by Tommy Watson
I'm sure we've all been there. Whether it's working with a new potential client, planning meeting with an existing one, or even just talking with friends or family: that moment when someone questions your advice.
It could be the client who got a hot tip for the next Apple down at the local pub and believes this single stock will be a better long term home for their families wealth than your evidence based, low cost, globally diversified portfolio. Or the client who read in the Daily Mail that pensions are rubbish so doesn't agree with your advice to maximise any available allowances.
I'm sure clients aren’t intentionally questioning us (although we all have those clients who like to challenge us) and of course we know the importance of educating our clients and dealing with objections, but go on, ask yourself honestly, how does it make you feel?
For me, whilst I enjoy taking clients through this educational journey, giving them the confidence to make better decisions around money and block out some of the noise, I'm ashamed to say there is always a part of me that is a little, let's say, irritated. Am I the only one why feels that way?
Late last year I got a brilliant reminder of how to deal with this from the most unexpected of places: buying a camera ahead of my honeymoon.
I know nothing about cameras, so I did a little online research (which consisted of Googling the best cameras for my budget) and then asked a friend who is a keen photographer what she would recommend. I wonder how different this is to the journey a potential client may take when searching for a financial planner?
Armed with the results of my Google search and a recommendation from a friend I was ready to buy a camera.
Rather than buying online I popped into a local camera shop to get a better idea of my options (there will always be people who place more value on face to face advice; maybe more on this next time). I was greeted by a sales assistant, explained what I was looking for and gave a rough budget. After a couple of questions I was pointed to a camera that would meet my needs as was in budget. Brilliant!
Except it wasn't the camera my friend had recommended. This is when I became ‘that client' and announced that I'd been told another camera would be better. A little bit of information can be a dangerous thing.
Here's where the assistant really excelled. Rather than just rubbish the other camera, she took me over to it and explained all the features and benefits, how it would suit my needs, the options to upgrade the kit in the future and importantly the cost. Wow I thought, maybe my friend was right after all.
She then went back to her original recommendation and began to compare the features and benefits with my pick. At each step she clearly explained why she was recommending camera A over camera B and why in her expert option (and after all I had gone to her for an expert opinion) camera A was not only more suitable for my immediate needs, but gave me much more flexibility longer term and although there was a slight increase in price, it would be worthwhile.
The sales assistant did all this in a manner that wasn't belittling or judgmental, but served to help educate me around my decision. She then left it up to me to make a decision in a much more informed position than I was 20 minutes earlier. I'm sure it will come as no surprise that after this I bought camera A.
We all know how we should deal with these client objections so this is nothing new. For me however, as well as being a reminder of how to brilliantly deal with the challenge in the first place, it helped me put myself in a client's shoes and understand where that questioning can come from. I wasn't questioning the assistant’s advice because I honestly felt I knew better. It was purely because until that point I felt the little bit of information I had was sufficient to make this decision. I'm sure this is a similar starting point to many clients. Once I had been given more information, in a simple to understand way (with no camera jargon), I had much more confidence in my ability to make this decision.
Next time I'm faced with a client questioning my advice I'll think back to my camera experience. Hopefully it can help you too!
Tommy is a Client Manager at Paradigm Norton's London office, becoming part of the PN team in 2017 following the merger with The Red House.
A Chartered Financial Planner and Fellow of the PFS, Tommy is responsible for delivering a highly personalised, holistic, financial planning service to a select group of clients. Tommy co-leads Paradigm Norton's London office, is a Trustee of the Paradigm Norton Employee Ownership Trust and a member of the firms Culture and Values committee. A Business Finance graduate from Durham University, Tommy has over 10 years' experience working in financial services, both in the UK and Singapore before joining The Red House in 2014.
Outside of work, Tommy is a fan of most sports and enjoys following his beloved Everton around the UK. Always keen for a physical challenge, he has climbed Mount Kilimanjaro, cycled the length of the UK and completed a number of marathons, triathlons and open water swims.
