5 Wealth Management Sales Mistakes to Avoid

By August 18, 2020July 23rd, 2021No Comments

As smart investing tactics continue to evolve with the times, so too do the motivations and attitudes of financial advisory clients. Today’s high net worth (HNW) prospective clients require a completely different sales approach than prospective clients 20 years ago did. Here are five common HNW sales mistakes that often trip up even confident, savvy veterans. All these mistakes stem from financial advisors not understanding that…

1. Shared values are more important than ever.

Prospective clients care about whether you, the financial advisor, and your firm, put your money where your mouth is. Which causes do you and your firm support? Do you value giving back? Your mission and culture as a company should shine through into your client relationships and create a meaningful impression on your clients. Showcase your values in your marketing material and let your reputation speak for itself. Connect on a deeper level to earn your clients’ trust.

2. Prospective clients just want to be heard.

Time should be spent getting to know the individual, his/her goals, and answering his/her questions—not launching into a 45 minute lecture/presentation. The financial services sales process is daunting enough for prospects. A jumble of words and text just makes it worse. So, come prepared with important questions to prompt discussion, listen, learn, and address any concerns. Showcase how you will put them first.

3. The internet gives advisors who leverage it an unfair advantage.

With the help of retargeting ads and social media, you and your firm can be everywhere you need to be. You can have an automated sales machine running in the background so you don’t have to remember to make those 100 follow-up calls. Time is money, so be smart with your time. Take advantage of online opportunities to stay in front of your prospective clients.

4. In today’s environment, oftentimes less is more.

Clients no longer want stacks upon stacks of information, numbers, etc. They want a clear, concise plan available digitally to peruse and reference at their own pace and in their own time. Whereas once upon a time, beautifully bound, professional-looking binders earned credibility, now those same actions are a sign of wastefulness and being out-of-touch with reality.

5. Be tactful in tooting your own horn.

There’s a delicate balance between showcasing why you’re trustworthy and credible (using articles published, awards won, speaking engagements, etc.) and straight up bragging to your prospective client’s face. Consumers as a whole (not just potential financial services clients) no longer trust anything that comes directly from the company that’s trying to sell them something. Trust comes from people other than yourself singing your praises. Humility is back in style. Actions speak louder than words.

The world is a bizarre place right now. People are nervous, open, curious, and ready to hit the ground running when it comes to making a change in their financial life. Those that are being smart with their sales techniques are reaping the benefits of the current environment.