Fiba seminar how to read wealth clients 15 oct 2013

15 October 2013

How to read Wealth Clients FIBA Wealth Management Breakfast Seminars

Skills to improve your client relationships www.theclientacademy.com

SDI – Strength Deployment Inventory

The SDI helps people identify their personal strengths in relating to others under two conditions: 1) when everything is going well, and 2) when they are faced with conflict.

Strength...

means to move strategically or to take a position for effective action. The SDI suggests ways that one’s personal strengths may be used to improve relationships with others.

Deployment...

Inventory... The SDI is not a test where judgments and “right” or “wrong” answers are graded. It is a self-discovery tool.

It is an inventory for taking stock of motivational values (the basis for how you feel and act in different situations).

4 types of people according to their SDI motivation

Blue Red-Blue Red

Red-Green

Green

Blue-Green

Hub (Black)

Blue: Help others Red: Get results

Green: Analise independently

Black: Be flexible

MOTIVATIONAL VALUE SYSTEM

Blue Wealth Clients

They see their Private Banker as someone close to the family who understands their values and helps them preserve and project them into the future.

ALTRUISTIC–NURTURING

§  Talks about feelings and family

§  Will be sincere, trusting and loyal

§  Talks about benefits to other people

§  Will be interested in your

opinion and whether you are happy

§  Will emphasize the relationship

§  Meeting may be longer than planned if they “connect” with you


How they tend to behave:


Selling to BLUE

Listening and personalization are key. They will be less price sensitive if you’re giving them a very good service otherwise. Allow time in the meeting to meet members of the family or visit the business.

§  Don’t go in with a pre-thought solution, ask them for their opinion first

§  Tell them about the benefits to the family

§  Be genuine: they need to trust you as a person

before doing business §  Refer to relationship: “we

want to have a long-term relationship”

§  Don’t take advantage of their trusting nature. If you lose their trust, they’re gone forever.

How to influence them:

ALTRUISTIC-NURTURING


Red Wealth Clients

They see their Private Banker as someone who can help them obtain a high return on their investments. They are clients of several banks and foster competition between them.

ASSERTIVE–DIRECTING

§  Likely to be direct and clear; can be challenging

§  Gets to the point quickly, focuses on results, will want action

§  They will be uninterested in the detail

§  Meeting will be short. They may be doing other things at the same time

§  Likely to negotiate §  The relationship is more

transactional: you’re only a good as the last lucrative deal you proposed to them.



Selling to RED

Being competitive is key. If you’re not on this occasion, don’t waste their time. Show how what you’re offering is different.

§  Talk about solutions rather than problems

§  Be brief and clear §  Present short documents

with clear recommendations

§  Emphasize return on investment, time & money savings

§  Give them credit for ideas


ASSERTIVE–DIRECTING


Green Wealth Clients

They see their Private Banker as a provider of information and expertise they couldn’t get access to otherwise. Green clients will do their own thorough analysis, are generally risk averse and will have a long term investment strategy.

ANALYTIC–AUTONOMISING

§  Will be objective and logical

§  Will follow the meeting agenda

§  They will pause when asked a question to think it through

§  Will prefer information in writing

§  Will not make a decision there and then

§  Will read the small print and follow procedures

§  Meeting will last exactly as planned




Selling to GREEN

Being well prepared and professional is key. Bring experts and/or show them specialised research from your organization. Do not oversell: people don’t convince them, facts do. If you put pressure they will say no.

ANALYTIC–AUTONOMISING

§  Send an agenda in advance and any documents to review

§  Stick to the agenda §  Have supporting facts

available in writing or offer to email

§  Show that you have procedures in place to minimise risks

§  Show credentials and expertise

§  Respect silences



Hub Wealth Clients

They see their Private Banker as someone who helps them think things through. They like to be presented with several flexible options and explore what will be the best one at a given moment.

§ Will appear open and flexible

§ May switch from topic to topic

§ May not give a straight answer (“it depends”)

§ Will want a menu of

options § Will want to involve a lot

of people in the decision

§  A successful meeting swill be long to consider all sides of an argument


FLEXIBLE–COHERING


Selling to HUB

Showing that you’re willing to explore different options with them without showing frustration or impatience is key. They are going to continue thinking about it with or without you, and you stand better chances of influencing them if you join them.

FLEXIBLE–COHERING

§ Offer a menu of options §  Involve a lot of

stakeholders in the decision

§  Show willingness to adapt §  Leave time to consider all

sides of an argument

§  Ask for commitment to small steps leaving options open for later

§  To move them along, start each meeting with a summary of the options that have been considered so far.


The Strength Deployment Inventory (SDI) helps us understand the motivational values of the people around us, and how they differ from our own. Our motivational value system (MVS or “colour”) is a collection of priorities which influence the way we approach others in all life situations. When we act according to our value system, we feel good about ourselves. When communicating with our clients, we tend to create our message according to our priorities, assuming that what is important to us will be important to them as well. Yet if we tailor the message to their “colour”, we will increase our chances of influencing them.

How to Read Wealth Clients Prepared by Mónica Hernanz from The Client Academy. [email protected]. Tel UK: +44 7890 593 408 | Tel US: +1 305 771 4011

MVS (Colour) How to recognise them They are likely to say How to influence them What you should say

Blue This is a people-focused value system concerned with the protection and welfare of others. They are warm and friendly and are motivated by helping others above everything else.

• Talks about feelings and family • Will be sincere, trusting and loyal • Talks about benefits to other people • Will be interested in your opinion and whether you are happy • Will emphasise the relationship • Meeting may be longer than planned if they “connect” with you

• “How can I help you?” • “What do you feel?” • “Let’s see what we can do together” • “I’ll be honest with you” • “Let me do it for you” • “I am interested in your opinion” • “We can’t let them down”

• Don’t go in with a pre-thought solution, ask them for their opinion first • Tell them about the benefits to the individuals and the team • Be genuine: they need to trust you as a person before business • Refer to relationship: “we want to have a long-term relationship”

• “I need your help to figure out what to do in this situation” • “Let’s figure this out together” • “We want to develop a long term relationship with you” • “We enjoy working with you” • “What would be the impact of this on you/ your people?”

Red This is an assertive, goal focused value system motivated by task accomplishment. It takes decisive action and is constantly on the lookout for opportunity.

• Likely to be direct and clear; can be challenging • Gets to the point quickly, focuses on results, will want action • They will be uninterested in the detail • Meeting will be short. They may be doing other things at the same time • Likely to negotiate

• “Let’s get into action” • “What is the bottom line?” • “Do you see what I want?” • “We need to get round this somehow” • “It needs to be done now” • “Can you do it cheaper/faster/efficiently?”

• Talk about solutions rather than problems • Be brief and clear • Present short documents with clear recommendations • Emphasise return on investment, time & money savings • Give them credit for ideas

• “It will be done” • “This is what you will achieve” • “The objectives are...” • “The bottom line impact is...” • “We can do it cheaper/faster” • If you need help or further input from them say: “to achieve the deadline you need to step in..”

Green This is a cautious analytical value system that prefers to think carefully before acting. It is motivated by autonomy and self-sufficiency. It is concerned with facts, detail, objectivity, fairness and principles.

• Will be objective and logical • Will follow the meeting agenda • They will pause when asked a question to think it through • Will prefer information in writing • Will not make a decision then • May make you fill forms and follow procedures • Meeting will last exactly as planned

• “We need to monitor progress” • “There must be a logical reason” • “Is this accurate?” • “Can I have it in writing?” • “Where does this figure come from? • “We must follow procedures”

• Send an agenda in advance and any documents to review •  Stick to the agenda • Have supporting facts available in writing or offer to email • Show that you have procedures in place to minimise risks • Show credentials and expertise • Respect silences

• “Let’s go through it line by line” • “We want to do a thorough analysis” • “We have a procedure in place ” • “We will minimise risks by...” • Use objective language, i.e. ”what issues need to be considered?” and not “what do you feel we should do?”

Hub (black) This is a flexible and adaptable value system that values the welfare and membership of the group. It is capable of seeing all sides of an argument and changing behaviour to adapt to what the group needs.

• Will appear open and flexible • May switch from topic to topic • May not give a straight answer (“it depends”) • Will want a menu of options • Will want to involve a lot of people in the decision • Successful meeting swill be long to consider all sides of an argument

• “It depends” • “This is a consensus decision” • “What about this?” • “What options do you propose?” • “We need to remain flexible” • When asked to make an either/or decision they will say :“I want both”

• Offer a menu of options • Involve a lot of stakeholders in the decision • Show willingness to adapt • Leave time to consider all sides of an argument • Ask for commitment to small steps leaving options open for later

• “Here are several case studies showing different options of what we could do” • “Let’s play devil’s advocate and see it from the other side” • “Who else do we need to involve in the decision?” • “This way we will be able to keep options open for later”

Closing the sale The account is open but needs funds

This is product may be interes7ng to you

I need to leave

Blue “We have spent some .me talking about this product. I would like for us to find the best solu.on for you and your family, whether it is this product or another. Please help me be@er understand what you need in order to make a decision.” (Let them speak, listen and empathize. In the end, aEer listening it could be more of a PUSH:) “In that case, I suggest we proceed like this…what do you think?”

Blue “I greatly appreciate the confidence you have given us in opening the account, however, without the funds it is as if you were not a client. I cannot show you what we can do and they are puMng pressure on me. If it is ok with you, lets take a look together at what type of funding would have the least impact on your actual investment. Tell me…”

Blue “You have men.oned previously that……. Also having in mind that you family is going through…… And that the market is……. Having all this in mind, I believe that this product could be of interest to you because it will provide you with the following benefits:……”

Blue “I am very happy speaking with you and I greatly appreciate that you are telling me these things because it gives me an opportunity to get to know you be@er and find be@er solu.ons for your family. Today I cannot dedicate the .me that this deserves, because at xxxx (.me) I need to leave. Out of respect for my clients, I try to be punctual. When would it be a good .me to con.nue this conversa.on?”

Red “We have spent some .me discussing this product, but if we do not act quickly we are going to lose this opportunity. In short, I think that it is a good product for you because: (bullet points, 1, 2, 3). How do we move forward?” (bring the papers prepared because they could be signed at that .me)

Red “In order to fund the account, do you have an investment at another bank that is not giving you sa.sfactory profits?” (another op.on) “What is is the easiest way to transfer X MM in order to test our services?”

Red “You had told me before that you were looking for a return of…… and this product is offering that.” “I am offering you this product because with other clients in similar circumstances to you they like these characteris.cs: xxxx, xxxx,. What do you think?”

Red “I am going to have to leave at X hour. “Which topics do you think we need to discuss to make the best use of our .me?”

Green (Send them the detailed informa.on prior to the mee.ng. Do not expect a spontaneous decision). “Did you have .me to analyse the informa.on that I sent you? What addi.onal ques.ons do you have? In order to move forward and not have to rush at the last minute, you should make a decision before x date. What else do you need in order to make the decision?”

Green “It has been 2 months since the account was opened, but it is s.ll not funded. In principle, in order to be a client the account must be funded with a minimum of X MM” (Show the condi.ons). (Explain the process, what he/she needs to do and what happens once the account is funded)] “What informa.on do you need from us to be able to fund the account before X date?”

Green “Analysing your long-‐term investment plan for this product, it gives you the following advantages. There are two issues, but we can mi.gate them like this.” (Be objec.ve, do not try to oversell). I will leave this detailed informa.on with you. What other ques.ons do you have? (Do not get crea.ve or improvise, if you do not know, send the informa.on later) What other informa.on could I send you in advance of our next mee.ng?”

Green (Check the .me that they have for the mee.ng at the beginning of the mee.ng. Tell them at what .me you will have to leave. Let them know with enough .me instead of cuMng it short). “We have 30 minutes leE. What would you like to analyze in the .me we have available?” “Do you need any informa.on in wri.ng that I could send you so that you can analyze it before our next mee.ng?”

Hub (black) “Lets go through everything that we have discussed about this product to see if with having all the perspec.ves, we find the best solu.on.” (Review together all of the op.ons/opinions. Do not lose pa.ence). “Great, now that we have thoroughly reviewed it, the best op.on seems to be….do you agree?” “If you commit to this minimum, if the circumstances change you will s.ll have these other op.ons available”

Hub (black) “Since the account has been open for X .me and is s.ll not funded, I would like for us to examine the op.ons that you have for funding so you can choose the best one. Normally, clients opt for these two funding op.ons, this and that… What other op.ons are you considering? …. Lets look at the pros and cons of each op.on.”

Hub (black) “This product gives flexibility because…” “Lets think about which alterna.ves you have with respect to this product” “If you move forward and later change your opinion, the easiest way to cancel or change it would be….”

Hub (black) Of course it is important to consider all the perspec.ves and I am here to help you to think about them and assess them to the extent that you can. Since I will need to leave in 30 minutes, what do you think if we summarize and try to see which is the best op.on as of now?” “….I need to leave, at this point the best op.ons seems to be xx and it looks like we can rule out xxx. I suggest that the next steps are xxx. What can we decide on at this point?”

How to adapt sales messages to different SDI Wealth Clients Prepared by Mónica Hernanz from The Client Academy. [email protected]. Tel UK: +44 7890 593 408 | Tel US: +1 305 771 4011

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Fiba seminar how to read wealth clients 15 oct 2013