" A satisfied customer is one who will continue to buy from you, seldom shop around, refer other customers and in general be a superstar advocate for your business" - Gregory Ciotti
Just imagine you have shifted into a new apartment, and you get up in the morning and your wife asks you to get milk. So, you go to the nearest milk booth which is almost 200 meters from your place and the shopkeeper greets you with a smile and hands over the milk packets to you. The next day, you go to the same milk booth, exchange smiles, buy milk and come home. This continues for 6 months, you greet each other, exchange smiles, talk about random things at times; you have developed a bond with the milk vendor. One day you see that a new milk booth has opened and this one is almost 100 meters from your home, while for the old one, you had to walk almost 200 meters everyday. What would you do? Would you dismiss your earlier booth and buy milk from the new vendor or would you choose to walk another 100 meters? You would go to your old vendor because of the rapport you share, the bond of trust that is built between you and the milk vendor.
This holds true for any business. People buy relationships and not products.
The World is getting bigger, the number of companies and the products are increasing, businesses are expanding as well as getting complex with the advent of new things, new requirements, increasing competition, etc., yet the fundamentals remains the same; working on trust is still the best business strategy.
In advisory business, customer is not just at the center, it is actually all about them. A financial advisor can survive only if he is good at winning the trust of his clients.
How do I win my Clients' Trust?
Each advisor has his own style, personality traits and a set of unique skills through which his clients develop affinity towards him, yet there are certain tried and tested tips which you may apply and win your client's trust:
- Do Not Overcommit & underperform: The primary cause resulting in trust issues between you and your client is committing what you might not be able to execute. He believes in you and if you promise something, you are setting an expectation in his mind and if you are not able to fulfill your promise, your client's expectations are being shattered. There is loss of trust. So, next time if you tell him to invest in a product, he might not do it because he does not trust you anymore. So, be conservative when you set expectations, under promise and over perform.
- Knowledge: This is the basic. An investor is looking for someone who knows about investing, the products available and the ones which are best suited for him. He is not looking for a layman because he himself is one. You should be really strong in technicals, the new products being launched, any important financial news. The point is you should not be blank when your client is in doubt, at any time he shouldn't get a vibe of unawareness. So the client trust you that his money is in the hands of someone experienced and knowledgeable.
- Show them you care: "Your customer doesn't care how much you know until they know much they care" – Damon Richards
Your client must not at any time get the feeling that your inclination towards a product, or your sales targets, etc., are the reason behind him investing. He should be at the centre always. They should feel that you are attentive to his needs and problems. Your relationship with your customer is like your relationship with your wife, both of them should feel that you care.
- Be Empathetic: Learn the art of stepping into his shoes and understanding his perspective. Equity might be an ideal product for him if you consider his age and income factors, but he doesn't want to invest in equities because he wants to contribute this money for his sister's wedding which is happening a year hence. And he is not ready risk his principal. Or may be his father has had a bad experience with equities in the past, so he is unsure. It is your job to evacuate that aversion, explaining the probable reasons for his father's loss and justifying why is equity the best product for him. You must understand his position and advise, so that he is clear and believes in his investment.
- Don't ignore: Don't ever commit the sin of ignoring your clients, especially when there is volatility in the markets. Your clients are concerned because it is their hard earned money which is falling, they are bound to panic. "Do not not respond to their calls", they need you the most, and it is your responsibility to to listen to them, assure them and make them believe in their decisions.
A financial advisor is a combination of Knowledge, experience and Trust. You can win the battle only if you build the right proportion of the three elements.
Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves. ~ Steve Jobs
