Better discovery process key to signing up more clients

Halbert Hargrove taps the medical profession's expertise in drawing out important client information.
APR 22, 2015
A California advisory firm that's testing an approach adapted from medical procedures to conduct information discovery with prospective clients has found the interview technique to be effective at closing prospects and determining those who will be ideal clients. Long Beach, Calif.-based Halbert Hargrove tested a four-step questioning process that physician Jeff Belkora developed to encourage patients to relay their health concerns to medical professionals and reveal underlying problems that may need to be addressed. “For the longest time we knew the right way to interview and bring clients on board was to conduct a discovery process, but we were inconsistent and got very different results between advisers,” said JC Abusaid, Halbert Hargrove's president. “This has been eye-opening for the advisers who are using it.” Halbert Hargrove has found that by getting the prospect to disclose specific, deep-seated financial concerns or issues, its advisers can more effectively tell the individual what they would do to meet those needs. (More: Halbert Hargrove's Williams: 3 ways to retain talent) Dr. Belkora, associate professor of surgery and health policy at the University of California, San Francisco, adapted his discovery protocol to meet the needs of financial advisers as a consultant to Russell Investments, which approached Halbert Hargrove about trying out the process dubbed “SLCT,” pronounced select. The first of Dr. Belkora's four steps is “scribing,” or allowing the prospect to talk without interruption, where the professional just writes down what they are saying. The next is “laddering,” where prospects are asked to elaborate and give details on issues they brought up. The final steps including “checking,” where an adviser uses his or her expertise and brings up other issues the prospect might not have thought of, and “triage,” where the professional prioritizes what issues need attention. “The most imminent items may not be the first or second things that the client discussed,” Dr. Belkora said. (More: Adviser explains how firms improve business with study groups) Medical professionals have found that doctor appointments are stressful for patients and they tend to forget to tell certain information that can be important to providing them with the best care, he said. While Halbert Hargrove doesn't have hard data to offer on its close ratios, Mr. Abusaid said they are up, and that the firm is attracting more of the type of clients who fit best with the firm's approach. It is eliminating prospects who are looking for short-term results. The firm has about $4 billion in assets under management. Initial results with a sample of clients show clients talked more during the telephone discussions using the technique: 68% of the dialogue versus 57% of the time with the old discovery process, according to Halbert Hargrove. A review of the study Dr. Belkora conducted with Halbert Hargrove is in the Summer 2015 edition of The Journal of Wealth Management.

Latest News

Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034
Social Security trustees see one less year in insolvency countdown, project shortfall to start 2034

New report shows dimmed outlook for benefits to retirees and disabled Americans, creating further pressure for federal tax hikes or more borrowing.

NY Republican Stefanik presses SEC to probe Harvard bond sale
NY Republican Stefanik presses SEC to probe Harvard bond sale

Open letter to SEC Chair Paul Atkins questions whether the Ivy League university withheld material information prior to its $750 million taxable bond offering.

Ex-LPL leader re-emerges at The Wealth Consulting Group
Ex-LPL leader re-emerges at The Wealth Consulting Group

The Las Vegas-based hybrid RIA overseeing $8.8 billion in assets has named Andy Kalbaugh president to help scale its advisor platform.

Envestnet extends investment offerings with new alts model portfolios
Envestnet extends investment offerings with new alts model portfolios

The wealth tech giant – in collaboration with Fidelity, BlackRock, State Street, and Franklin Templeton – is offering its advisor and wealth firm users more ways to diversify.

Just as wealth industry M&A was picking up, economic uncertainty could kill it again
Just as wealth industry M&A was picking up, economic uncertainty could kill it again

Deal volume increased post-election but now caution has taken over.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave