In this age of increasing technology many of the traditional duties performed by professionals are becoming more efficient through automation. While efficiency gains are important in business it also means that the customer now has more material at their fingertips than ever before. They have reams of material, but information doesn’t equal knowledge or skill. The difficulty for businesses where technology plays a core role in producing information or providing a
n output for a client is that the output can become commoditised and transactional.
This is further amplified as people become more tech savvy in a world of “I want it now” and a generation that live their lives through a screen. The current empowered generation can review a business online in a few minutes and form an opinion about you well before you have even had the chance to engage with that potential customer. People at this end of the scale I refer to as transactors. They want a solution at a low fee, they want it fast with no fuss and think that the technology provides them with the skill to make effective and fast decisions. At the other end of the scale are the relationship-based clients. They while having access to technology will use this to do their research to validate their decision and then seek out someone to resolve an existing problem.
I note that I used the term “problem”. In all cases people don’t just wake up and decide to do something unless they are motivated. They wouldn’t wake up and say “I need a financial plan” unless something has occurred to motivate them to make that decision. The motivation usually comes from either you wanting to create a pleasurable experience or relieve a painful situation. I am generalising motivational theory here but a “problem”, creates the motivation to do something. As such people will seek out a solution that aligns to what they believe will resolve the issue. Relational people will seek out a solution, business or people that aligns to their belief system. It is more likely that a relational person will do this via their peers. This is why it is so important that in business you create great relationships with your clients. Relationships that lead to referrals and future business aligned to you and your business model.
While making this statement it seems philosophically easy to do, but is it?
Firstly, financial planners are now under more scrutiny than ever before, facing an enhanced compliance regime coupled with technical skill requirements. The changes to the professional standards of new financial planners now means that they are required to complete a bachelor or higher degree e.g. a Bachelor of Business (Financial Planning). This has been the practice for other professional industries like accounting; these qualifications are often defined as “hard skills”. These skills are learned abilities, acquired and enhanced through practice and repetition and maintained with regular technical updates through ongoing professional development. These skills are tested and proven by gaining a certificate or a degree.
Now the really interesting thing here is that “soft skills” aren’t usually a part of this process and yet the so-called “soft skills” are sometimes the defining behavioural trait of the financial planner that defines a relationship with a client and leads to referrals. These soft skills are subjective and while being key people skills; interestingly are never measured. It is rare that a financial planner has their communication skills reviewed. Yet quality financial advice has its emphasis on understanding the client’s needs and wants through the client relationship. Asking questions and understanding the client to gain an insight into their financial needs. So how do we know if we are approaching each client in the way that they want to be approached to get to the core of the client’s requirements if our soft skills aren’t measured? Years ago, I developed a soft skills program. The program had two key components, knowledge; that is the provision of foundation information to enhance soft skills and application; observable in field reviews of how the knowledge was applied. This is no different to say an apprenticeship where knowledge or theory is obtained in the class and then the application is observed in field e.g. the application of the skill is observed.
The process was enlightening for the advisors that followed the program. The usual comment was “I didn’t know that I did that” in response to a post client interview de-brief. The thing that became evident was that while they had gained the knowledge of what to do, the how to do it and or apply what they had learnt was very hard. This is because in most instances they had to change an existing habit or behaviour, re-learn how to interact differently with a client and adapt to each person. The process of advice while having many technical aspects must also be humanistic and have the client feel like you care for them. They need to believe that they are special to you and this requires a very real set of adaptable soft skills. More recently after a coaching session with and advisor they said, “these soft skills aren’t that soft at all!” and then thanked me for opening their eyes to how they can enhance their client interaction. Basically, if a client feels that you are truly interested in them and they are not just a number, they will more likely refer you to their friends and family if you ask them for a referral.
If you would like to know more about the “enhancing client engagement program” drop me a line at brad@insightfulcoachingsolutions.com or call to discuss on 0402 892 714.