Should You Deliver A Complete Financial Plan Before Someone Becomes A Client?
When we recently decided to purchase a Kia Telluride, it was a decision born out of needing that elusive third-row seating without breaking the bank. While a minivan was an option, let's just say it didn't resonate well with Kate; I was, however, silently rooting for it.
But my car buying journey inadvertently turned into a sales process analysis. The procedure was systematic, moving from one phase to the next:
An initial friendly greeting, learning a little about us, and asking what brought us in
Then, there was the test drive – because who buys a car without feeling it on the road?
Next was the price negotiation.
And finally, the finance discussion, laden with upselling attempts for service packages, before handing over the keys.
This process surprisingly paralleled our house-buying experience:
An initial friendly conversation with a realtor, who asked us what we were looking for in a home, the neighborhoods, and the budget
Then, the fun part – touring potential homes, giving them a short 'test ride' since buying a house sight unseen, barring the COVID frenzy, is a rare occurrence.
Next was going back and forth with the seller on price.
And finally, getting a loan, haggling over rates and points, etc.
Then you close, and you get the keys.
And this try it before you buy isn’t just for large purchases.
Consider online shopping: view the attire, buy, try it on at home, decide to keep or return it. Or fragrances – would you invest in a perfume without the initial olfactory experience?
Many software solutions nowadays lure users with a trial period or freemium model, catering to this very 'try-before-you-buy' mindset. Yet, there are still domains where this principle isn't applied. Can you imagine investing in a car without that crucial test drive? It's a significant purchase; hence, the need to be sure is paramount. The same goes for houses and fragrances – recall the cinematic hilarity of Brian Fantana’s cologne mishap in Anchorman?
However, what about when you can’t ‘try it before you buy.’ How does it change our behavior?
A personal experience involved hesitating over an Austin FC jersey purchase online due to the final sale and unfamiliar sizing. The result? A missed opportunity for both the retailer and me. Similarly, in my own business, I delayed a database purchase by a year due to the unavailability of a preview.
Which brings me to a pertinent point for financial advisors: many often wait to deliver a detailed financial plan until a prospect is officially a client. This hesitance may elongate the sales process or even send potential clients to competitors. Prospects aren't looking for freebies but rather a glimpse of the advisory journey ahead.
Illustrating your benefits verbally or written down on a one pager is like a car dealer saying a vehicle 'just drives' and handing you the brochure. It's not enough! The tactile experience, the 'test drive,' makes all the difference.
Financial Advisors, I implore you: Offer your clients a sample of the experience. Request the necessary financial documents and give them a tangible representation of your service. This approach will ensure a higher client conversion rate and streamline onboarding. After all, when clients trust you with their dreams and financial futures, they deserve a preview of the journey ahead.
From my experience as an advisor, I can't recall one time someone took advantage of me delivering a free financial plan.
The effort is always worthwhile.
Clayton Boone is the founder of Ring The Bell Coaching. He lives in Austin, TX, with his wife, Katelyn, their two boys, Remington and Lincoln, and their Labradoodle, Dallas. He can regularly be found building Legos, painting Warhammer 40k, or outside with his boys, enjoying a good Friday Happy Hour with Kate, or riding his bike around Austin.
Ring The Bell Coaching provides Financial Advisor Coaching and Training in four categories.
Business Development
Written and Verbal Client Communication
Sales Process and Automation
Leadership Development
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