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Dan’s new book for millennials, Wealthier: The Investing Field Guide for Millennials, is now available on Amazon.
Successful advisors are persuasive. They understand persuasion is critical to converting prospects into clients and keeping them as clients.
Is it a rational analysis of evidence or an emotional reaction that triggers a change in an opinion? That varies, depending on the prospect.
The power of personal relevance
Persuasive messages are most effective when they resonate personally with the recipient.
Researchers (discussed here) discovered a pattern by asking people to write their thoughts while reading persuasive messages. They found messages connected to the participants were more successful at changing their opinions.
You can harness this finding by sharing personal stories about your clients’ experiences. If you’re advising a young family on college savings, share a story about how you managed your finances to save for your children’s education. It will make your advice more relatable and impactful.
Neuroscience and persuasion
Advancements in neuroscience have allowed researchers to delve deeper into the mechanisms of persuasion. Modern techniques like brain imaging have provided a window into how our brains process persuasive messages. One particular area of interest is the ventromedial prefrontal cortex (vMPFC), a brain region involved in self-referential thinking and evaluating the world around us.
Research led by Dr. Emily Falk and her colleagues has shown that the vMPFC plays a crucial role in persuasion. In one study, smokers were shown animated anti-smoking advertisements while their brain activity was monitored. The findings revealed that higher activity in the self-reflection areas of the brain correlated with a more significant reduction in smoking habits, underscoring the idea that messages prompting self-reflective thinking are more persuasive.
There’s additional evidence that tailored messages “activate the same focused brain areas that we know enhance persuasion.” Here’s how to use this finding:
Instead of discussing generic retirement plans, tailor your discussion to show how a specific strategy would work for their unique situation. Use phrases like, “Imagine you are retiring in five years with enough savings to travel the world. Here’s how this plan can get you there.”
Is your prospect emotional or rational?
An emotionally inclined person might be more persuaded by an advertisement for a luxury car that emphasizes the feeling of freedom and status. However, a more rational thinker might be more persuaded by an advertisement that emphasizes the car’s safety features and fuel efficiency.
Wealthier:
The Investing Field Guide for Millennials.
Why have so many financial advisors agreed to review an advance copy of Wealthier: The Investing Field Guide for Millennials. It empowers millennials to be responsible DIY investors and financial planners. You can see some of their reviews here.
Dan’s new book for millennials, Wealthier: The Investing Field Guide for Millennials, is now available on Amazon.
Here’s what one advisor said: "Saplings grow into trees. We need to help the next generation of investors get to where they need our services."
For more information, visit the website for Wealthier:
To review Wealthier send an e-mail to: [email protected]
How would you know which category best describes a particular prospect?
- Ask open-ended questions and observe their responses.
- Inquire about their motivation for considering certain financial products or investments.
- Discuss the emotional and practical aspects of financial decisions.
- Pay attention to their concerns and priorities during these discussions.
If the prospect responds with statements like “I just have a gut feeling that this investment will be successful,” or “I like the idea of owning a luxury item like that,” they likely make financial decisions emotionally.
Responses like “I have thoroughly researched the historical performance of this product,” or “The practical benefits of this investment align with my long-term financial goals,” suggest a more rational approach to decision-making.
Tailor your communications
For emotionally driven clients, focus on how financial decisions can bring joy, security, and peace of mind. Share stories of clients who achieved their dreams through sound financial planning, highlighting the emotional benefits.
For rational thinkers, emphasize data, logical arguments, and clear evidence of the benefits of particular financial strategies. Present case studies and statistical analyses that demonstrate the effectiveness of your advice.
Self-reflective thinking
Encourage clients to engage in self-reflective thinking. Ask questions that prompt them to consider how financial decisions align with their goals and values.
This may be a question like "How does this investment strategy fit with your long-term vision for your family's future?”
This type of question helps activate the self-referential brain areas, making your advice more persuasive.
Final thoughts
The evidence is clear: persuasion is most effective when it is personal. Financial advisors who tailor their messages to align with their client’s unique values and preferences will find greater success in influencing decisions.
By understanding and leveraging the personal nature of persuasion, advisors can build stronger client relationships, foster trust, and, ultimately, help clients achieve their financial goals.
Dan coaches evidence-based financial advisors on how to convert more prospects into clients. His digital marketing firm is a leading provider of SEO, website design, branding, content marketing, and video production services to financial advisors worldwide.
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