Traditionally, specialist subjects on Mastermind have been fairly weighty. But a recent contestant came in for criticism for choosing the sitcom Friday Night Dinner, while journalist Jennie Bond chose Peppa Pig for her turn in the chair.
But we all know what we know. Ask me something about Greenland and I’ll give you the answer. Timothy Dalton could be my own specialist subject if I were ever brave enough.
If you’re lucky/unlucky enough to get stuck with me at a party, I can also entertain you with facts about UK cathedrals, The Sopranos, the complete works of Agatha Christie, and Albanian dictator Enver Hoxha.
All topics that, for one reason or another, I’ve become interested in, to the point of having a fairly encyclopaedic knowledge.
And I’m always a little surprised to discover others don’t share this deep understanding of the same subjects. I was recently waxing lyrical about who might be the next James Bond, and my friend gently pointed out that he hadn’t watched a Bond film in years. He then proceeded to talk at length about philosophy, which had me yawning away.
Turning financial advice into financial education helps to build trust
As a financial planner, you have a laser-focused insight into everything within your professional scope. You know thresholds, caveats, and tax bands. You know the power of compound interest and the corrosive effect of inflation. You know your DB from your DC pension.
But there’s every chance that most of your clients won’t have this same granular level of knowledge. With this in mind, it’s important to consider how you impart your wisdom to give them complete clarity and control over their finances.
Here are six key considerations for your conversations with your clients.
- Show, don’t tell
You don’t need to talk down to your clients. But littering your conversation with financial jargon could have them yawning, just like me hearing about Socrates.
As a copywriter, one of the first things I learned was “show, don’t tell”. This is a good mantra to apply in financial planning, too. Try to bring your recommendations to life using examples or metaphors for your clients.
So, if you’re talking about diversification, frame it as “not putting all your eggs in one basket”. And compound interest as “a snowball getting bigger the longer it rolls”.
- Remember, things change
You’ll be following the budget avidly on 26 November. You probably subscribe to a range of professional publications, and you’re au fait with every change, big and small, in the financial world.
Your clients may have a passing interest in all of this and may keep up to date with certain aspects of financial policy. It’s unlikely, however, that they’ll know it all. You need to make sure your clients understand the implications of any financial change, and if there’s any action they could take.
Signing up to our post-Budget mailer could help you do that, giving your clients a rundown of the key announcements from the chancellor’s speech just a few hours after it’s delivered.
- Don’t draw assumptions
Faleminderit. Satriale’s. Narthex. Koskov. In order, these are:
- “Thank you” in Albanian
- The pork store from The Sopranos
- An entrance area in a cathedral
- The bad guy from the Bond film The Living Daylights.
You may, or may not, have already known this. But when we’re talking at our hypothetical party, it would be pretty remiss of me if I littered my conversation with assumptions, and pretty boring for you.
So, explain everything, even if it seems fundamental to you. You probably talk about pension tax relief and Inheritance Tax (IHT) thresholds every day. But your clients likely don’t think about them from one review to the next and may need a reminder.
- Balance practicality with emotion
Financial decisions carry a lot of emotional weight for your clients. While you and their head might tell them one way would work better, their heart may say otherwise. It’s very easy for you to give them the factual information, but you also need to know what’s driving them.
In money matters, clients are very often looking for reassurance. Listen out for cues as to whether they mean something that goes beyond what they’re saying. For example, “Are my investments safe if the markets are volatile?” often means “Will I lose a lot of money?”. Empathetically answering their questions can help them achieve their desired outcomes.
- Ask them to ask you
Nobody likes to look foolish. In school, putting your hand up and giving the wrong answer would often result in much sniggering. Even educated grown-ups still have this nagging fear at the back of their minds.
Your clients may appear confident, savvy, and knowledgeable, but may be afraid to ask questions for fear of looking silly. You can nip this in the bud by encouraging questions, however basic they may seem, explaining and clarifying as you go along, and checking that everything is clear.
- Turn numbers into money
Inflation is 3.8%, your investments grew by 5%, interest rates are 4%, blah blah blah. Of course, these figures are important, but in isolation they’re pretty meaningless.
As a client, I want to know what that means for my money. Is 5% good or bad? What is it in actual, monetary terms? Telling your clients they’ve earned an extra £12,000 on their investments will make them much happier.
Get in touch
Yardstick’s specialist subject would be marketing for the financial services profession, and we’re pretty confident we’d be walking away with the trophy. We can help you with all aspects of your client communications, conveying your messages with clarity.
To find out more, please email hi@theyardstickagency.co.uk or call 0115 8965 300.
