When you’re talking to clients, you want to demonstrate to them that you are confident, knowledgeable and trustworthy. Projecting this image means avoiding generalized statements that sound like sales pitches, contradict your firm’s analysts or can result in compliance problems.
The following are three things you should never, ever say to your clients:
> “I know the market like the back of my hand, and now is the best time to invest”
“If you can predict the market, then you’re not of this world,” says Rosemary Smyth, a business coach with Rosemary Smyth and Associates in Victoria.
Instead of claiming to have knowledge, Smyth says, tout your experience.
Remind your client of the years you have logged in the industry, adds Sara Gilbert, founder of Strategist in Montreal, and how that experience has served you and your clients.
For example, you might say: “I’ve lived the ups and downs of the market, which allows me to bring in strategies and solutions that are backed by that experience.”
If you are a rookie, Gilbert says, refer to your ability to bring a fresh point of view and a willingness to try new strategies. Also point out that you have the support of an established firm that has many decades’ experience.
> “You’ll get used to being a high-risk investor”
You learned of your client’s risk tolerance during the “know your client” process. That is when you should have determined whether the client’s acceptance of risk fits your investing style.
Trying to change the client in the middle of the relationship will probably lead to a headache with compliance, Smyth says.
If you’re concerned your clients may fall short of their retirement goals because they want to stick to no-risk investments like guaranteed investment certificates, Gilbert says, you can explain the “opportunity cost.” Compare the projected results of their preferred low-risk strategy with those of a more appropriate plan.
If you are unable to persuade the client to move into the markets, you must accept the client’s decision, Gilbert says.
> “I know my recommendations differ from our analysts’, but the analysts are never right”
If you’re trying to convince your clients that you know more than your firm’s research team, don’t be so sure that they will believe you.
“Clients know that if analysts are there,” says Gilbert, “they’re there because of their expertise and experience.”
If you feel you have a justifiable difference of opinion with your analysts, there is a more appropriate way to approach the situation. Inform your client of your firm’s recommendation but explain why you feel this would not be a suitable choice for your client based on his or her current investment strategy.
“That is going to bring some relevancy to that position for the client’s goals and objectives,” Gilbert says.