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.