How Investors pick their Financial Advisor

We, the advisor fraternity, leave no stone unturned to have new clients on board, and building our business. But despite our best efforts, sometimes we lose a prospective client. And then we wonder Why? To know Why, we must step in to the client's shoes and see from his eyes, understand his perspective. That's what this article is about. We've tried to read the client's mind and have penned down our observations in this article to help you and provide an answer to your Why?

There are certain key characteristics which the investors seek in their financial advisors. Although many requirements and preferences are beyond your scope, like the client may be looking for someone experienced and you are a new kid on the block, so you can't do much about it. Or he may be looking for someone from the Jain community, but you are from Agrawal community, then too it's beyond your scope. But there are many elements that can be fabricated to meet the customers' preferences. And in this article we've listed down the virtues which our clients desire in their advisor:

Certified: What do you do when you fall sick? You would go to see a doctor. Why? Because the doctor would have an MBBS degree plus a series of certifications, along with his experience, and these factors are behind developing people's trust in him and were behind taking you to his clinic. What if the Doctor has knowledge, experience, but No Degrees, No Certifications? Would you still trust him with your health? Probably No. Similarly, people entrust their wealth with their financial advisor, so they would want the advisor to be certified and experienced. So, if you don't have your certifications yet, get them now.

General Knowledge: A financial advisor is perceived as an encyclopedia, people look up to you to answer their questions, clear their doubts, be it related to their investments or not. So when you meet a prospective client, he would have a lot of questions from you. He may ask you about the impact of the recent election results or the impact of oil prices on the markets, would it be a right time to invest, etc. So, at this point if you give him a blank look because you don't know who won in UP and Punjab, and what's going on with the oil prices, then it may not throw a positive impression. Thus you must read a lot, keep yourself abreast with the latest news and updates, keep your eyes and ears open. Possessing a strong general knowledge will build people's conviction and trust in you.

Professionalism: A very important characteristic that people look for in their financial advisor is Professionalism. They would not take you seriously if you dress informally, have shabby hair and dirty shoes. They would not like it when you walk in without a notepad and a pen, or a laptop and then you meekly ask the client for a pen. You are almost near losing the client, unless a miracle happens. So, remember you must dress to impress, do your homework and be prepared.

Comprehensive: An investor would not want to discuss his finances and his investments and his personal life with too many people. He would like his advisor to handle his investments, his estate planning, will writing, etc. He would not want to go to one person discuss his position and requirements for his investment, and then another advisor for his estate planning, and then narrate his entire history and geography to a third person for his Will Writing. He would welcome someone who is equipped with all of this. So, you must expand your horizon, educate yourself and increase your basket of offerings.

Referrals: Lastly, a very popular method of choosing a financial advisor is word of mouth. Let's say you have bought a new apartment, and you want to design it to give it a nice, chic look. So now you need a good interior designer for the job. So, what do you? You evaluate the designer on the basis of online reviews, on the basis of referrals, so in short on the basis of others' experiences. When a friend tells you, a particular designer is too good and did her friend's house superbly. Half of the designer's job is done, chances are you'll get that designer on board for your house. Similarly, you can increase your chances by providing a delightful customer experience, so that they refer you for your quality of service.

The above are some peculiarities which if worked on, can increase your chances of converting a prospect into a client. We may not have all of them but we can definitely inculcate them as a part of our conducting business and increase our conversion rate. So, blend all of the above ingredients drink the solution, and visit your next client as a more pleasant and proficient financial advisor.

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