Ditch the pitch

During the question period after a talk I gave recently, I was asked about the worst advice I’d seen recently for financial advisors looking to attract new clients. There’s no shortage of candidates. Most of what’s written about closing techniques and many of the suggestions about extracting referrals from clients come to mind.

But my answer didn’t focus on those. Instead, it related to a couple of articles I’d read in the past while regarding the need for advisors to construct an effective elevator speech.

The main point of these articles was that during opportunities to network, advisors need to articulate succinctly how clients are better off as a result of working with them.

My conclusion from reading those articles is that when taking this approach, you risk doing more harm than good. In my view, when you are asked what you do, rather than launching into an explanation of the benefits you provide, you’re better off to keep your message brief and to the point; then, as quickly as possible, ask a question in reply.

Here’s why:

– THE ELEVATOR SPEECH IN BRIEF

The concept of an elevator speech is dead simple. Imagine you’re waiting for an elevator. Just as it arrives, someone joins you. When you look at each other, you both recognize a university classmate from 20 years ago.

From articles in the press, you know that your former classmate – let’s call him Bill Smith – is the successful CEO of a high-tech startup. He, on the other hand, has no idea what you do.

“Dan Richards,” Bill says as you both step into the elevator and it starts to descend. “What a small world. Tell me, what have you been up to?”

If you listen to some experts on this topic, you now have 10 to 15 seconds to answer in a way that communicates how your clients are better off as a result of your efforts, and in a fashion that will intrigue and engage Bill and open the door to the possibility of a conversation about working together.

– HOW I HELP…

In one video by a self-styled expert, professional service providers are urged to focus on the outcome they create rather than what they do. For example, if you help people organize their homes and offices, you “create time and space in the lives of the clients [you] work with.”

Or, if you’re a divorce lawyer, your answer should be something along the lines of: “I help people navigate through one of the most difficult times they’ll experience, helping clients make smarter choices so they can go on to happier lives.”

Here’s another take on how you should answer the question about what you do. In an article in a leading publication for financial advisors, a consultant suggested that if you target women going through divorce, your elevator speech should be something like: “I work with women who are suddenly single and ready to take charge of their lives and their finances.”

This consultant goes on to lay out a scenario in which two advisors are at a conference for physicians. During a reception, a doctor asks each of them what they do.

The first answers: “I’m a financial planner” – thus bringing that conversation to a rapid close.

The second advisor’s reply is quite different: “I help doctors develop a prescription for their retirement and make sure they can enjoy it fully by solving the three most common problems they typically face as they retire.”

The author of this article suggests that a doctor is much more likely to want to pursue a conversation with the second advisor, who has provided a compelling reason to talk further.

To which I say, “Not so fast.” There’s one big problem with this suggestion and others like it: quite simply, they contradict your primary goal when meeting someone new, which is to position yourself as a professional. In my view, the big downside to these kinds of responses is that instead of communicating that you’re a professional, they scream”salesperson.”

– POSITION YOURSELF AS A PROFESSIONAL

Remember, if you want to be viewed as a professional, you have to act like a professional.

I’ve written in the past about the “private banker’s rule.” Private bankers dealing with affluent clients are good role models for financial advisors. Whether dealing with prospective clients or existing clients, you should behave like a private banker at an exclusive financial services institution or like a partner in a large law firm or accounting firm in order to be viewed as a professional.

That rule applies to the appearance of your office, how you dress, how you and your staff greet clients, the jokes you tell and the language you use.

And if you can’t imagine a private banker, lawyer or accountant saying or doing something, then chances are you shouldn’t, either.

Imagine that you’re at a conference for financial advisors and, during one of the breakout sessions, you find yourself sitting beside someone you don’t know. You notice from his badge that he has CA beside his name and, after introducing yourself, you ask what he does. Consider three responses:

The first response: “I’m an accountant with the firm of Richards Carruthers Thompson.” I think we’d all agree, it can’t get much more boring than that.

The second response: “I help financial advisors navigate the complex issues around financial management for their practices so their time is freed up to work with clients and to spend more time enjoying their lives. Quite simply, I worry about their financial affairs so they don’t have to.”

And the final answer: “I’m an accountant who specializes in working with financial advisors to address some of their unique challenges.”

To which of these would you be most likely to provide the response: “That’s interesting, tell me more” – the response that everyone in a networking situation hopes to hear? And which of the three answers are you most likely to hear from a private banker?

I’d suggest that most of us would pick the third answer. Even though it describes what the accountant does rather than the outcomes for his clients, this answer positions him as a professional and provides a reason to talk further without subjecting us to what feels like a sales pitch.

– YOUR GOAL WHEN MEETING SOMEONE NEW

Remember, whenever you meet someone who could be a possible client, whether it be a long-lost university classmate whom you encounter walking into an elevator or a potential client you meet at a conference, you have only two goals:

First, to position yourself as a professional who might be able to help him or her at some future point.

And, second, as quickly as possible, to get the other person talking, by asking: “And how about you, what do you do?”

That’s it. Those are your only two objectives when meeting someone for the first time. Naturally, you want to avoid the boring, conversation-stopping response of “I’m a financial planner.” But you also don’t want to launch into an unnatural, artificial spiel that screams “salesperson.”

As you think about your own answer to the question “What do you do?” formulate a short response that conveys what you do while still positioning yourself as a professional.

The private banker’s rule can provide some useful guidance. As you run through the possible answers in your head, consider whether they’d fit with a private banker for upscale investors, an accountant or a lawyer. If you feel your responses do not fit, then think further to ensure that your “elevator speech” doesn’t leave conversations with prospective clients at a dead end.

Dan Richards is CEO of Clientinsights (www.clientinsights.ca) in Toronto. For more of Dan’s columns and informative videos, visit www.investmentexecutive.com.

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