As financial advisors, you’re experts at managing money and creating solid financial plans. But what happens when a client pushes back or has a concern? These difficult conversations can be tough, but they’re often the most important moments for building stronger client relationships and showing your true value.
Inspired by insights from “The Right Side of the Table,” we can turn these challenging talks into chances to build deeper trust and offer more effective guidance.
It Starts With How Clients See You
Before you even say a word, think about this: How do your clients see you? Do they view you as someone just trying to sell them something? As an expert giving advice? Or as a truly trusted advisor who genuinely has their best interests at heart?
Clients are much more willing to talk about their concerns with someone they see as a partner, not just someone focused on a transaction. This is where adopting a discernment style comes in. It means putting your client’s real motivations, worries, values, vision, and life goals first. When you’re acting as a genuine partner, objections stop being a simple “no” to your idea and become an opportunity to understand a deeper “why.”
The Trust Formula in Action: Turning Objections into Understanding
Tough conversations are a direct test of the Trust Formula: (Credibility + Reliability + Intimacy) / Self-Orientation. When an objection pops up, it’s a chance to show each part:
- Credibility & Reliability: Your expertise should be clear, and you should always follow through on what you say. If a client questions a recommendation, calmly explain your reasoning without talking down to them.
- Intimacy: This is where the real connection happens during difficult moments. Have you made it safe for them to share their true concerns? Often, an objection about fees or an investment might actually hide deeper worries—like fear of the unknown, bad past experiences, or even unspoken family issues. Genuine empathy and active listening are your most powerful tools here.
- Low Self-Orientation: This is perhaps the most crucial part of handling objections. If you’re too focused on yourself (like making the sale or getting a commitment), you’ll quickly shut down any productive discussion. A low self-orientation—meaning you prioritize your client’s best interest and try to understand their point of view—changes the entire conversation. It signals: “I’m here to understand you, not just to sell you something.”
Tips for Better Engagement and Communication
Handling objections isn’t about having a ready-made answer; it’s about building real engagement and communicating effectively. Here’s how to put these ideas into practice:
- Listen to Understand, Not to Reply: When an objection comes up, don’t rush to justify or defend yourself. Instead, use a Discernment mindset. Ask clarifying questions like, “Can you tell me more about why you feel that way?” or “What specific concerns does this bring up for you?” Listen for the underlying emotion or unspoken need.
- Acknowledge Their Feelings: Show them you understand their concern. Say something like, “I can see why that would be a worry, especially given [x].” Acknowledging their perspective builds trust and makes them less defensive, opening them up to hear your point of view.
- Connect Back to Their Goals: Objections often come from a disconnect between the plan and what the client truly wants. Revisit their values and vision for the future. “Remember when we talked about wanting to make sure your grandchildren’s education was secure? How does this plan fit with that goal?” This helps shift the focus from the “what” to the “why.”
- Work Together on Solutions: Instead of just telling them what to do, invite them to help solve the problem. “Given your concern about X, how could we adjust this plan to still reach your long-term goals?” This makes them feel involved and gives them ownership.
- Communicate Proactively: The best way to handle objections is to prevent them in the first place. Regularly checking in, giving clear explanations, and anticipating potential concerns through strong, two-way communication builds a foundation of trust that makes future difficult conversations much smoother.
Beyond the Objection: Lasting Trust and Impact
Navigating difficult conversations isn’t just about getting past a hurdle; it’s about making your client relationships deeper. By using a discernment-based approach, focusing on low self-orientation, and applying the Trust Formula, you can turn moments of friction into strong foundations of lasting trust.
This commitment to understanding and serving your clients at their deepest level is how you truly earn your spot at the “Right Side of the Table,” becoming an indispensable and most trusted advisor who makes a real difference in their lives.
