As a young financial advisor, having good technical knowledge is important. But that can get you only so far with clients, no matter how enthusiastic you are about building your business. You also will need so-called “soft skills,” which will allow you to establish and maintain long-lasting relationships with clients.
Joanne Ferguson, president of Advisor Pathways Inc. in Toronto, describes soft skills as “how you dance with clients.”
These skills are the things you do to make your clients comfortable, how you communicate with them, show respect and appreciation and earn their trust, she adds.
“If someone is to trust you with their life savings,” says Jonathan Rivard, financial advisor and regional leader with Edward Jones in Richmond Hill, Ont., “then a rate of return is not the only thing that will matter to them. [Rather], it’s how they see and value you as a person.”
What are the most important soft skills, and how can you develop them?
“Listening is, hands down, the most important soft skill,” Ferguson says.
Listening attentively demonstrates that you value your client’s story and that you will strive to earn their confidence and trust, says Nadira Lawrence-Selan, marketing and communications consultant with Hathleigh Consulting in Woodbridge, Ont. Do not interrupt while clients are talking and avoid distractions.
Be careful not to dominate the conversation, adds Robert Ruffolo, senior vice president and divisional sales manager with Franklin Templeton Investments Corp. in Montreal: “You would raise red flags if you do most of the talking.”
George Hartman, managing partner of Elite Advisors Canada Inc. in Toronto, also cautions against giving in to the urge to impress a new client by dominating the conversation.
As a young advisor, Hartman notes, “you must dampen your enthusiasm to demonstrate everything you’ve learned without listening to what clients have to say. You must be respectful of clients’ opinions, if they are different from yours.”
Ruffolo cautions that if you are a Type A personality, a person who typically is self-motivated, you may have a tendency to want to take charge and tell clients what to do. Instead, he says, you should be especially careful to exercise self-control and ask questions.
Show understanding by validating what clients have told you, Ruffolo suggests. For example, you might paraphrase what the client has just told you by saying: “If I understand you correctly, then….”
You also may indicate that you understand or agree with what a client is saying by smiling or nodding. “This is one of the easiest ways of conveying acceptance,” Lawrence-Selan says.
Hartman suggests that you must know what questions to ask when finding out about clients. Your ability to probe deeper by asking open-ended questions can go a long way toward helping you get the answers you are seeking.
For example, Lawrence-Selan says, you can ask a client a simple question, such as: “Tell me more about what you plan to do in retirement” and thus get detailed answers about all of his or her plans.
You also get the opportunity to carry on a conversation by sharing your own thoughts. Indeed, the ability to have a conversation is one of the more important soft skills young advisors need to develop, Lawrence-Selan says.
Ruffolo advises that you show empathy in clients’ difficult situations. You can’t simply point out what they did wrong; you must be able to demonstrate that “you understand their pain” in order to rebuild their confidence, Ruffolo says.
Never contradict clients openly; rather, show that you understand why they might have done things a certain way. On the other hand, compliment clients for making good decisions in an honest and sincere manner without being patronizing, Lawrence-Selan says.
Learn to use narrative as a teaching tool. As a young advisor, you might not have many client success stories to tell. However, your ability to tell stories, either about yourself or any unique client situation, will allow you to establish an emotional bond with your clients.
“Believable stories are a powerful way to build relationships,” says Lawrence-Selan.
You also must demonstrate self-awareness, suggests Rivard. Doing this includes considering how clients perceive you and the value that you offer to them.
Ferguson suggests that you must be able to demonstrate your appreciation of clients to them, especially for the ways they are helping you to build your practice – for taking the time to meet you or for making referrals, for example. Clients who feel appreciated are more likely to provide you with more referrals, she notes.
The words you use, the tone of your voice and your body language are other soft skills that can influence clients to choose you as their advisor, Lawrence-Selan says.
Over time, advises Hartman, these all-important soft skills will improve with experience and practice.
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