This article has been written by P V Subramanyam, a chartered accountant and financial trainer.
When I interact with IFAs they have this major complaint: “Many of my clients do not listen to me”. I am sure other professionals such as lawyers, chartered accountants and even doctors, face this issue.
Why does this happen? Well look at your own life – how often do you listen to your parents or spouse or colleagues or friends? Not always, right?
To get somebody to listen to you, they must be convinced on a number of issues which I have presented below.
This individual is competent to advise me.
If you have a tooth ache you go to a good dentist, right? You do not go to your general practitioner or a physiotherapist. You go looking for a qualified individual who can solve the problem. You search for competence in that specific area.
Ditto with your clients. They need to be convinced that you are competent enough to handle their money and they are getting appropriate advice.
Some clients will come to you because somebody sent them. Others may have heard about you and got in touch. A few others may actually believe think that they know more than you. You will meet all sorts of individuals. Don’t get intimidated or impatient or put off. Just do what you are good at doing. Give them the right advice and leave it up to them to implement it or not. Over time they will realise the value of your advice.
This individual understands where I am coming from.
Advisers need to understand that all clients are not at the same level; some are evolved investors, others are far behind. To step into the client’s shoes, you have to remove your own.
Many IFAs forget that the client comes from a different background, has different compulsions, may feel too intimidated to decline an investment product from a pushy bank relationship manager, or may be comfortable with a different asset allocation than the one you have suggested.
Recently, a 64 year old woman was being sold a new fund offering, or NFO. When she did not bite she was pushed a pension plan. Fortunately she called me and I told her the virtues of the word “no”. She did not require any of the products being pushed at her. Her portfolio was actually very good and doing well.
This individual is sincere.
Some advisers do not listen long enough. Naturally, the client will doubt whether the adviser has applied his or her mind to the relevant situation or portfolio. This is by and large a communication problem that can be easily rectified by the professional.
To show their sincerity, advisers must speak the language of their clients and not bombard them with intimidating jargon. The latter tends to put clients on the defensive and then they do not follow through with the suggestions given.
This individual does not push me.
Don’t be impatient with the client. The client may have a huge capacity to take risk but may be reluctant. There is no need to get impatient with the client.
Some clients may just like to do things their own way. You cannot force them to do otherwise. Give your advice and charge your fees but don’t get worked up or lose your temper.
Also, the client may take a while to get things done. If you are a pure adviser, you need to give a client more time to actually do things. Your own office may quickly fill up a form and log in an application the next day, but the client may not prioritise the investments. In such cases you need to be patient (but firm) in the follow up.
Practice patience.