Prospecting is what gets a financial advisor their client. In fact, nine out of ten times, the main problem that any financial advisor will have is not being able to prospect the right way. Of course, it isn’t easy to ensure that you have the right prospecting process. It takes a lot of trial and error.
But still, there are some mistakes that we have highlighted in this blog that we are sure you should avoid making as much as possible. Avoiding these mistakes will ensure a smoother and more efficient prospecting process. We will discuss the big issues such as improper utilisation of social media and even not using the right kind of financial planning software for advisors.
5 Big Prospecting Mistakes You Should Avoid
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Having The Quantity Over Quality Approach
It might seem like a blessing to have an abundance of prospects, but usually, that turns out to be a problem in disguise. The simple fact is that even if you have a lot of prospects lined up that you are about to follow up on, we can assure you that not all of them will turn out to be the right pick. They seem good, but their case just isn’t assuring enough to make them a qualified prospect. Which is what most financial advisory firms look for.
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Relying Too Much On Social Media Strategies
There is no doubt that social media has irrevocably changed the way we do things. There are man firms that get their main source of prospects from portals like LinkedIn. But over-reliance on one source is always a mistake. If that source happens to dry up, then where will you turn. From phone marketing to referrals and even email marketing. There are many channels that every good financial advisory firm should have up and running at all times.
So, even if one source encounters a problem, you can turn to another for prospects.
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Focusing Too Much On Your Current Clients
There are some firms that make the mistake of focusing so much on their current clients that they forego the task of prospecting for new clients completely. While good customer service is not a bad thing, don’t overdo it. Certainly not at the expense of prospecting for newer clients.
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Trying to Sell During Prospecting
Just like there is a time and a place for presenting the investment suitability questionnaire, there is a time and place for prospecting and for selling. And both times and places are completely different. During the prospecting process, all you need to be doing is just focusing on asking questions and
The fact is, the person might not need your services. Or they might, but your exact service and way of doing things might not be the right way to go for them. So, selling what you are and what you do during that time can cause issues to arise.
Instead of selling your service, sell yourself. Sell your trustworthiness. Build a rapport. Understand their problems and suggest solutions. If it moves past that stage, then you can begin selling.
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Not Following Up.
Following up with a client can mean the difference between a good experience and a bad experience. It can mean the difference between a prospect conversion and no conversion. If you are prospecting, never forget that you have to follow up. Be relentless at it.
You will almost never make a sale on the very first content. This is due to the fact that the prospect will be weighing their options. Their mind will not be made up. But once their round of inquiry is done, you can pick up the phone and ring them. And not just once, but multiple times. Statistics show that 80% of all qualified prospects become clients between the fifth and twelfth contact.
This might sound aggressive, but that’s how selling works.
In Conclusion
Avoiding these mistakes will surely have a significant impact on your prospecting strategy. And once you are done, you can consider our software for financial advisors. Our questionnaires regarding risk tolerance and financial risk assessment are second to none. And they will be able to give you in-depth insight into the financial mindset of your new client.
Are you interested in trying it out? Check out our website for more information right now.