Most insurance agents and advisers are doing their best in providing professional advice in the best interests of their clients. Regrettably, there are minority who leave a bad taste and reinforce the negative perception that members of the public may hold. Asia Advisers Network's very own - Junaid Farid Khan - met up with a number of advisers in his search to increase his insurance coverage. Below is his observations and suggestions as a marketer.
1. Did not ask about my goals
Not all the advisers asked about my goals and priorities. Although some of the advisers asked about my needs, others came and presented pre-planned products and plans that they wanted to sell without a financial needs analysis.
Solution: You may be able to get customers by pushing products. But to build long-term valuable and profitable relationships with clients, you should take the time to understand the buyer’s personal requirements and before demonstrating your experience and expertise to craft a financial plan that works to achieve them.
While this is financial planning 101, it is worthwhile to remember that different people have different needs and there is no one-size fits all approach to investing, insurance or savings.
2. Did not talk openly about risk
All investments come with a degree of risk. Reasonably, the higher the risk, the higher the reward.
While the advisers I met were enthusiastic in highlighting the benefits of the plans, disappointingly none highlighted the risks involved.
Solution: A good adviser should explain the related risks and also run the numbers showing what their clients stand to gain and lose in different market scenarios.
A good adviser should demonstrate expertise by explaining and designing a portfolio that is resilient and in line with a client’s risk appetite.
3. Did not know the answers
Advisers are supposed to be experts of financial planning and their company’s range of products. But to my disappointment, when I asked an insurance adviser about a particular product that I was considering, she was clueless and had to call the company few times for information.
Solution: Make sure you know your company and your products very well. A good adviser won't just try to sell a certain fund or policy. You should be able to explain the various options in detail and encourage the clients to learn more about what each one entails to.
4. They put their interests ahead of mine
Financial planning should be done after looking at the individual circumstance of the buyer as well as risk tolerance. Many advisers I met spent much of the time trying to convince me the benefit of taking a long term policy and paying a high premium, rather than spending more time to ask me questions to find out about my background and financial status.
Solution: If a buyer feels that an adviser is talking 90% of the time, he may lose confidence and interest as he feels he is not heard. “Help” is an important word which can be used during the conversation as it gives the buyer the trust he is looking for. As an adviser, you should always remember that conversation should be more like 60/40 and should be focussed on helping the clients with their immediate and long term needs.
5. I felt pressurised to buy
Some of the advisers wanted me to make an immediate decision. As a marketer, I can understand the need and urgency to try to “close” and to answer any objections that I may have. But when it was obvious that I wasn’t ready to make a decision and unsure as to whether they are the adviser I want to work with, further attempts just felt like pressure selling.
Solution: There’s a thin line separating persistence from hard selling. Once you have done all you can and the prospect firmly asks for more time, respect that. It is better to ask for a timeline to follow up with a courtesy call to check if the prospect is ready or if there are further questions.
Junaid Farid Khan is an experienced marketer who holds a MBA. He is Assistant Marketing Manager of Asia Insurance Review and Asia Advisers Network.
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