Most of our clients come to us with several years’ experience in the business. Their tenure usually has been sufficiently long for them to appreciate that the financial services industry offers incredible potential that they are just not capturing.

They usually have a sense that if they could do a few more of the things that work — and a few less of those that don’t — greatness would be at hand. With that as a background, I was somewhat surprised when I received a call from Kyle, a neophyte who had been in the business less than three months.

I had met Kyle previously at a conference at which I was speaking. He was introduced to me by Carl, a client and a branch manager for a national firm. Carl had been Kyle’s personal advisor but, upon witnessing his personal skills and passion for helping people, had recruited Kyle into the business.

Kyle began our meeting with some small talk. And within a few minutes, I felt like we had known each other forever, as I readily answered his questions about my business and personal life. He seemed sincerely interested in me and it didn’t take long for the 30-year difference in our ages to evaporate. I could see why Carl felt Kyle was a natural for our business.

I finally interrupted: “Kyle, how can I help you?”

“Well,” he began, “as you know, I am new in the business. I truly feel blessed to have this opportunity and I don’t want to mess it up. I am working hard, doing all the things that Carl tells me to do. Some things are paying off, but some aren’t. I have had a number of early successes, but I have also been surprised at some of my failures. I thought everyone would be eager to hear what I have to say to them and would become as excited as I am about what good financial planning can do for them. But it just isn’t so.

“Some of the people I thought I could count on as potential clients haven’t panned out. On the other hand, I have had some pleasant surprises. People have actually called me up to do business once they found out I was in the industry.”

“So you have had some good results, along with some disappointing ones,” I responded. “Did you expect every prospect to become a client?”

“No, of course not,’” he said. “But what I did expect was that there would be a lot more predictability to my business. In my previous career as a pharmaceutical representative, I knew that once I talked to a doctor, I could count on him or her to recommend my products to his or her patients. All I had to do was get the appointment. I established rapport easily and quickly, and I knew the product delivered good benefits to patients. So, it was practically a ‘no-brainer. This business seems so much more complicated. People will listen to you, but not necessarily act.”

“Isn’t it ironic,” I replied, “that in both your earlier career and this one, the products and services you offer are so important to the ultimate quality of life their users will enjoy? I’m not surprised you had high expectations.”

“So, I guess I’m just not as good as I need to be at helping people realize the importance of managing their financial affairs in an orderly manner,” Kyle said.

“I’m not too worried about you in that regard, Kyle,” I told him. “You will get better as your experience grows. Never stop being a student of the business.

“But also bear in mind that the decision to do something to improve their financial condition has, for many people, a different urgency than improving their physical condition. Having a doctor write a prescription on the spot has that ‘hurry up and do it’ or, perhaps, even a ‘life or death’ connotation to it. Creating a financial plan that stretches over years and doesn’t promise tangible benefits until, say, retirement doesn’t have that same immediacy, does it?”

“So, how do I motivate my prospects to take action?” Kyle asked. “Do I need a better sales pitch?”

“I have never been much of a believer in canned sales pitches,” I said. “What I do have faith in, though, is understanding how people make buying decisions. If we know what motivates people to act, we can organize our presentations to ensure we speak to those inner needs.”

@page_break@“So, what’s the secret?” Kyle asked. “Why will some people buy right away, while others delay or don’t buy at all despite all the logic that I apply to their situation?”

“There are basically three truths we need to address in an effective sales presentation, Kyle,” I responded. “All decisions are:

> values-based;

> confidence-based; and

> risk-based.

“Let’s look at values first because they are the most powerful motivating factor. The continuum starts with needs, extends to wants and then concludes with values.

“If someone feels they need something, they will be motivated to buy it, but won’t unless they also want it. And they won’t buy it unless what they need and want is consistent with their values. The people who called you when they heard you were in the business knew they needed what you had to offer and wanted it because it fit with their value of having financial peace of mind. The others who were less responsive haven’t made that connection.”

“How do I determine what people’s values are? Ask them?” Kyle wanted to know.

“That’s one possibility,” I said. “Indeed, listening carefully to how people describe what is important to them is essential.

“Another way is to look at how they currently spend their time and money. Someone who spends extra money on their child’s education or plans extended family vacations probably values security, whereas someone who is a workaholic is more likely to value financial achievement.”

“OK, I get that,” Kyle said. “I have to develop better listening skills and be more observant about what my prospects value. What about the second truth, confidence?”

“That one is almost intuitive,” I said. “Even if your recommendation is perfectly logical and it is obvious to everyone that you are right, your prospect will not act if they lack confidence in you.”

“Does my inexperience in the business hurt me?” he asked.

“It could — unless you find a way to dispel any concerns people may have about it,” I replied.

“How do I do that?” he said.

“While you are relatively new to this field, your organization isn’t,” I said. “Borrow its credibility. Acknowledge that you don’t know everything, but emphasize the expertise of your firm and the associates on whom you can call, if needed. Describe the education and training you have completed. Above all, act professionally. Be on time. Do what you say you will do. Exceed expectations. You will earn confidence.”

“And the last one — risk?” he asked.

“People make decisions based on avoiding risk in their lives. If they believe making a certain financial choice will increase their risk, they will not do it,” I explained. “Research shows that people are much more interested in avoiding a loss than pursuing a gain. Focusing your presentation solely on the expected gain misses the baseline concern. Because high-performing salespeople understand this, they organize their presentations to expose first the risk or potential loss their prospects face by continuing with the existing course of action. Then they highlight the gain that would result from their recommendations.”

“OK, I think I understand all that,” Kyle said. “Can you help me organize my presentation to take all this into account?”

“Certainly, I’d be glad to do that, Kyle,” I said. “You have some innate skills and talents as a ‘people person’. Let’s build your sales process to capitalize on them.”

For the next few hours, Kyle and I structured his interview opening, discovery process and presentation to ensure it responded appropriately to the way people make decisions. He left our office with the confidence that I knew was going to serve him well throughout his career.

Kyle was new to the business, but he was experienced enough in life to know that the sooner a problem was acknowledged and addressed, the less likely it would be an impediment to success.

I knew he would be back at some point in the future with another issue. He was the kind of person who would always want to be the best he could be. IE



George Hartman is a coach and facilitator with the Covenant Group in Toronto. He can be reached at george@covenantgroup.com.