7 Essential Sales Skills Every Financial Advisor Needs (2024)

Mastering 7 Essential Sales Skills for Financial Advisors' Success (2024)

The words of Rosa Parks, "Knowing what must be done does away with fear," hold for many advisors in the business world. Despite being experts in their field, a lack of knowledge in the art of selling can be detrimental to their success. This realization has been acknowledged by over 85% of advisors enrolled in our program.

• Rather than taking action, they obsess over every word, every pause, and every nuance, and are convinced that everything needs to be perfect before they can even begin to generate leads

• They become paralyzed by self-doubt and think that they don't have what it takes to communicate and convince high-net-worth individuals they are indeed the real deal.

• Meanwhile, many advisors are lost in a sea of complex theories that cause them to overlook opportunities right under their noses.

But here's the thing:

It is often by simply knowing what needs to be done that advisors can shed their fears and achieve the success they desire.

Thankfully, there is a well-researched solution to these obstacles that can help advisors achieve sales success: influence.

Don't let fear hold you back from achieving the success you deserve. Invest in yourself and your business by enrolling in our sales training program today. Click here to get started!

In today's post, we will explore seven essential sales skills that can transform influence into your most powerful ally. With these skills at your disposal, few sales challenges will be insurmountable, even fewer customers too resistant, and no deal too difficult to close. 

Let's dive in!

Active Listening

When it comes to selling as an advisor, listening is just as important as talking.

According to a survey of more than 400 buyer–seller dyads, when sellers listen effectively to buyers, it has a strong positive impact on various outcomes such as service quality, trust, satisfaction, word-of-mouth recommendations, purchase intentions, and sales performance.

But what does “active listening” mean?

Active listening is the art of hearing what the other person is saying, understanding it, and responding appropriately. It is not enough to hear the words; you need to pick up on the subtle cues and nuances in their tone and body language.

To illustrate, consider the following scenario: 

• Advisor A actively listens to their clients, paying close attention to their needs and concerns. They ask open-ended questions to gain a better understanding of their client's unique situations, and they take notes to ensure they don't forget any important details. Advisor A also acknowledges their clients' emotions, expressing empathy and understanding when appropriate.

• On the other hand, Advisor B is more focused on talking than listening. They interrupt their clients frequently and tend to offer solutions before fully understanding the problem. Advisor B also shows little interest in their clients' emotions, often dismissing or ignoring them altogether.

Now, put yourself in the shoes of a potential client looking for an advisor. Which advisor would you prefer to work with? Advisor A or B?? There you have it:

Here are a few tips advisors can use to improve their active listening skills:

• Avoid interrupting clients while they are speaking.

• Ask open-ended questions to encourage clients to share more.

• Paraphrase or repeat back what the client has said to ensure understanding.

• Use nonverbal cues to show you are engaged, such as nodding or making eye contact.

• Avoid multitasking or distractions during client meetings.

Building Rapport 

The path to many opportunities and hitting sales targets repeatedly is often paved with collaborative efforts and positive relationships, and building rapport is a crucial centerpiece.

Note: Establishing rapport is akin to building trust, yet the former centers more on forging a bond, whereas the latter is founded on cultivating a reputation for dependability, steadfastness, and delivering on one's commitments. In essence, building rapport is about establishing a (genuine) personal relationship, while building trust is about demonstrating professional competence.

Advising is more than a Yes-No Business: To build rapport with your clients, it's important not to overlook the fundamentals:

• Listen intently and with focus, giving your full attention to the other person. 

• Ensure that you are culturally sensitive and aware, and always wear a friendly smile to put others at ease. 

• Make an effort to remember people's names, as this demonstrates attentiveness and respect. 

• Additionally, engaging in small talk can help you discover common ground, facilitating the formation of a bond. However, humor should be used judiciously, with care taken not to offend or alienate the other party.

That's not all:

• Develop shared experiences to enrich client interactions. These experiences need not be extravagant, as even attending a community event together can be impactful. 

• Don't forget about empathy. It is a critical component of understanding others. By placing yourself in their shoes and acknowledging their emotions, you can build a deeper understanding and cultivate stronger relationships.

• Givers get! By giving to your clients, you can build a deep and lasting relationship with them. But what does giving mean in this context? It means going above and beyond what's expected of you: providing valuable insights, sharing resources, and making connections that can help your clients in business, and their personal lives e.g. referring them to a mortgage broker in your network.

One more thing: Studies indicate that we are naturally drawn to individuals who exhibit similar characteristics to ourselves. Utilizing the techniques of "mirroring and matching" can be highly effective in building a relationship by aligning with the other person. This involves imitating their body language, tone, and linguistic patterns, thereby creating a bond that promotes trust and affinity.

At the end of the day:

“People don’t buy for logical reasons. They buy for emotional reasons.” – Zig Ziglar

So don't be afraid to connect with them on an emotional level. Share stories and experiences that demonstrate your expertise and show them how you can help them achieve their financial goals.

Effective Communication

As a financial advisor, it is not enough to just have the right credentials and knowledge. You must also be able to communicate your expertise and value proposition in a way that resonates with your clients in a clear, relatable, and impactful manner.

The key component of effective communication is being able to simplify complex financial concepts and terminology. As a financial advisor, you are likely well-versed in technical jargon and industry-specific language, but your clients may not be. By using clear and concise language, and avoiding unnecessary jargon, you can help your clients better understand the strategies and options available to them.

In addition to what we say, our nonverbal cues like body language and tone of voice can impact how our message is received. As James Clear, the author of Atomic Habits, explains,” …Many ideas get dismissed because they are delivered in a hostile or dismissive tone…”

The point is: effective communication involves more than just the words we use. Advisors should strive to use a friendly and respectful tone, maintain good eye contact, and use positive body language to build rapport and establish trust with their clients.

Tip:  Tailor your communication style to the preferences of your clients. Not all clients respond to the same type of communication, so it's important to understand their preferences and adapt accordingly.

For example, some clients may prefer regular phone calls or in-person meetings, while others may prefer email or text messages. Some clients may prefer to receive detailed information with a lot of data and analysis, while others may prefer a high-level overview with less detail.

By understanding your clients' preferences and adapting your communication style accordingly, you can build stronger relationships and improve client satisfaction. This can also help to avoid misunderstandings or miscommunications, which can lead to confusion or frustration.

Finally, it's important to remember that effective communication is a two-way street. Encourage your clients to ask questions and provide feedback, and be open to their input and criticism. By fostering a collaborative and transparent relationship, you can build a strong foundation of trust and loyalty with your clients.

Handling Objections

Objections are as certain in sales as the sun rising in the morning. Every financial advisor will come across them sooner or later. But objections should not be seen as a roadblock, but rather as an opportunity to build trust and demonstrate your expertise. When handling objections, it's important to listen attentively to your clients, understand their concerns, and show them that you're committed to finding a solution that works for them. By doing so, you'll not only overcome the objection but also build a stronger relationship with your client

Here are a few examples of common objections and how to handle them:

Objections arising from a negative experience with another advisor:

When dealing with a prospect who has had a negative experience with another advisor, it's important to empathize with their feelings and concerns. Let them know that you understand how frustrating it can be to feel let down by someone you trusted. However, it's also crucial to make it clear that their experience doesn't negate the need for financial protection and planning for the future.

You can use an analogy to illustrate this point: 

“If you go to a restaurant and have a bad meal, it doesn't mean that you'll never eat out again. You'll still need to eat, and you'll still want to enjoy good food.” In the same way, even though they've had a negative experience with a previous advisor, they still need to plan for their financial future and protect themselves against potential risks.

Objections about “I am good - I don’t need your services:”

It's important to acknowledge the prospect's sense of self-sufficiency and independence. Start by assuring them that you're not here to undo the good work they've done so far. In fact, applaud their efforts and commitment to financial stability.

Next, let them know that your goal is simply to provide them with information and education that will help them make even better-informed decisions. You're not looking to push a particular product or service on them, but rather to empower them with the knowledge that will serve them well in the long run.

Finally, if there are any gaps in their protection, plan, or policy that could leave them vulnerable to financial risks, make it clear that those needs would be addressed in a way that complements the great work they've already done. This is a no-strings-attached arrangement, and your only goal is to ensure that they have the best possible financial future.

By taking this approach, you can build trust with the prospect and demonstrate your commitment to their financial well-being, even if they initially resist the idea of working with you. In most cases, they'll come around once they see the value you bring to the table.

Closing Techniques

Closing techniques are the strategies you use to encourage your clients to take action and sign on the dotted line. 

To have a successful sales process with minimal objections, it's crucial to start with a thorough fact-finding conversation. As insurance and financial services professionals, we've been taught to focus on making a certain number of appointments and to view this metric as the key to success. 

But is this the best way to approach things?

From our experience, we've found that the close of a sale is the culmination of the entire sales cycle. By focusing on filling your pipelines with high-quality leads, taking the time to truly understand their needs, and identifying potential sales opportunities through in-depth interviews and conversations, you can establish yourself as a trusted advisor to your clients. This not only increases the likelihood of creating a solution that meets their specific needs but also increases the likelihood that they will take action when you present it to them.

 

Unfortunately, at this critical juncture, many advisors miss the mark by presenting several solutions in the hopes that the client will choose one. However, the Taylor Method offers a more effective approach by focusing on identifying one or two viable solutions that are personalized to the client's unique needs and goals. This tailored approach increases the likelihood of the client taking action on your recommendations, making it a more efficient and effective way to close sales.

Imagine if you went to the doctor and after running some tests, he came back to you and said here are 7 possible options we have to solve your problem. Pick one. This is what we do to our clients when we present them too many options! 

Time Management

Advisors who can effectively manage their time can maximize their productivity, achieve their goals, and provide the best possible service to their clients. 

Here are some essential time management skills every financial advisor needs:

• Prioritization: Effective time management requires the ability to prioritize tasks based on their importance and urgency. Advisors should focus on high-priority tasks that are critical to their business success, such as client meetings, prospecting, and investment research.

There's more to it than just that:

When meeting with potential clients, it's important to identify decision-makers early on in the conversation. For example, if you're meeting with a married couple, ask them how they typically make buying decisions. Do they make decisions together, or does one partner have more authority in making decisions?

By understanding how they make decisions, you can avoid wasting time and effort by having to repeat your pitch to both partners separately. If they make decisions jointly, it's important to have both partners present during the meeting or schedule a follow-up appointment with both of them. This allows you to effectively make use of your time.

• Automation: Automating routine tasks such as email follow-ups, appointment scheduling, and portfolio rebalancing can help advisors save time and improve efficiency.

• Time blocking: Setting aside specific blocks of time for certain activities can help advisors stay on track and avoid distractions. For example, scheduling client meetings in the morning and prospecting in the afternoon can help advisors make the most of their time.

• Continuous improvement: Advisors should regularly review their time management strategies and make adjustments as necessary to improve their efficiency and productivity.
  

Goal Setting

Goal setting is like a treasure hunt. You start with a map and a destination in mind - that's your goal. And just like on a treasure hunt, you need to have a clear understanding of where you're headed if you want to succeed. 

And just like on a treasure hunt, you need to be flexible and adaptable as you pursue your goals. You might encounter unexpected twists and turns, but that's all part of the adventure. The key is to stay focused on your destination while being open to new possibilities and opportunities that come your way.

Here are some tips that every financial advisor needs to set and achieve their goals:

• Clarity: Advisors should identify what they want to achieve, why it's important, and how they plan to achieve it. Do not leave room for ambiguity.

• Measurement: Goals should be measurable so advisors can track their progress and make adjustments as needed. Advisors should identify key performance indicators (KPIs) to monitor and set targets for each KPI.

• Realism: Goals should be realistic and achievable based on the advisor's resources, capabilities, and market conditions. Unrealistic goals can lead to frustration and disappointment.

• Accountability: Advisors should hold themselves accountable for achieving their goals and regularly review their progress. Seeking feedback from mentors, peers, and clients can help advisors stay on track and identify areas for improvement.

For most advisors, one goal they have in common is to “fill my pipelines with consistent warm leads.” This is an essential part of building a successful practice, as a steady flow of leads helps ensure a steady flow of new clients and revenue. 

To achieve this goal, one key strategy is to ask for referrals at the onset of the sales process with a client. It is simple:

"Hello, client. I appreciate the opportunity to work with you, but I believe in being transparent, so I want to share how I get paid for my services. I receive commissions from the companies I represent, but what's more important to me is earning referrals. Joe referred you to me, and if you find value in the information I provide and the work I do, I kindly ask that you refer me to any friends, family, or business associates who you think could also benefit from my services. Thank you."

 

By prioritizing this goal and taking consistent action to achieve it, advisors can build a thriving practice that delivers real value to their clients.

Conclusion

As a financial professional, your potential for income growth is limitless. There are no predetermined caps on how much you can earn, and the only limits are those that you set for yourself. That's why it's critical to keep learning and developing your sales skills, just like a pilot hones their abilities through regular simulator training. With each new skill or technique you acquire, you'll be better equipped to serve your clients and build a successful practice.

If you're finding it difficult to generate a steady stream of leads and struggling, even more, to convert them into clients, take heart, because you're not alone. Many financial advisors have been in your shoes and felt the same sense of despair. However, those who have successfully turned things around didn't do it alone. They sought out trusted and proven help through sales training and mentorship via the The Taylor Method, learning valuable skills and techniques to improve their strategy. By leveraging the experience and lessons of 1000s of others before them, they were able to pivot and achieve success. Don't be afraid to follow in their footsteps and level up your sales training skills. Sign up today and start on the path to thriving as a financial advisor.