Clients want advisors who understand them. They want advice that is based on experience, but which is tailored to them and their specific needs. However, the reality is that both clients and advisors also face significant time constraints. With numerous competing priorities, clients often feel overwhelmed, while advisors are under pressure to meet billing demands. This article delves into the layers of comprehension necessary for advisors to connect deeply with their clients, from grasping the broader context of their businesses, to recognising the individual needs of each client.
Let’s explore how advisors can cultivate genuine curiosity and create meaningful relationships, even in a time-pressed environment.
What does understanding the client mean?
The first thing that advisors need to be clear on, is what clients mean by the notion of understanding. As with so many of the phrases we throw around, it can mean different things to different people. When we conduct client listening, this phrase is one that we often explore. From the conversations we have had with hundreds of clients, we have come up with the following pyramid of client understanding:
The context – at the bottom of the pyramid is an understanding of the context in which the client operates. This is where previous experience of working with clients in the same sector comes into play. By way of example, public sector clients will often describe the importance of understanding the politics here. Private sector clients will often talk about the specific competitive landscape, or the nuances of their industry. The more the advisor works with an industry, the more they are able to understand the container in which the business operates.
The business – once advisors can show they understand the container, they then need to show that they understand the specifics of the client’s business. That means that the advisors know about what is in the public domain, that they understand some of the specific challenges and opportunities they face and they know the key stakeholders within the business. They also have started to go beyond what is visible in the public domain, to start to understand the culture and the people who work in the business. An example of something that is very business-specific is the appetite for risk of a business. This can have a huge impact on the advice given, but is so rarely explored.
The challenge – higher up the pyramid, advisors can start to get curious about the problem/opportunity at hand. Clients want advisors who can really get their head around what it is that they are grappling with. It might be that this understanding leads to a disconnect between what the advisor can offer and what is being sought. However, to become a trusted advisor, this ability to say 'no' is also crucial.
The value – advisors can only start to understand the value that they bring once they have gotten under the skin of the challenge. However, whilst they must understand what the end goal is, they also need to understand their role in getting the clients there. For some clients, advisors are there to provide an extra pair of hands. For others, the advisors are key strategists. Then there are clients who need an advisor who can manage the risk. It is at this level that we see the most disconnection; advisors who go the extra mile (and charge for it) when it isn’t needed, or those who fall short because they didn’t realise what the value was that was being sought.
Me – the top of the pyramid is 'me' – because ultimately, clients want advisors who also understand them as individuals. What they need to thrive and what they need to make the relationship thrive. That can be down to details like whether meetings should be online or in person, or whether they are a details person or someone who just needs the bottom-line. To reach this level, there needs to be a sustained long-term relationship. The best advisor-client relationships are found here.
How to use the knowledge of the pyramid to connect
Advisors can do a lot of learning before they jump to level 3. Some will do the hard work to get there, many will try and jump into level 3 as soon as an opportunity presents itself. The first two levels are really basic business development skills. If you are focused on a particular industry, it is about immersing your advisors in it: attending industry events; reading industry-relevant news; speaking to clients in the sector.
Business specific understanding can come from immersion too: following the client's online accounts; or reading their annual reports and company news. It also comes from stakeholder mapping and discussions with key stakeholders.
This foundational level of understanding needs to be conveyed to the relevant stakeholders in the business. It is often what is needed to get a foot in the door. This is another dance that needs to be carefully orchestrated. We often hear clients say “they could do more to sell themselves” – but “we don’t like a hard sell”. So, advisors need to walk the tightrope of curiosity, without jumping over the edge and pushing too hard.
However, only once that foundation is laid, can advisors start to become curious about the challenges and opportunities that clients have. This takes time and listening skills. It is not about showing what you can do, but it is about really getting to the heart of what the client wants to do. Too many advisors are on transmit rather than receive.
This level of understanding is what is often required to win work. However, to truly deliver, the curiosity needs to continue. Again, it is only through listening that advisors can understand what the value they are bringing looks like – and how to deliver it not only in a way that connects with the business but also with the individuals who they are working with.
How does understanding balance with time?
This is where it gets interesting! At a recent event that we facilitated for a group of in-house lawyers, where we explored the challenges they faced across a range of businesses, the number one challenge espoused was time. In-house lawyers are busy, and that is reflected across numerous roles. Private practice lawyers are also busy – and again the same is true of other professionals. Private practice lawyers also have the additional pressure of billing targets. How then, can clients get what they want – without having to pay for it – and how can advisors deliver?
We believe that the only way is by listening and that more advisors need to understand the value of curiosity. It never ceases to amaze the author how many times client listening interviews throw up issues that are so easily solvable – if only they had been asked about them sooner.
Curiosity needs to be a continuous process, not just the preserve of annual client listening exercises, or when trying to win a new client or pitch for a new piece of work. When done continuously, this doesn’t look like hours in a room finding out all about a specific business, it looks like 5 minutes at the start of each client conversation. It looks like listening for more than speaking in the first half of any interaction.
To find out how we can help your advisors listen and walk the tightrope of curiosity more adeptly, get in touch.
Comments