Helping clients understand who they really are can improve their financial results, said Hugh Massie, founder of Financial DNA, during a talk at the Financial Behavior in Retirement Summit in Chicago on Monday.
Success as an advisor, says Massie, comes down to confidence and emotional engagement with clients. Gallup research shows that by providing client-centric advice revenues will increase 23%. Engaging employees will also improve the bottom line. If advisors engage both employees and clients revenues jump by 240%, says Massie. “Lots of advisors lose clients two or three years into a relationship because they don’t engage them,” Massie explained.
After meeting with clients for two hours advisors only know 10% about them and yet they are responsible for giving them advice. Massie’s suggestion is to give clients a behavioral profile upfront by splitting clients into four categories: goal-oriented, lifestyle-oriented, relationship-oriented, and information-oriented. It’s critical to know, Massie says, whether clients know who they are and what they want. Advisors should also know who they are and how their profile may be different than their clients’. By customizing services, advisors will gain confidence and engage clients.
“It’s about the questions you ask from knowing your clients profile,” Massie said.