Prospects lie
Prospects lie to us on a daily basis. Some do it unconsciously, some do it on purpose, and some do it accidentally. Whatever the cause, the result…
The challenge is we like to believe people are honest. As talented advisors, we don’t want to believe anyone would lie to us. As human beings, we approach every conversation expecting to hear the truth. This combination of factors makes us more casual in our approach with prospects, and that hurts the final outcome. Even when we do suspect the prospect is delivering false information, we are uncomfortable with the idea of suggesting the potential client is not being truthful or is outright lying.
The uncomfortable reality around trust isn’t the only factor that influences our interactions with others, however. In “Talking to Strangers,” Malcolm Gladwell explains how our assumptions and habits influence our interactions with strangers.
In one example, Gladwell discusses a study that examined the bail process within the U.S. judicial system. The study compared a computer program with a judge’s ability to predict whether a prisoner would commit another crime or skip their court date. In most cases, the computer was more accurate. Most judges want to look into the individual’s eyes before making a judgment. Unfortunately, their emotions and assumptions may push them toward the wrong decision.
This same clouded judgment has interfered with my own work. I recently met with a prospect who had been in the business for 50 years. He built his practice with a small team of employees, and he had become rather successful. Once I understood the company structure — the advisor and a handful of staff — I assumed he was the only decision-maker. We worked our way through the sale until I sent him a contract. It should have been signed quickly, but he responded with a surprising note: He needed to review the contract with his wife.
I had never realized he partnered with his wife on larger financial considerations. Instead, I had assumed, based on his status within the company, that he would be the only person I’d have to consult. What I should have done was drilled deeper. During our conversations, I could have asked, “How did you make your last major business decision?” or “What processes do you have in place for making significant business decisions?” With each question, I would have gotten closer to the truth: His wife has a voice in the business.
Instead of making dangerous assumptions or accepting prospect responses at face value, we need to challenge their answers. Although we may need to point out their contradictions, we can do so in a professional and friendly way.
Now when I’m working on a sale, I may ask, “Does anyone else help you make choices in the business, like a partner, a CFO, or an advisor?” If they respond with a “No,” I may say, “OK. Sometimes we talk to advisors who make decisions with their staff or talk to their spouse. That won’t be the case here?”
Occasionally, the prospect with respond with, “Well, actually…” before correcting their original response.
When managing prospects, think about your own behavior as a consumer. Do you tell the sales consultant everything or only what you think they need to know? Human nature pushes us to hold back as consumers, but sales prompts us to pull the truth out our prospects when we’re seated at the sales table.
Challenging prospects may feel uncomfortable at first, but it helps us get closer to the truth. The truth will help us spot bad prospects early in the sales conversation, and it will also help us identify key issues early on that may help us select better products or services for the prospect. When we are better at pushing back, we can deliver better results for our company and our future clients.
John Pojeta is VP of business development at The PT Services Group.