Why good listening (and good music) establishes strong client relationships

By Danny Smith

Being an advisor means most of your day is spent listening to others. These conversations are more than business transactions, they are an opportunity to understand the concerns and dreams of the person in your office.

Where I often start with a new client is music from the 1960s. It’s easy for me to drum up conversation about some of my favorite memories of the time and encourage the client to reminisce with me. Those conversations often translate smoothly into more relevant topics and help establish a commonality.

This is the true key to success as an advisor: connecting with your client by finding commonalities that raise the comfort level of all involved. A strong connection between advisor and client will ultimately help the client reach their financial goals.

When you are looking to buy something or have a service done by a professional, you hope that the person is doing their best to understand your situation. Correspondingly, when your clients feel you understand their unique situation, they’re more likely to listen to your advice. For example, if my wife needs new tires for her car, we go to the car shop.

The mechanic takes time to inspect her vehicle as well as ask inquiring questions to determine what she needs. After a few questions, the mechanic determines exactly what we need and makes an easy sale. Similarly, you would also want a doctor to ask questions before prescribing a treatment plan. These processes all share the crucial step of gathering information from the person in need. This is the same process we go through with our financial planning clients.

My client base is largely made up of folks around my age, baby boomers. When clients come to me, odds are that they aren’t someone just establishing their family and career. While most clients’ common needs include retirement planning or insurance coverage, some clients might have questions or concerns about policies that were purchased years ago.

Stressful issues

Issues like these can be very stressful. Rather than trying to assume what a client needs, I let them do the talking and decipher their needs based on what they share.

There are many ways to show someone you understand them. To me, an important part of getting to know a client is repeating back what I heard matters most to them. In the same way I would want the car tire salesman to understand what features my wife needs in her tires, I want to ensure I understand what my clients need.

For example, if a client were to explain that they are worried about future health care, I would clarify if they were looking for long-term care insurance or want help in securing health insurance, like Medicare. This simple clarification completely changes my outlook on the issue.

If it turns out they are more worried about health insurance, while I spend time explaining a long-term care insurance policy, they will not trust me as we continue to work together. Having patience and asking the right questions makes the client feel at ease and like you are invested in their future.

Every person who walks through my door has a story to tell. There is no special treatment from client to client, I see everyone as someone who needs help and wants their struggles and dreams to be heard. While it may not seem like much for us, having someone who cares to listen to your story can be life changing. In all my years as an advisor, this is what has been most important to me and has made the biggest difference in my client care.

About the Author
Danny Smith, LUTCF, RHU is a 26-year MDRT member and financial advisor based in Sheffield Village, OH. With more than 40 years of experience, Smith leverages his wealth of knowledge to guide clients in the direction of their goals. Outside of his work, Smith is an avid basketball fan who still plays every week. Danny Smith offers securities through Mutual of Omaha Investor Services Inc.