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Perhaps one of the most frustrating aspects of being a
successful producer is facing the challenge of the
“lukewarm prospect.” You know the type: They’ve
expressed some interest in your business, maybe even
agreed to a meeting, yet they’re still not quite ready
to hand over their business.
The
good news is that even the less-than-enthusiastic
prospect is still just that, a prospective client. The
key to turning them into a bona fide client? Develop a
solid plan for parlaying their limited interest into
action.
Back
down and listen up
Ironically, it seems the best way to light a fire under
these reluctant prospects is to play it cool. Instead of
storming the meeting armed with all your best selling
points, do what Marcus Chandler, National Program
Director of 401kExchange calls “letting them off the
hook.” Chandler suggests that at your first meeting you
offer a thorough evaluation of their existing plan from
a completely independent view — while reminding them of
the fiduciary importance of acquiring this independent
opinion.
The
initial meeting is also a good time to let the client do
the talking. Sean D’Souza of psychotactics.com
recommends spending the first five to seven minutes of
the meeting letting the client ask you the questions,
giving them control. Then after those first few minutes,
start asking questions you’ve prepared about your
client’s needs, current plan, and challenges.
At
the end of your first meeting, you should have two
things in place:
• An
opportunity to return (you have to present the results
of your evaluation, right?)
• A
solid idea of the areas that are of most concern to
them, thanks to your list of questions
Let
the data do the driving
Once
you’ve assessed your prospect’s current plan, you can
use that data to your advantage. One good place to start
is with the plan’s current fund line-up. First, identify
poor performing and expensive funds. When you show these
wanting funds against a higher-quality comparable fund
(such as those offered by Transamerica Retirement
Services), you’re sure to drive home the point.
Also,
be sure and mention if there are any types of funds that
are missing or underrepresented. Then, you can remind
the prospect — once again — of their fiduciary
responsibility to provide a wide range of quality
funds.
Make
’em beg
Even
though the current plan’s shortcomings will become
obvious by the second meeting, that is not your best
time to “show your hand.” Chandler says, “If you present
a proposal prematurely, without ensuring you have access
to all the key decision-makers, and without
understanding the strength of the relationship between
the sponsor and its current advisor, you run the risk of
having all of your best options or ideas adopted by your
competition.”
Instead, if you play your cards right — make the
prospect’s fiduciary responsibilities foremost in his or
her mind, ask the right questions, and provide
benchmarks to identify the strengths and weaknesses of
the plan — the prospect will ask you to present a
proposal.
And
that’s when your lukewarm prospect will turn into a hot
commodity.
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