The key to a solid client-advisor relationship is knowing the right types of questions to ask. Some clients, when dealing with advisors, can feel intimidated by the use of ‘financial jargon’, and ‘closed questions’. Clients often feel judged in these situations and are unsure how to continue a conversation. The best course of action for advisors in these scenarios is to pivot toward more open-ended questions, that elicit a more profound and thought-based answer. Instead of asking questions that can be answered by a simple yes or no, it is important to frame the question in a way that will cause the client to respond more thoughtfully, providing valuable insight for both the client and advisor.
Another tactic that advisors can use with their clients is asking scale questions. Presenting the client with a topic, then asking a question such as “on a scale from 1-10, how comfortable are you with your retirement plan?” can help advisors gauge just how comfortable clients are with their current situation. With this approach, advisors can then ask clients what it would take for their answers to move upwards on the scale, providing a clear pathway for proper financial planning.
For more information on asking clients the right questions, follow the link below:
https://www.theglobeandmail.com/investing/globe-advisor/advisor-practice/article-why-people-are-afraid-of-financial-jargon-and-what-advisors-can-do/
