Handling a know-it-all client

However, it’s not always easy dealing with know-it-all clients. Clearing up misinformation, keeping your clients on a relevant topic and steering them back toward their own financial plans can be a challenge.

So, what are you to do when a client thinks he or she is the expert, and not you?

– Never argue with a client. The know-it-all personality sometimes craves a smash-down spat, says George Torok, a business coach in Burlington, Ont. But debating with a client, even if it’s civilized, rarely ends well.

“Let that person talk it out,” Torok says. “They’re going to run out of steam.”

Keep yourself busy, he suggests, by taking notes.

– Get back on track. When there’s a break in the “lecture,” Torok says, use transition phrases to refocus your client gently.

“You have to go where the other person is,” Torok says, “rather than drag them to you.”

Show familiarity with the expressed opinions. Say: “I felt that way when I first learned this, too.” Or “That’s a good place to start.”

– Give homework. Send such clients material on a regular basis, Torok says, especially leading up to meetings. By providing information that you’ve already vetted, you’re reducing the likelihood that your clients will take off on an irrelevant tangent. And you’ll help impress upon your client that you’re the person to turn to for dependable facts relating to your industry.

– Address emotions, not the argument. Knocking down each point, even if it is tempting, is not doing your client any favours. It also is a sign that you may be verging on know-it-all territory yourself.

Instead, try to unearth the emotions behind your clients’ arguments. Sometimes, Hartman says, clients become argumentative or crave the feeling of being an expert when they’re going through difficulties in their private lives.

– Listen, and don’t dismiss the opinion. Brushing off your clients’ opinions would be a mistake, according to Hartman.

“A high-knowledge client has the right to know the facts,” Hartman says. Besides, he adds, listening to what a client is really saying can be revealing.

Try to figure out the motivation behind your clients’ new areas of interest. Are they expressing some new anxiety about finances? Or does the newfound “expertise” reveal something about what’s happening in your clients’ personal lives?

– Use an engagement letter. Engagement letters are the ideal foundation for formalizing the sharing of information between client and advisor.

Too many engagement letters exclude the client’s duties and responsibilities in the relationship, Hartman says, focusing instead on the advisor’s obligations.

A good engagement letter should include the steps your clients need to take in order to keep you in the loop and prevent any gaps in the flow of information. It is these gaps that often lead to miscommunication and disagreements in meetings.

– Know when it’s over. There are times when the dynamic becomes untenable – phone calls become too frequent or heated, or meetings always end badly.

In these cases, you should be able to extricate yourself from the relationship.

After all, Hartman says, the ability to choose clients is what draws many advisors to the financial services industry in the first place.

You have to be prepared to manage your relationships with know-it-all clients. Or move on.

© 2013 Investment Executive. All rights reserved.