2024 Regional Summits | Avoiding Free Conversations

Brian Roberts discusses methods on how to avoid free consulting in client meetings. The Custom Solutions Group, for plans that are record kept by TIAA, has created cutting-edge programs in the specialized field of retirement plan management that allow advisors to provide plan sponsors with enhancements. However, advisors frequently struggle with the tendency to offer too much information too quickly, which is a behavior that is sometimes referred to as "free consulting."

During first meetings, advisors sometimes find themselves in situations where they are eager to show off their solutions, so they provide a lot of information. Although this strategy may impress potential clients, it frequently backfires because prospects may take advantage of the information after gaining insightful knowledge without hiring the advisor's services, leaving the advisor with nothing.

To counter this, advisors should focus on structuring conversations to be productive without giving away all the solutions upfront. This approach, sometimes referred to as "avoiding free consulting," involves a few key strategies:

• Effective Introductions: Introductions should be brief and concentrate on the advisor's expectations for the customer. Focus on what your clients can expect from you, such as, improving plan effectiveness, avoiding unnecessary risks, and reducing plan fees rather than going into the firm's background.
• Uncovering Goals and Priorities: Advisors should make it a priority to understand the goals and priorities of the prospect during the first interactions. You should be asking questions to elicit information from your prospect which will then help you to align what they say as important to what you understand about their plan. A helpful tip is to implement the 70/30 rule, with your prospect speaking 70% of the time and you speaking, at most, 30% of the time. Open-ended questions like "What are the specific things you're looking to achieve or avoid with your plan?" can help achieve this. With this strategy, the needs of the prospect become the advisor's primary concern.
• Identifying Opportunities Without Giving Answers: Once goals and priorities are understood, advisors should identify opportunities and align them with the prospect’s intent. Instead of providing detailed solutions, advisors might use phrases like, “Would it surprise you if I told you that your plan may not be as effective as it could be? If I could show you how to improve it, would that be enough to consider hiring me?”
• Building a Next Step: There should always be a planned course of action after a successful meeting. An advisor might, for example, recommend creating a summary report that evaluates the prospect's plan in key areas, highlighting top priorities, and including a list of services and fees. This involves giving the advisor permission to view particular plan data which will indirectly assess the prospect's level of commitment.

By applying these strategies, advisors can avoid the pitfalls of free consulting and ensure their expertise is valued. For example, instead of presenting a detailed pitchbook during an introduction, advisors should briefly explain their value proposition and then shift to uncovering the prospect’s specific needs.

Advisors can promote meaningful and mutually beneficial interactions by skillfully presenting themselves, establishing goals, recognizing opportunities without giving away all the specifics, and guaranteeing a clear next step. The strategy for avoiding free consultation entails disciplined exchange of knowledge, strategic communication, and a laser-like concentration on matching the needs and intent of the prospect. Advisors can become more successful in their client engagements and improve their efficacy by learning these tactics.

Check out the presentation slides here!

________________________________________