When a client has a financial dilemma or concern over current market conditions, is your initial impulse to rush right into action and try to solve the problem?
It’s a natural reaction for financial advisors who are driven to find solutions. But sometimes, clients need time to consider their options, and that’s when empathy becomes a valuable tool.
You use your empathy in everyday situations; here are tips for harnessing that emotion in client interactions to make them feel comfortable and cared for. The result can be a better experience for them and for your business.
Ask detailed questions.
Asking detailed questions is the first step in understanding a client’s real concerns. Assuming all clients have the same issues and can benefit from the same solutions may make them bristle at a one-size-fits-all approach. It is better to create empathy by asking questions to delve deeper into each client’s unique objectives, challenges, family situation and values, as these all impact their financial decisions.
Listen.
Avoid the temptation to take swift action after asking questions. It’s better to slow down and process what your clients just shared. Avoid pre-conceived notions and pre-packaged responses. Listen instead and determine if there are additional thoughts or concerns. Resisting the urge to provide advice before finding out what’s most important to the client can foster a stronger bond. As the saying goes, we have two ears and one mouth for a reason — use them accordingly.
Focus on face time.
Be mindful when taking notes or crunching numbers during an in-person meeting. Giving clients your undivided attention can strengthen connections. Exhibit empathy by focusing on what your clients are saying. You can always jot down your notes and document the meeting after they leave.
Remain patient and composed.
Financial advisors are trained to fix problems, give advice and provide direction. Sometimes a client simply wants you to listen and reflect on their situation. By remaining patient and calm — even if the client isn’t — you can gain a full picture of their concerns while taking a step back to see how they connect to each other. This will allow you to suggest coordinated advice and services, rather than tackling one issue at a time.
Treat partners and family with respect.
Empathy needs to extend to include client families. While each client’s situation is different, they may have spouses, significant others, children, grandchildren or all the above. There may be complicated personal relationships to consider. Ask if you’re not sure. Taking the time to figure out family dynamics is another way to build trust and empathy (and possible multi-generational clients). If your client does have a partner, address this person equally during any joint appointment. Couples may have shared goals, but some may not. Explore their wants, needs and objectives both as a couple and as individuals and note their interactions. This will help you determine the support each person needs and expects. By showing genuine empathy in these situations, you can help cement stronger relationships not only with your clients but with those in your client’s orbit.
Follow up.
A key part of building empathetic relationships relies on personal and timely follow-up. This can be a phone call or email letting your client know you are mindful of their situation and any financial challenges. This builds trust, opens communication and dissipates financial fears. The negative emotions clients may experience during economic struggles are temporary, but the support you offer will leave an enduring impression.
Empathy can go a long way, especially when competing for a client’s attention. Nurture long-term relationships by ditching sales pitches and demonstrating patience and understanding. This more holistic approach will help you better navigate your clients’ needs to cultivate fruitful, long-lasting relationships.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.