Clients fall into the psychological traps of investing all the time. They stick to old ideas and protect earlier choices, even those that aren’t financially beneficial. They follow the herd mentality, investing in the latest, hottest product without concern for how it may fit into their broader financial plan. Or they may hold as truth the advice of a friend or family member whose financial goals don’t match their own.
These restrictive mind-sets can be exacerbated by immediate access to online advice, whether sound or not. Prospective clients can search infinite opinions on a product or topic, weigh pros and cons, and—after a dash of intuition—make a decision, all before even meeting with you.
Even during a meeting, these mind traps may lead clients to say “no” before they’ve fully considered the option you’re offering. That’s because individuals are programmed for financial survival before financial growth, instinctively trying to stock and preserve.
When “No” Might Mean “Maybe”
But a client’s “no” doesn’t necessarily mean the end of the conversation; decisions about financial planning aren’t typically as black and white as choosing an ice cream flavor. When talking with annuity clients, remember this: Yes, there is a near-infinite number of resources available to them, and yes, they’ve probably done enough research to make them conversant on the topic. But this is not their area of expertise, it’s yours. A “no” may be less of a final answer and more of a “convince-me-why-I-should” hesitancy. In fact, all clients whose response falls between “not interested” and “yes” are just one of the many shades of “maybe”.
Clients may have done hours of research, but their “maybe” probably stems from lack of discernment about their own investment style. They likely haven’t considered these two simple—yet vital—financial planning questions:
- What am I willing to lose?
- Is the potential gain worth the risk?
By asking your clients to thoughtfully answer these questions, you’ll help them not only ease concern and shed old decision-making patterns, but you’ll also gain better insight into how annuities will help achieve their financial goals.
From “Maybe” to “Yes”
As a professional, to respect your client’s natural hesitation is one of the most caring things you can do—understanding when a “no” is a hard, steadfast answer and when it’s a guarded way to ask for more information. Guide them through the steps of the annuity transaction by educating them along the way about the various scenarios and benefits, and reaffirming your offer is simply that—a choice, one that is ultimately theirs to make.
At Highland Annuity, it’s our mission to help you work with your clients to achieve their financial objectives. Let our annuity experts show you how to alleviate client concern and ultimately close more business. Contact us today at firstname.lastname@example.org to get started.