done in a fairly straightforward manner, addressing emotional needs requires a more subtle approach.
By taking three simple steps, advisers can build both aspects into their value proposition and prospective client touchpoints, such as websites, brochures, initial meetings and follow-up contact.
Step one: Identify how you address the top three client priorities
The top three categories identified in our research are:
Discomfort handling behavioural issues – a lack of confidence that they have the skills needed to reach their financial goals, or a lack of knowledge regarding financial issues.
Behavioural coaching – help acting in a way that is beneficial to their finances, including explaining the financial plan, motivating the client to stick to the plan and providing guidance on what to do (or not do) in certain financial situations.
Specific financial needs – retirement planning, handling life changes or tax management, for example.
Think about everything you do for your existing clients, including both the financial and emotional support you provide. Then sort into the three categories. This will give you a sense of how balanced your offering is.
Step two: Work these into your messaging
Review your homepage, client brochure, what you cover in your initial meeting and how you follow up, keeping the following points in mind:
Discomfort handling financial issues – even though many clients don’t feel comfortable dealing with their own finances, highlighting this may not be constructive as it can reinforce negative feelings. Instead, highlight how your expertise can reduce anxiety, promote peace of mind and help clients reach their goals.
Behavioural coaching – our research found people tend not to like hearing they need behavioural coaching, so language matters here. Colloquial language, adding examples and being clear that these are issues we all face, can help engage investors and bring down barriers.
Specific financial needs – getting beyond the ‘what’ of a financial issue to the deeper ‘why’ that is driving their financial goals can open the door to more meaningful conversations, and a plan that is personalised to their true financial objectives.
Step three: Refine and review to make sure messaging is clear
No doubt you’ll find you have a lot of good information to share with clients. But too much information can detract from your key messages.
Choose your key messages and make sure they stand out clearly. Go back over your content and highlight which text relates to the three categories. Then look at what’s left from a client’s perspective and ask yourself if it’s necessary in this context.
It’s important for advisers to lead with their ability to provide both financial and emotional support when dealing with prospective clients. Our research found clients are more likely to hire an adviser based on emotional rather than financial reasons (60% versus 40% respectively) but the almost exact reverse was the case for leaving an adviser (42% versus 58%). The key is in achieving the correct balance and getting communication right with clients from the outset for long-term, mutually rewarding relationships.
