Winning new business hasn't ever been easy for financial advisors. The landscape is challenging, and prospective clients have many options. The rise of online financial advisors (aka robo-advisors) hasn't helped.
Breaking the ice with new and prospective clients is paramount as you seek to earn their trust and solidify their business. Carla T. Adams, the founder of Ametrine Wealth and certified financial planner, said many people are nervous when talking to financial advisors for the first time. "I like to set the tone for our relationship going forward, setting the client at ease and letting them know and feel that their goals and dreams are important to me," she said. "The more they are able to open up to me about their hopes and dreams, the more I am able to help them achieve these goals from a financial perspective."
In today's competitive landscape, mastering the art of fostering more-than-transactional client relationships is very important. It's also what consumers say they look for in financial advisors. According to a Vanguard study, about three-quarters of them say they want most from a financial advisor to "develop a connection/relationship.” Having a client-centric approach is thus crucial for financial advisors who want to lead off successfully with new clients and lay the foundation for a productive, trusting connection.
Drawing on discussions with financial advisors worldwide, here are ten tips for financial advisors when starting with even the frostiest new clients or prospects.
Key Takeaways
- While financial markets can come off as a cool and calculated numbers game, being a financial advisor is far more about human relationships and communication.
- While studies show robo-advisors are not too far behind their human counterparts in terms of how consumers rank their knowledge, far more say they prefer human advisors, preferring the trusting relationship one can have.
- Finding new prospects or keeping up with clients means that you'll often find the need to break the ice and generate conversation.
- Each client has different goals and risk appetites, so advisors must get to know clients well to serve them better.
- A strong rapport with your clients often gives them more confidence in your management.
1. Send a Mini-Questionnaire Beforehand
Joshua Nash, a chartered financial planner in Dubai,said he likes to send prospects a mini-questionnaire beforehand. “This sets the tone and also provides a mutual structure/starting point for the meeting. This, in a way, is a pre-ice breaker. As with most questions, it is how you ask, not what," he said.
Do some research on prospective clients before meeting them. A quick online search can give you quite a bit of information, which can help you personalize pitches and could make the difference.
2. "Tell Me About You"
Gregory G. Guenther, a financial planner at Grantvest Financial Group in Matawan, New Jersey, said he tends "to focus on open-ended questions and actively listening," which helps open clients up. Minesh Patel, a chartered financial planner in Hertfordshire, England, agreed. He said the best way to start is with an open-ended question that encourages new clients to speak freely about themselves. "Tell me about you. This simple question gives a hook for conversation and sets up more questions,” he said.
Patel suggests new clients talk about hobbies, interests, their next vacation plans, and other personal matters before getting down to finances. This helps build trust and rapport, setting the stage for a more productive and collaborative relationship. As the conversation progresses, advisors can gradually steer the discussion toward the client's financial goals and values, using the insights gained from their personal stories to provide more tailored and practical advice.
3. "If You Won the Lottery Tomorrow, What Would Happen Next?"
A powerful way to break the ice with new clients is by asking thought-provoking questions that move them to share their aspirations. Nash told us that a question he loves, but that should be asked in the right way, is, "If you won the lottery tomorrow, what would happen next?" He explained, "This gives you insight into what the prospective client actually cares about over money and what is truly important and valuable to them."
This question encourages clients to think beyond their immediate financial concerns and explore their deeper motivations and life goals. This also shows you're not just focused on the numbers but are genuinely invested in helping them with their most meaningful goals.
David Flores Wilson, a certified financial planner at Sincerus Advisory in New York City, said another reason to start this way is because objectives aren't set in stone. "Goals change over time," he said. "So, before diving into goals, I want to know what their personal values are and what's important to them. At several points in the initial conversation, I'll ask, 'So what else is important to you?' to peel deeper beyond their initial answers."
Another way to get clients to open up is to ask about their families. Many clients start talking about saving when they mention their children.
4. "What Would You Love To Talk About In 5 Years?"
Another effective icebreaker question that can help financial advisors gain valuable insights into their clients' long-term goals is, "What would you love to talk about during an update meeting with you in five years?"
Teresa Bailey, a senior wealth strategist at Waddell & Associates in Nashville, Tennessee, said this query is often very successful at eliciting good responses from clients. "This is my favorite question. Typically, everyone is so caught off guard they think bigger than from a more traditional question, such as 'Tell me about your goals.'"
Several financial advisors we contacted use similar queries. For example, Bridget V. Grimes, founder of Wealth Choice in Coronado, California, a firm that focuses on executive and professional women, said, "We’ll ask, 'If we were to meet three years from now, what would have to have happened for you to feel happy with your progress?'" By asking clients to envision their lives three or five years down the road, you're encouraging them to think beyond their immediate financial concerns and consider their broader life goals—but not so far off that, their answers lack enough precision to begin planning.
It can also push them to think more creatively, which can help them break free of limiting beliefs so that together you both can begin exploring new possibilities for their lives and finances.
5. "How Do You Feel About the Assets You Own?"
When breaking the ice with new clients, it helps to understand their emotional connections to their assets. Bailey suggests going down the list of assets and liabilities on a client's balance sheet with questions that uncover how they feel about owning each asset. "For example, is owning their current home draining their time, dollars, and energy—or giving them a comfortable place to rest and recover from the day's stressors?" she said.
Another example might be a client who owns a vacation property—say, the cabin was grandfather-built—that holds sentimental value but is also a source of financial strain and stress. By understanding the emotional attachment and practical challenges associated with each asset, an advisor can help clients make more informed decisions about keeping, selling, or modifying what they own.
6. "What Keeps You Awake at Night?"
One of the most effective ways to break the ice with new clients is by asking them about their worries and concerns. Bailey recommends asking clients, "What keeps you awake at night, or do you wake up in the early morning hours worried about something specific?" She said, "I love to ask this early in the meeting and see how the person responds."
Asking about a client's worries and concerns demonstrates that the advisor is interested in understanding the client's unique challenges and fears. This question can help uncover more profound issues that aren't readily apparent by glancing at their finances. "If they are very quick to say that they aren’t worried about anything and sleeping fine, it’s sometimes a sign that they are embarrassed to admit a financial mistake or hold shame around a lack of financial literacy," Bailey said.
In these cases, the advisor's role is to create a safe space where clients feel comfortable sharing their concerns. Wilson said at points like these, "I’ll remind the prospect that our discussions are a judgment-free, confidential space." Bailey agreed. "Helping them feel comfortable enough to share their worries by the end of the meeting is a great moment of connection," she said.
7. Talk About Financial Mistakes
In her initial meetings, Bailey said she asks, "What financial mistakes have you made that you wish you could erase?" Discussing financial mistakes can be a sensitive topic, as many people feel embarrassed about past errors in judgment. However, asking this can do more than reveal a client's financial picture or abilities with money. "I find that sharing lessons learned is a comfortable method for a client to share with me the areas where we may run into a bit of financial trauma response."
In some cases, this could mean clients will struggle with the right choices in financial decisions, given their past. Bailey emphasized the importance of helping clients through these emotions. "I may have to help coach them through the emotions to make a prudent decision," she said.
8. The Most Powerful Questions Are Follow-Up Questions
Asking the right questions is key. Guenther said this requires a different approach than simply marketing to a prospect. "I really tend to focus on open-ended questions and actively listening. I've found that intently listening enhances my ability to understand, connect, communicate, and ask the appropriate follow-up questions," he said.
Nash pointed out that such questions are "the most powerful." "It shows you are listening and keen to understand more, and the more you understand the more you can help. Keep them open and let the client explain and do most of the talking. Aim for a 20/80 ratio," he said.
9. Be Yourself
There's no need to hide behind a facade. "Be your genuine self," Nash said. "Don’t use words you wouldn’t use in normal conversation among friends, and don’t overdo it. The client has to see you as a real human being in order to build trust."
10. "How Can I Help You Today?"
After loosening the client up and getting to know them, you'll need to understand what they hope to get from you, not just over the long term, but more immediately. At this point, Patel said he asks, "What would you like to achieve from today's meeting?"
What Is the Most Common Financial Advice for Couples?
Money can be a significant point of friction for new couples, whether they combine their finances or use separate accounts. Many advisors emphasize communication as the key to a healthy financial partnership and advise married clients to establish a clear understanding of each other's debts, assets, and financial goals. Another possibility is for those discussions to occur with you, where there's a safe space, and you can assure each person they are being listened to.
How Do You Handle Difficult Clients?
Like other professionals, financial advisors have to deal with their share of demanding clients. Experienced financial planners recommend vetting and meeting new clients first to ensure the responsibilities and expectations are clear all around. It's also important to be clear about fees since this can be a significant source of friction. When any conflicts do arise, it's time for you to assess your role and determine if there might be reasons to think you haven't fully met the client's expectations. If not and the client continues to be difficult, it may be time to end the relationship.
As a Financial Advisor, Should I Be Worried About My Future?
Not according to recent research on the matter. You don't have to worry (yet) that newer generations are more likely to use tech than humans for their finance needs: Cerulli's "U.S. Advisor Metrics 2023" reported that the desire to seek out a financial advisor doesn't vary much by age, despite changes in technology and the advent of robo-advising. About 70% to 75% of each age group in retirement plans, from Generation Z to the Boomers, say they would like a human advisor. In addition, nearly 40% of financial advisors say they're looking to retire in the next decade, and newer recruits aren't filling vacancies fast enough, with a rookie advisor failure rate of more than 72% not helping matters.
The Bottom Line
Whether courting a prospective new client or starting a relationship with a new one, financial advisors need to find ways to build rapport. This is no different than any other business or personal relationship. What is not the same is that financial advisors are asking their clients to trust them on critical financial issues that many don't discuss with almost anyone else.
Open-ended questions, being relaxed, speaking to them as you would a friend in a professional setting, and listening more than talking, along with our other tips, are key to starting off well with clients.
