Make conversations the cornerstone of your business

Conversations are an important tool for advisers as they give them the chance to find out about their clients’ circumstances, the financial products they have in place, and to test the suitability of these products. In fact, advisers who are not having an in-depth conversation with their clients are taking value off of the table – leaving their clients more vulnerable to ending up with the wrong product and missing the opportunity earn additional income.

So, why are conversations so important, and how can you harness the power of conversation to benefit your business?

According to Harvard Business School, we converse with others to learn what they know as well as to share what we know while managing others’ perceptions of us. Harvard Business School says that the two central goals of conversation are information exchange and impression management – and both of these are important considerations for financial advisers.

Following a number of studies into the topic, Harvard found that asking questions is the key to having meaningful conversations – not only to access information, but also providing an opportunity to give a good impression and be perceived as more likeable.

In one of the studies Harvard researchers found that those who asked more questions during a conversation, specifically follow-up questions, were perceived as more likable, both online and in person.

The researchers found that follow-up questions show that a person is not only listening, but is interested, demonstrating care, validation and understanding. So, by asking more questions of your clients, you not only gain more insight into their circumstances, which can help you to recommend the right product for their circumstances, but you can also develop a stronger relationship.

Indeed, the Harvard study notes that instead of trying to impress the other person by focusing on yourself during a conversation, simply focus on learning more about them.

Conversations are important for everyone, but they are particularly important for financial advisers and they should form the cornerstone of any successful advice business. By asking the right questions and having meaningful conversations with your clients, you can put in place the building blocks of success. So, make the most of this year’s National Conversation Week and ask yourself how you can use conversations to grow your business.