The Power of Predisposition, by Duncan MacPherson

Predisposition, in essence, means that the person has been influenced, in advance of being asked, to take action and that they are self-motivated. When it comes to stimulating referrals and uncovering assets or introducing new services using line extension campaigns, there are a couple of points of which you should be mindful.

Never Seem Needy

Clients are looking out for their best interests, not yours. They will only refer a friend because they feel they would be doing that friend a disservice by not doing so, not because they want to help you build your business. For example, they will only buy a critical illness policy because of its personal benefit, not because they want to do you a favour. This may seem like an obvious statement, but I’ve seen far too many referral and line extension campaigns in which advisors appear needy or in which they radiate a personal sense of entitlement and expectation for referrals and new business.

Before you roll out any campaign, scrutinize it thoroughly to ensure that it conveys clearly stated benefits rather than transparent sales pitches. It may seem like a silly analogy, but when you buy a power drill you are actually buying holes. What are you selling to your clients, the concept or the benefit?

When you introduce a new product or service to a client, they will either connect with the offer as a "me too" or dismiss it as a "so what?" If you send a letter to a client explaining that you now offer a full line of insurance products and that they should call you to discuss their needs, where is the benefit? If you instead remind them that there are several pieces to the financial puzzle and that it is your job to make sure all of those pieces are in place to create a completely sound and customized financial plan, you radiate strength.

When it comes to referrals, you are already aware that ongoing imprinting that uses gentle reminders is the most effective approach over the long haul. Start the imprinting process with each client right away and pick your spots as the relationship unfolds. For example, when you send out a thank-you card to a new client, don’t say, "Thanks for the business." You are talking about your benefits, not those of the client. Instead, say: "Thanks for the opportunity to work with you. As I mentioned, the most fulfilling thing I do is help people set and achieve their financial goals. I’m looking forward to a great relationship." That subtle difference sets the stage for future reminders to your clients for referrals to their friends because you can help them set and achieve their goals as well.

Use Social Proof

Few techniques have the persuasive impact of social proof. People are more inclined to take action if they know that other people are doing the same thing in a similar situation. A rookie lawyer will book all of her appointments with prospective clients on a Wednesday afternoon to give the appearance that she is successful. The owner of a highway motel will buy four used cars and park them facing the highway for the same reason. While I’m not endorsing these specific tactics, they illustrate my point.

That said, it’s a good idea to buffer your discussion about your full array of services by using other clients as the focal point. Better yet, since facts tell and stories sell, share with the client an episode involving another client who was or is in a similar situation. For example:

"The other day, I had a conversation with a client of mine who owns a general insurance firm. In a friendly way, I teased him about the fact that my home and auto insurance rates had just increased. He replied by telling me that my home and car are some of my most valuable assets and that it’s not what good insurance costs but rather what it’s worth. ‘After all,’ he said, ‘it’s better to have good insurance and not need it rather than need good insurance and not have it.’

"I couldn’t help but chuckle because six months earlier, we had had a conversation about another form of insurance – disability and critical illness. The conversation took place as a result of two questions I asked him: What was his biggest expense and what was his most valuable asset? He responded by telling me that his biggest expense was his mortgage and his greatest asset was his business. I had to correct him. His greatest expense was his taxes and a solid tax strategy had to be put into place. I went on to tell him that his greatest asset was his ability to go to work and pay for his other assets while increasing the value of his business. Take away that ability and everything else would be in jeopardy."

Be mindful of the stage of readiness

You don’t know when your favourite clients are going to have a conversation with their acquaintances about money, but the time will eventually come. You also don’t know exactly when your clients’ situations will change and thus heighten their desire and motivation to discuss their other needs but, again, it is just a matter of time. Committing to a long-term campaign of methodically building predisposition will ensure that you are always the go-to person for your clients when the opportunity presents itself.

Add postscripts to letters with "by-the-way" references to referrals and other services. Showcase products in your newsletters. If possible, consider a commercial on-hold program for your telephone system. Have an agenda of questions that will uncover needs during review meetings and during telephone conversations. Every imprint matters and none of them go unnoticed. Each imprint will trigger moments of recognition in your clients’ minds that will eventually compound and achieve the desired results.

Those who patiently take the high road and never sell out by coming on too strongly will stand head and shoulders above the rest and will build durable, valuable businesses in the process.