Overcoming the indecision of prospects

As advisors work to expand their practices, some must deal with indecisive prospects: those who hesitate to implement their recommendations, even after meeting several times. Two industry experts, Robert Arzt and Brian Haney, recently shared some tips advisors can use to help convert procrastinating prospects into long-term clients.

Generally speaking, there are three main reasons why prospects hesitate to implement their advisor's recommendations, explained Arzt, founder and president of Polaris One and InsuranceCoachu.com. These include:

• Lack of trust
• Lack of urgency
• Lack of funds

Lack of trust

The most foundational reason is lack of trust, Arzt said. “In today’s world of instant access to information, prospects are inundated with conflicting advice and opinions about achieving financial security for themselves and their families. This overwhelming and often contradictory information can breed confusion and skepticism, leading to distrust of financial recommendations,” he said.

Additionally, the approach an advisor takes plays a critical role in shaping trust. “Prospects can sense whether an advisor is primarily product/solution-focused or genuinely customer/relationship-focused.” Arzt said. The tone, attentiveness, and process of the advisor, from the initial meeting to fact-finding and ultimately presenting solutions, significantly impact how much trust a prospect attributes to them.

Building trusted advisor relationships

Building and maintaining trusted advisor relationships require intentionality and consistency, said Arzt, and he shared a few actionable steps that financial advisors can take to strengthen trust. These are:

1. Prepare thoroughly: Before meeting a prospect, research what makes their situation unique. Develop meaningful questions that resonate with their needs and prepare thoughtful follow-ups to show that you’re listening.
2. Focus on the prospect: During the data-gathering phase, give your prospect your full, undivided attention. Stay fully present and clear your mind of distractions.
3. Adapt to the prospect’s style: “Help prospects feel at ease by mirroring their communication style and energy level. This creates alignment and builds rapport,” he said.
4. Encourage them to open up: Ask open-ended questions aimed at drawing out what matters the most to them. Show genuine curiosity about their values, goals, and concerns, he added.
5. Listen actively: Pay close attention not just to what they say but also to how they say it. “Their tone and emotions often reveal their deeper priorities and concerns,” he said.
6. Maintain connection: When meeting with prospects, maintain steady eye contact with them to convey sincerity and attentiveness, and take notes to show them that you value their input.

“By focusing on building trust through preparation, presence, and personal connection, advisors can help prospects feel understood, valued, and confident in moving forward with recommendations.” Arzt said.

The value of behavioral economics

Haney, who is CEO of The Haney Company, shared that what he would say to encourage financial advisors to grow in the areas of behavioral economics is: “Facilitate decision making. This is your job.”

People crave consistency, Haney added. “We never want to be seen as hypocritical or inconsistent; so, our role should be to help our clients verbally recognize what they really want to do, and then become the facilitator in making that a reality. Once they have said “this is what I want,” then it’s next to impossible for them to behave in a manner that undermines that statement without experiencing significant psychological turmoil.”

Haney then shared the following questions to help advisors concentrate on breaking down barriers to their prospects’ indecision:

• What is the financial decision your clients want to make, but simply don’t know how to make yet?
• What financial stressors do they have?
• What keeps them up at night?
• Where do they feel stuck?
• Do they feel confident that the people they care deeply for will be taken care of if they don’t make some changes?

“Recognizing where and why someone is stuck is the key to helping move them forward,” Haney said. “And when all else fails, don’t forget to properly frame the crucial question: What would happen if they do not take action? Is the status quo OK? Sometimes, we need to be reminded that we are already not in good shape, and that not making a decision is making a decision – to stay stuck and avoid doing things we know we should do and need to address.”

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