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To convert prospects into clients, you need to make an emotional connection. Lecturing, educating, presenting data or otherwise demonstrating your superior expertise in financial planning and investments will not achieve that goal.
Blair Kidwell, an assistant professor of marketing at the Ohio State University, and Jonathan Hasford, an assistant professor of marketing at Florida International University, discussed the importance of emotional ability and non-verbal communication in an article that I recommend every advisor read.
Kidwell and Hasford believe a salesperson with high emotional ability is "significantly more likely to influence a customer." They define "emotional ability" as "the ability of an individual to use emotional information to achieve desired outcomes." They present four areas in which emotional ability influences sales:
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Perception of similarities: You’re off to a good start if you and your prospect perceive yourselves as being on the same social level. If you have additional similarities or share interests the possibility of mutually positive feelings increases.
Physical characteristics like hair length, race or gender also play an important role in how you will be perceived. As a general rule, we tend to like people who look, act and talk like us.
Inspirational appeals: An inspirational appeal is defined as "a request or proposal that arouses enthusiasm by appealing to a target's values, ideas, and inspirations.” When used in a non-manipulative manner, such appeals are highly relevant to advisors. For example, showing a prospect how she can leave a charitable legacy may resonate far more profoundly than discussing historical risk and return data.
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Emotional convergence: Kidwell and Hasford believe when the salesperson and customer have similar emotional ability, "the customer feels more comfortable and understood, and consequently the customer is likely to feel that value was maximized in the exchange."
We've all had the experience of meeting someone for the first time and feeling an immediate connection. When this occurs during an interaction with a prospect, the possibility of potential conflict is reduced because the salesperson has established a relationship of confidence and trust.
You can't relate to a prospect on an emotional level unless you've taken the time to understand him or her. Doing so involves intense listening, eliciting information rather than lecturing and paying close attention to not just verbal cues, but non-verbal ones as well.
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The influence of environment: Your environment communicates powerful non-verbal information that can have a profound impact on outcomes. Have you taken a hard look at your office lately? Your artwork, wall colors, furniture and accessories all combine to create an impression (both positive and negative). Your office should convey, in an understated way, strength and sophistication.
No aspect of your office environment should be overlooked. The way all of your employees dress (including support personnel and especially your receptionist) makes a statement about your firm. Serving coffee using fine china rather than Styrofoam cups also sends a message that you care about details.
It’s difficult to overcome the negative first impression of a cluttered, unprofessional office.
By focusing on all aspects of your emotional ability, you can significantly increase your chances of converting more prospects into clients.
Dan Solin is the director of investor advocacy for the BAM Alliance and a wealth advisor with Buckingham. He is a New York Times best-selling author of the Smartest series of books. His latest book is The Smartest Sales Book You'll Ever Read. He limits his sales coaching practice to advisory firms that advocate evidence-based investing.
Read more articles by Daniel Solin
