The power of a handwritten note

I saw this cartoon on a Facebook news feed a few days ago, and I had to laugh at how true it is. It made me remember back to the dial-up connection days when AOL ruled the universe, and how incredibly excited I would be to hear the "You've Got Mail" sound when logging into my account. I can also remember how dreadfully disappointed I was when I didn't have any new e-mails. Back then, getting an e-mail from a friend, family member, or acquaintance ranked high on the cool chart and definitely had a "wow factor". 

Fast forward to today: my inbox is constantly being bombarded by junk, spam, phishing, meeting requests, promotional discounts, and business conversations. Some days, I dread opening my inbox because I know it is going to be a chore to go through all the e-mail, and rarely do I find the time to read every message. Today, if I want to have a conversation with a friend, family member, or acquaintance, text messaging or FaceTime is a much quicker and more personal alternative. I even do most of my banking online these days, so electronic statements and bills add to the clutter in my inbox.

Yet, every day when I walk to the mailbox to get my mail, there is that same anticipation I had years ago when logging into my AOL account. Don't get me wrong, I still get my fair share of credit card offers, solicitations, and junk in the mail, but every once in a while I'll see a handwritten envelope that contains a personal message from a friend or family member. This is the kind of mail that makes a connection with me and ALWAYS puts a smile on my face. 

I suppose the scientific reason for the delight we have in receiving personalized cards and messages in regular mail has something to do with the principle of scarcity, although I have no basis of evidence for this and I haven't had the chance to read any scholarly articles on the subject. Nevertheless, utilizing this powerful tool can be a major differentiator in the sea of sameness. 

Put yourself in your prospect's shoes. They, too, are likely bombarded with a never-ending stream of e-mails filling up their inbox. Imagine their reaction when they open up a handwritten envelope that looks nothing like a bill or invoice with a personal message from you telling them how much you enjoyed your conversation the day before, wishing them good luck with their son's soccer tournament this weekend, and that you are looking forward to seeing them again soon. I think that sends a very different message than an e-mail stating the same.

Here are some tips to remember when sending a handwritten note:

• Use a plain, non-standard sized white envelope. Using a traditional envelope will make your note look too much like a bill or other junk correspondence. Try to find cards and envelopes that are sized like birthday cards or greeting cards that you would find in a card store.
• Handwrite the addresses on the envelope. This goes without saying, but typing the address and using a pre-made return label do not convey a personal touch.
• Put an actual stamp on the envelope for postage. Please do not use a postage machine to stamp the envelope. Go buy a book of stamps and do it right!
• Write everything in blue ink. Studies have shown that writing in blue ink is preferable.
• Keep your message short. The point is to make the prospect, client, or center of influence feel special. Keep it short and simple, with little or no mention of business. Express gratitude, appreciation, or encouragement instead of the usual utilitarian purpose behind most correspondence.
• Make sure your handwriting is legible. Don't rush your writing to the point you appear sloppy and dysfunctional. Give the impression that you took your time to write them a nice note.

Try it for yourself. Although it may seem a bit nostalgic, handwritten correspondence demonstrates an investment of time, effort, and money (e-mail is free) with a sense of meaning that goes far deeper than an e-mail or text message. Letting your prospects and clients know you care about them enough to take 5 minutes out of your busy schedule to do something as archaic as writing a note and putting it in the mail goes a long way in building loyalty. They'll love it, and you will also benefit from the feeling of satisfaction in knowing you are giving an experience they don't get elsewhere.

Want more strategies and tips on how to maximize profitability and deliver a memorable experience for clients? Check out Game Changers: 7 Things Every Financial Advisor Needs to Know on Amazon or iTunes today.

Need to be persuasive? Here's how...

Not that anyone really cares, but I'm one of those nerds who likes to read. I am absolutely fascinated by books that discuss human psychology -- especially the ones in which I can translate the concepts presented into meaningful and useful tactics for financial advisors. I read a passage from Nobel Prize winning author Daniel Kahneman's Thinking, Fast and Slow, recently which I found to be particularly relevant to an area in practice management often given little thought by advisors. In fact, these tactics could be useful in universal application across many disciplines of professional services, but I wanted to share with you how to write a persuasive message more convincingly. I'm going to show you how to trick your prospects and clients into believing your recommendation is superior to their current strategy (hopefully it is, too!).

The general concept here is that anything that reduces cognitive strain, in other words makes you think less and rely more on intuition, is more believable in our eyes. Let this work in your favor. There is actually a field of science devoted to studying this, and it is called truth illusions. Nevertheless, the first thing all of us can do to enlist cognitive ease to work in our favor is to maximize legibility. How? Consider the following two statements:

Philadelphia is the capital of Pennsylvania.
Pittsburgh is the capital of Pennsylvania.

Both of these are false (Harrisburg is the capital of Pennsylvania), but it has been proven through experimental studies that the first is more likely to be believed. Why? Simply because it is easier to read. Our brains don't have to put forth as much effort to read the bolded statement, especially when contrasted with the non-bolded statement.

So, let's pretend that you are recommending that a client dump his current investment strategy and enlist yours. What would you do? I might suggest invoking the tactic above to subtly suggest that your strategy is superior over the current one. Write your recommendation statement in bold letters, followed by the client's current strategy in normal lettering.

Recommendation: Invest 60% of your portfolio in stocks.
Current Strategy: Invest 80% of your portfolio in stocks.

Here are some other tips from Kahneman to make yourself more credible and intelligent in the eyes of your prospects and clients:

• Avoid complex language when simpler language will suffice
• Ex. use stocks instead of equities
• Use high-quality paper that maximizes the contrast between characters and their background
• If you print something in color, it will be perceived as more truthful when printed in bright blue or red as opposed to shades of yellow, green, and pale blue
• To make your message memorable, put your ideas into verse
• Ex. little strokes will tumble great oaks vs. little strokes will tumble great trees
• If quoting a source, choose a source with an easily pronounced name
• Ex. Smith vs. Djikstra

While all of these tactics are very good advice, Kahneman also warns us that if our message is obviously nonsensical or contradicts facts we know to be true, it doesn't much matter what tactics we use. Translation: make sure your recommendations are sound and that they are somehow a better strategy to help your client reach his/her goals. Truth is perceived when it is strongly liked by logic or some association to other beliefs and preferences that we hold, or when it comes from a source we trust and like. These all bring about a sense of cognitive ease, and therefore the perception of truth in the statements is higher.

We have all heard that human beings are inherently lazy. What I (and Kahneman) are suggesting, however, is that the brain is also inherently lazy. If we want to persuade our clients and prospects to take action by implementing our recommendations (which is a more efficient means to reaching their goals), then we should employ tactics to help motivate them to make decisions. Above all, make sure your recommendations contain sound advice and relate to your client's overall goals and objectives.

I hope this helps!

Want more strategies and tips on how to maximize profitability and deliver a memorable experience for clients? Check out Game Changers: 7 Things Every Financial Advisor Needs to Know on Amazon or iTunes today.

Have a problem? Make it a process

What do you do when you face a problem in your business? We all have them. For some advisors, it is an internal problem. For example, some advisors struggle with keeping up on managing workflow after the initial factfinding meeting. When does the dictation of case notes get done? Who gets the file next? When is the next follow-up meeting to discuss the analysis and recommendations with your team? Do any investment wholesalers or specialists need to be brought into the picture? 

Inevitably, may advisors I have coached over the years are terrible at case management. I have seen them time and time again running proposals and making shoddy recommendation pages at the last minute and rushing out the door to get to their presentation meeting with the client. Hint -- this is probably not a good strategy if you want to gain new clients and certainly not the careful planning and consideration the client deserves.

Because each client's situation is unique, it is difficult to have and implement a cookie-cutter approach to case management.  But, anytime there is a problem in your business, you can create a written process to manage the problem in the future. When creating written processes, make sure they are repeatable and universal, but it is also important to make them adaptable. A process that is too specific will result in the cookie-cutter approach mentioned above, so give yourself some room to customize the process for each particular client. 

In the case management scenario, I might recommend creating a documented process like the one below.

After the initial factfinding meeting with the client:

1. Immediately following the meeting, dictate clear case notes including
• The client's name
• Date seen
• First meeting, second meeting, presentation, etc
• Summarize the client's goals and objectives
• Any small details that are important to note (hobbies, interests, etc)
• Date of next meeting
• Staff responsibilities (input into CRM, who is responsible for creating the analysis, presentation pages, etc)
• Set date for internal review prior to next meeting with the client
2. Upon returning to the office
• Send the client a follow-up e-mail or letter summarizing their goals and objectives as well as setting an agenda for the next meeting or requesting additional documents not provided at initial meeting
• Connect with the client on social media, if appropriate
• Block off time in calendar for internal review meeting and time for advisor's responsibilities as it pertains to the client
• Distribute client file to appropriate staff members to begin case prep

What processes do you have in place for your practice? What processes don't you have in place that you need to implement? There can and should be a process for every step of the client experience, as well as processes to manage internal workflow. Having these processes are key to delivering a consistent experience for your clients and avoiding last-minute headaches for you and your staff.

So, whenever you have a problem, make it a process and it won't be a problem anymore.

Want more strategies and tips on how to maximize profitability and deliver a memorable experience for clients? Check out Game Changers: 7 Things Every Financial Advisor Needs to Know on Amazon or iTunes today.