More to Manage: Client Assets & Needs - Understanding Emotion is Key
Posted on Tue, Feb 07, 2012 @ 05:20 PM
Clients and advisers all know it has been a tough few years in the market. Advisers have been busy figuring out their best strategy to handle the volatile markets. Clients have been busy wondering if their adviser is making all the best moves and fully understands their needs and objectives.
Financial advisers end up feeling the squeeze, with more dema
nding markets and clients. Advisers are spending more energy helping their clients understand the firm’s strategies for handling market swings and more time listening to clients concerns and working to address the vulnerability the clients feel.
One of the workshops held at the TD Ameritrade Orland conference last week discussed emotional intelligence and the growing need for advisors to understand emotional intelligence. Investment News attended and published an article based the information learned from this workshop, which explains emotional intelligence “… is central to helping clients avoid mistakes, and vital to attracting and retaining clients.”
Understanding your client’s emotional drivers helps advisers tailor their approach to best deal with the clients underlying needs. The emotional drivers are described as “… the need for stability, attention, control, information and approval.” I sure you all can easy think of a few clients whose emotional needs clearly fit into one of those categories. The better you understand the client’s emotional driver, the more efficiently you will be able to communicate with the client and address the client’s fundamental needs.
“Effective communication with a client often can involve something as simple as letting them set the time for a face-to-face meeting. Individuals with a nigh need for control want to be given alternatives from which they can choose. Others look for their adviser to make the investment decisions, and merely need coaching and confirmation that strategies jibe with their broader objected.”
Read more about emotional intelligence from the Investment News article:
Getting a firm handle on emotional intelligence
By Andrew Osterland
February 5, 2012
http://www.investmentnews.com/article/20120205/REG/302059978