Evelyn Zohlen uses discovery meetings to do more than wheedle personal information out of prospects. She uses them to differentiate herself from the competition.
The founder of Inspired Financial, which has $125 million in assets under management, uses a rectangular piece of butcher block paper in discussions with prospective clients to illustrate their goals and relationships. The visual places the person or couple at the center of these priorities.
During the first hour of the 90-minute meeting, Ms. Zohlen essentially sketches out a “mind map” of what's important to them and reviews their financial standing and opportunities. She uses the final half hour to describe how Inspired Financial's services would help them reach their goals.
“In that meeting we see if we are a good fit for each other,” she said. “If so, I expect to be working with them for 20 years.”
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Ms. Zohlen said after about 40 minutes she can tell whether the prospect's needs match the comprehensive services the firm provides; then the conversation goes one of two ways.
If Ms. Zohlen believes they'll work well together, she'll present a list of the firm's services and highlight one or two that will immediately help the prospect's situation and a few others that could play a role in their financial success in the future.
She's learned that
investing time in the discovery process is well worth it to avoid taking on certain clients.
“If it's not a good fit, it will be hell for about five years and then they'll leave anyway,” Ms. Zohlen said.
Her discovery process, for instance, can reveal a client who wants to be called about every trade. She's not looking for clients who won't trust her decisions.
Fees the Huntington Beach, Calif.-based firm charges are not something she brings up during this meeting, unless she is asked about them. Ms. Zohlen talks about fees during the second complimentary meeting the firm offers to prospective clients — a session dedicated to demonstrating the value of the firm.
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At that meeting, she'll provide a written investment statement she creates specifically for that prospect, including a fee schedule.
“After that presentation, no other adviser they may be considering looks like us,” Ms. Zohlen said.
Prospects sign on to become clients about half the time after that second session, she said.
Tip sheet:
· After learning about the individual or couple, use a written list of the advisory firm's services to point out and describe how you would help the prospect achieve their goals.
· Ask prospective clients about their values and how money was handled in their home growing up. Try to drill down to their deep-seated feelings about money.
· Discuss prospect's specific aspirations, such as having a beach house or philanthropic endeavors, so you can describe how the firm can make their lofty goals a reality.
· Conduct client surveys to see what services truly resonate with clients and mean the most to them. These may be the best ones to point out to prospects.
· Invest time in discovery meetings with prospects to make sure they are a good fit with your business.
