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Every advisor wants to convert prospects into clients. But to do so requires a positive interaction with the prospect.
Here are some tips for how you can influence a prospect in a manner most likely to achieve a positive result.
Turn on the dopamine
Vanessa Van Edwards, a behavioral investigator and an instructor at Udemy.com, has found the key to positively influencing people is getting their dopamine pumping. When dopamine is released in the brain, it makes people "feel all warm and fuzzy.”
According to a study by Diana Tamir and Jason Mitchell, researchers at Harvard University’s psychology department, we highly value opportunities to communicate our thoughts and feelings to others. Disclosing this kind of personal information is deemed so important that the authors conclude that "doing so represents an event with intrinsic value, in the same way as with primary rewards such as food and sex."
It's easy to stimulate dopamine. Just ask basic open-ended questions. An advisor meeting with a prospect might stimulate the release of dopamine with a question like: How were you able to achieve your impressive financial success?
Show vulnerability
Many advisors believe they must project an air of supreme confidence and infallibility to win business. According to Van Edwards, the opposite is true. When you show vulnerability, your prospect finds it easier to relate to you. You can multiply the positive effect of showing vulnerability by telling a story. Our brains are conditioned to function in a heightened state of awareness when information is conveyed in a story.
Understand how your prospect’s brain is processing information
There will come a time in your meeting when you will be asked to convey information. When you do, you should be aware of how your prospect’s brain will process the information you present.
John Medina is a developmental molecular biologist at the University of Washington School of Medicine and the author of the book Brain Rules. In an interview with Carmine Gallo of Bloomberg Businessweek, Medina made some interesting observations that I’ve incorporated in my suggestions below:
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When I ask advisors to tell me the average length of their initial meetings with prospects, I get answers as long as three hours. If that sounds familiar, you may be surprised to learn that the brain tunes out after just 10 minutes. Medina discovered that “before the first quarter-hour is over in a typical presentation, people usually have checked out."
If you want to hold your prospect’s attention, shorten your presentation to 10 minutes or break it down into 10-minute increments each preceded by an "engagement device." Telling a story that illustrates the point you'll be making is an effective way to hold your prospect’s attention.
Boring subjects cause the brain to almost immediately shut down. You need to give your prospect a reason to listen to the details of your presentation. For example, if you are going to discuss how a Monte Carlo simulation works, you might begin with a story about passing a homeless person and making a commitment to do everything in your power to ensure your clients will never be in that position. Once the brain understands the point you are trying to make, it will pay more attention to the details.
The more visual the input, the more likely it is that the brain will retain it. According to Medina, people remember about 10% of what is presented orally, at least when tested 72 hours after hearing it. If the presentation included pictures, the retention rate goes up to 65%.
I don't mean to detract from the importance of being knowledgeable in your area of expertise. But to convert more prospects into clients, the peer-reviewed research in psychology is as important as the studies found in financial journals.
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
