A Great Way to Close the Business – Converting Prospects to Clients

Some Financial Advisors find converting prospects to clients challenging. This paper will discuss a great way to close a prospect and make them a client.

Converting Prospects to Clients

You have planted seeds and a qualified and quality “suspect” has agreed to meet with you. They are now prospects. We start the 3-Part Meeting Process:

1. Part One -- In-depth discovery of your prospects as people. See https://www.coachdavidleo.com/articles/how-to-conduct-effective-prospect-discovery-meetings
2. Part Two -- In-depth discovery of the prospect’s current life and financial situation and their desired life and financial future
3. Part Three -- Presentation and acceptance of your specific and personalized plan for their future financial and life situation. That’s what this paper is about!

From the data and information gathered in meetings one and two, I recommend putting together what I call “Our Initial Wealth Management Recommendations.” You will use this “report” or presentation as talking points to gain the final acceptance of your “specific and personalized plan” for the prospect’s future financial and life situation.

Obviously, a key to the “report” is having gathered all the data and information in your discovery meetings. At each point in the “report” discussion, you should seek understanding and agreement from your prospects, e.g., Does this make sense to you both? Do you agree with what we are saying? Do not proceed until you get two yeses. First, if the point doesn’t make sense, understand why and clear up any confusion or disagreement. If the prospect doesn’t agree with the point you need to find out why, overcome any objections and gain agreement. Without agreement, the client may be saying this point is not important to us. For example, say the prospect doesn’t agree with the point “the best results are achieved by carefully constructing a plan and then following that plan consistently over time.” If you can’t “sell” the value of a plan and a plan is central to your value and differentiation, you may not have a good fit. If you get disagreement on enough of your key recommendations, you may not have a good prospect for your business model.

Following is the outline of the plan. The level of detail in each section may vary with how much detail you want to share prior to the prospect committing to become a client. There is little risk in feeding back information you were told, e.g., detail about individual family members and their situations and goals. Detailed portfolio recommendations are not necessary at this point, though asset allocation recommendations based on your discovery process are recommended. The question is what will it take to show your in-depth of understanding of the prospect’s wants and needs. Clearly, you are giving something of value in a detailed report because it shows a holistic perspective of what the prospect needs to implement that your competitors may not have considered at least in as structured a way.

The “report” can be a detailed Word document, a PowerPoint, a flip chart stand up discussion or any or all of these three modes. This can be done live (best choice) or via video conference. I highly interactive conversation is strongly recommended. You can provide a “takeaway” or not. If you prefer not to provide a “takeaway”, a flip chart stand up discussion works great and it’s the most interactive.
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• Introduction – Based on our discussions to date, we strongly believe that the best results for you and your family will be achieved by a carefully constructed plan and then following that plan consistently over time.
  1. Our plan will provide long-term discipline for your wealth management and investment decision-making. It will assure that rational analysis is the basis for your financial decisions, making you less likely to act on emotional responses to short-term or one-time events.
  2. It will encourage our two-way effective communication and minimize any misunderstandings that may arise. I want to make the point right here that my goal is to be the financial advisor to each of you, not only Carol’s and not only Herb’s. We are here equally for both of you whether we chat one-on-one or together though it is preferable that we meet and speak together.
  3. The plan will allow both of us to accurately review your critical factors, as they most surely will change over time. We therefore commit to at least an annual review of your plan and reconstructing it if and when needed.

Therefore, based on what our discussions showed, our first step will be to further detail your Wealth Management plan that we are summarizing today.

Have we captured your thinking correctly? Does this make sense to you both? Do you agree with what we are saying? On a scale of 1 to 10 (10 high), how important is this to each of you?

(Ed: An idea is to record on a “flip chart” the rating of each point in your plan. It will help when you summarize and shows how important your plan is to the prospects.)

• Our N-Step Approach – To me, this is an optional diagram of your firm’s 4, 5, 6, etc. step Wealth Management process. It may include words like; Understand Needs, Establish Goals, Create Strategy, Implement Solutions, and Measure Progress. Every firm has a similar diagram so I don’t find the diagram overly helpful nor differentiating. You may have one or find hundreds with a Google search for “image wealth management process steps.”

https://www.google.com/search?q=image+wealth+management+process+steps&tbm=isch&source=univ&sa=X&ved=2ahUKEwjIpbSkx9HnAhUoc98KHRSIDH0Q7Al6BAgJEBk&biw=1920&bih=937

• Objective of Client Profile -- We can meet your needs, individually, collectively and as a family only when we know you and your unique life situation well. Let’s review our understanding from our discussions to date.

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• Summary Of Your Profile -- In our Discovery Meetings, you shared with us many important insights into your financial situation, the challenges you face and the goals you seek to accomplish. The summary below reflects our understanding of these issues. We can’t detail all the elements in this paper but highlights are:
  1. Financial Plan Components and Recommendations – Goals, cash flow needs over time, net worth, estate plan, legacy
  2.  Risk Management Components and Status and Recommendations -- Lifestyle Protection, Income Risks, Expense Risks, Assets and Investment Risks, Credit and Debt Risks
  3. Investment History and Perspectives and Recommendations -- Risk tolerance, other
  4. Financial Wants and Needs and Recommendations – Security, Emergency reserves, Flexibility
  5. Retirement Accounts and Goals and Recommendations -- 401K status, Savings Discipline, History, Investment Approach
  6. Client Service Wants and Needs and Recommendations – Contact, Planning, Administrative and Education needs, Advisor Interface/PCFO
  7. Planning and Review Desired Deliverables and Recommendations -- Strategy Alignment Sessions, Performance  tracked, change management

• Life and Family Goals – Vacations, Education, Personal, Finances, Budget

• Family Relationships and Recommendations – Children, Parents, Other, Special Needs

• Current Assets – Cash, Retirement, Retirement, Real Estate, Education, Other

• Current Advisors and Professional Relationships and Recommendations

• Personal Interests

• Family Background

• Our Role As Your Personal Chief Financial Officer -- Your wealth management plan will guide us for your, Wealth enhancement aims, Wealth transfer goals, Wealth protection needs, Charitable giving, etc.

• The Investment Plan      
  1. Current Situation and Key Findings          
  2. Financial Goals 
  3. Our Recommendations including Asset Allocation, Diversification, Risk, etc.

• Strategic Portfolio Management Process              

• Investment Advisory Fees           

This Initial Wealth Management plan is about developing a realistic and informed perspective
and approach on how together we can put all of your financial resources to their best use by:

• Providing a roadmap for your financial life.

• Making sure all parts of your financial life are working together.

• Creating a base for a comprehensive[1] and dynamic plan that will change as one’s life changes and showing you what you must do to reach your goals now and in the future and what you must do to reach financial success however you describe it.

Let’s review.

• Have we accurately captured your thinking and answered all your questions?

• Does what we presented make sense to you both?

• Do you agree with what we are saying?

• On a scale of 1 to 10 (10 high), how important is this to each of you?

• If you succeed on these priorities, what will get better? What's the upside you'll achieve?

• What negative consequences will you avoid if you succeed on those priorities? What's the downside?

• Are you willing to dedicate the time and effort to really stick with the plan?

If you have received positive feedback during the presentation/discussion of the “Initial Wealth Management Recommendations” as well as during the review and you have addressed all concerns and objections, you can now ask the prospect if they are ready to become clients.
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• Are you ready to get started?

 
 
David I. Leo
David Leo is Founder of Street Smart Research Group LLC. He is an author, speaker, coach, consultant and trainer to financial professionals. David is an experienced business manager who works solely with Financial Advisors, Planners and firms who want to organize, structure & grow their businesses by attracting, servicing, and retaining affluent clients.
If you would like additional details or have any questions about his articles or an interest in coaching schedule a free 45 Minute Strategy Session @ https://calendly.com/davidileo or contact him @ [email protected]. Call 212-598-4229 (Office) or 917-379-1249 (Cell) and visit @ www.CoachDavidLeo.com