Are you familiar with the knowing-doing gap? It’s the disconnect between understanding something and actually putting it into practice. I often relate it to losing weight. We can read hundreds of articles on the topic yet struggle to make progress. The knowledge is there but the motivation to act is often missing.
This gap is amplified in financial services. Clients are bombarded with information often leading to confusion and indecision. Our role as advisors is to bridge this gap by providing knowledge and inspiring action. To do that, we can use personal connection to create high-touch experiences.
Empowering Meaningful Goals
Financial planning is about helping clients achieve their dreams. For example, our process uncovers what truly matters to our clients while creating a path to financial well-being.
This framework is designed to explore their situation beyond traditional financial metrics through conversations centered around meaningful goals – those that bring them joy, purpose and a sense of accomplishment. For example, spending quality time with their loved ones, pursuing entrepreneurial dreams or embarking on life-changing adventures.
When our clients’ goals are clearly identified, we use tools, solutions and analytics to structure their portfolios to grow their wealth and reach those dreams while helping them form effective habits to bridge the gap between knowing and doing.
This approach transcends the conventional focus on investment performance or portfolio optimization – it’s about aligning financial strategies with the essence of what truly matters.
Strategies To Form Effective Habits
Here are a few strategies to achieve meaningful results:
Foster deep connections. Financial planning is intrinsically tied to personal aspirations, fears and dreams. Take the time to truly understand clients’ values, goals and what brings them joy. Build relationships based on trust, empathy and shared purpose. Focus on understanding these goals so that clients’ plans are aligned with what’s most important to them.
For example, think about how many of your clients have navigated the complexities of divorce. We’re inspired by those who decide to embrace this new chapter as an opportunity to live more fully and pursue new experiences. Our clients have shared how much they appreciated having a team to help them financially navigate such a massive life change. It is important to acknowledge that everyone’s goals are deeply personal and unique – and be there to help them as those goals change depending on the stage of life they are in.
Embrace technology as an enabler. Digital tools and data can help you get to know your clients better. Embrace technology to improve how you work, communicate more effectively and offer personalized service.
For example, if you don’t already use a CRM, it captures comprehensive client data and portals allow advisors to access the client information they need when they need it. Having a bank of client data is invaluable to showing your clients you are tuned into their personal needs and concerns.
Tell stories that inspire action. The most effective way to motivate change is through the power of storytelling. We often share real-life examples of how financial planning has transformed lives. Painting a vivid picture of the future your clients envision helps them achieve it.
Consider the story of a young couple who dreamed of early retirement. They diligently followed their financial plan, made sacrifices and consistently invested. Through careful planning and disciplined saving, they were able to retire in their early 50s, allowing them to travel the world and pursue their passions. Sharing stories like this can inspire clients to take action and visualize the possibilities that await them through sound financial planning.
Be a catalyst for change. Help clients identify their blind spots, overcome inertia and make informed decisions. Hold them accountable, celebrate their successes and provide ongoing support throughout their financial journey. This can be achieved by actively listening to clients, soliciting feedback through surveys and tailoring your communication style to their preferences.
Clients may have negative emotions or limiting beliefs around money that could hinder their financial well-being.
When it comes to blind spots, clients may have negative emotions or limiting beliefs around money that could hinder their financial well-being. This might manifest as financial anxiety, guilt, shame or difficulty communicating about money. By gently exploring these underlying issues and providing resources for addressing them, you can empower clients to overcome their blind spots and make healthier financial choices.
Focus on impact, not just returns. Shift the conversation from solely focusing on investment performance to creating a meaningful impact. Help clients align their financial decisions with their values and purpose. Encourage them to think about their legacy and the positive change they can create in the world.
In practice, this one hits home for me as I have a nephew with autism. We started a foundation in his name. I often use this example with my clients so they can experience my human side and consider ways to give back. By discussing philanthropic goals and incorporating charitable giving strategies into their financial plans, you can help clients leave a lasting legacy and make a positive impact.
Maintain the human connection. Last but not least, create personal connections! Schedule regular check-ins, send personalized greetings and prioritize face-to-face meetings whenever possible.
For example, we track important dates like anniversaries and birthdays. One of our client’s husbands used to send flowers every anniversary, but he passed away. Now, we continue this tradition in his memory. These small acts of kindness demonstrate that we genuinely care about our clients and value the relationships we’ve built.
This is the human side that’s often forgotten in financial services.
Best Of Both Worlds
By building deep connections and inspiring action, we can empower our clients to achieve true financial well-being. This is the human side that’s often forgotten in financial services. It bridges the knowing-doing debate – and it’s backed by delivering exceptional outcomes.
We're excited about the possibilities of scaling this approach and sharing it with the next generation of advisors, paying it forward and expanding its impact.
Lee Korn is a Financial Advisor and Principal at Opal Wealth Advisors.
