Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here.
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This week I will share some tips on how to deal effectively with difficult clients. I receive a number of inquiries every week on this topic and it is one of my favorite ones!
The one universal experience in life is encountering difficult people. They are everywhere. For financial advisors, a client who is difficult is costly in a number of ways. They might be brusque and aggressive with your staff, not respond to your follow-ups and hence never get anything accomplished, not listen or be indifferent.
It would be nice to eliminate them, but another one always takes their place.
Rather than reject, or try to avoid, difficult people, find ways to work with them with the objective of changing the interactions to something positive. In some cases, a client may be so abusive that it makes sense to politely ask them to leave, but in many cases there are turning points you are missing and the situation could correct with the right steps. Let’s look at some steps to take to be more efficient and effective at dealing with the difficult ones, and see if you can’t at least minimize their numbers!
I talk about the process of dealing with difficult clients going to “ARTICA” because it is an acronym for steps you need to take.
Start by Acknowledging the other person’s viewpoint. When someone is difficult it is the natural tendency to shut them down and stop them from being difficult. But, most clients are difficult because they are reacting to something. They are typically fearful (“what if I lose everything and have to live on cat food the rest of my life?”) or experiencing resistance to change or dealing with other negative reactions. Depending on someone’s style this could either make them shut down or act out. Instead of reacting, which is the natural response for most advisors, seek to understand and acknowledge they have a right to their experience. It isn’t about you.
Reflect and connect to meet them where they are. You do not have to agree – you know you are an excellent advisor and would never leave them eating the cat food in their retirement, but you can find a common ground. Connect to other clients’ experiences – “I have worked with others who have had similar concerns” and reflect why it could be real for them, “I can understand, if someone isn’t involved in the day-to-day as we are, why it would seem risky and concerning. Let’s investigate your perspective a bit and find more information I can share.”
Think “why?” Instead of assuming this is about you and becoming defensive, find a way around the issue, or provide the information to the client to prove the client wrong. Ask what’s driving this behavior. Have they read new information somewhere that is concerning? Have they had a bad experience with another advisor in the past so they are jaded? Have they watched the market fluctuations and are they ill at ease? The more you can operate with an air of curiosity the better you can understand their viewpoint.
Inquire in order to learn more about the issue before you judge it or even to try solve it. If you “think – why?” you will want to ask questions to learn. But you have to do this with an objective, open-minded approach. Don’t ask questions just to prove a point or make a case, ask with sincerity. It’s very possible you will learn something you never expected about your client.
Confirm whether you can change or shift something. Ultimately, just understanding the client might not be in their best interest. They may need information, guidance, education or support. But you can’t give this to them until you confirm whether there is a place for you to do this. They have to admit they want the help and are open to receive it. Once you have better insight and perspective, see whether they will let you help them shift something.
And then the final Act. This is where you do what you can do, meet them where they are and give them the tools or information to help and let them know you are in their corner and want to be their partner, not their detractor.
In order to complete these steps, as their advisor, you have to watch your own reactions. Part of why most people struggle to deal with the difficult clients is that they trigger something that creates a negative reaction. In order to break the cycle step out of this and into your ARTICA for success.
Beverly Flaxington co-founded The Collaborative, a consulting firm devoted to business building for the financial services industry in 1995. In 2008, she co-founded Advisors Trusted Advisor to offer dedicated practice management resources to advisors, planners and wealth managers. She is currently an adjunct professor at Suffolk University teaching undergraduate students Leadership & Social Responsibility. Beverly is a Certified Professional Behavioral Analyst (CPBA) and Certified Professional Values Analyst (CPVA).
She has spent over 25 years in the investment industry and has been featured in Selling Power Magazine and quoted in hundreds of media outlets, including The Wall Street Journal, MSNBC.com, Investment News and Solutions Magazine for the FPA. She speaks frequently at investment industry conferences and is a speaker for the CFA Institute.
Read more articles by Beverly D. Flaxington
Beverly Flaxington is a practice management consultant. She answers questions from advisors facing human resource issues. To submit yours, email us here. 
