Effective Client Interviewing and Communication
Effective communication between client and adviser is fundamental to the financial advising process. Good communication skills are assumed to be employed by advisers, but in practice these skills have seldom been defined explicitly and are often absent in advisers’ repertoire of client relationship techniques. This article presents an overview of five key skills for learning about clients and opening up sensitive areas safely and productively: discovery-focused interviewing, communicating clearly about the process of advising, speaking the client’s language, listening actively and passively, and managing yourself. These skills are premised on the belief that relationships with clients must delve not only into financial areas but also the emotional perspectives of clients and their families.
In the movie Pulp Fiction, a young woman named Mia-played by Uma Thurman-is getting to know Vincent, a hit man played by John Travolta. At one point Mia asks Vincent a very astute question: “When other people talk, do you listen, or do you wait to talk?” Vincent thinks for only a moment before admitting honestly, “I wait to talk.”
He’s not alone.
Many financial planners and advisers approach conversations with clients only as opportunities to get their point across, to persuade the client to buy a product or a service, or to engage in a social activity that supports the relationship but doesn’t really help the client. The goal is to get things done rather than understand the client. Yet, clients’ lives contain complex, nuanced emotional elements that are often difficult to share but important to know. Bringing these elements to the surface and basing advice on them make a great deal of difference in the relevance and applicability of the ultimate financial plan or strategy. Drawing relevant factual and emotional information from the client and knowing how to handle it adeptly requires good communication skills in every interaction.
The most effective and successful advisers in the industry are ones who can truly listen, build trust, interview effectively, make the client feel understood, and manage the delicate issues money can evoke. To be most effective, financial planners and advisers need to learn a fundamental set of communication skills. When these skills are finely tuned and consistently utilized, research indicates the client relationship is deepened and client satisfaction soars. Though excellent interviewing and empathic communication are an art, their component skills can be learned like any other.
Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.