Behavioral Finance

Finance Clients Hold Back Info

It’s estimated that within three years of her husband’s death, 70% of widows change financial advisors. And with 60 being the average age of widowhood for women, that 70% change rate suggests that many an advisor hasn’t been able to solidify a good professional bond with clients who could have stayed on-board for even decades to come.  Indeed, poor interactions have been found to be a primary driver of client dissatisfaction with advisors in general. How to improve on that situation, especially for the high-end clients for whom a robo-advisor approach won’t be appropriate or necessary? Financial therapy approaches recognize the importance of emotions, but settle for vague, often incomplete verbal input from clients. Sensory Logic has developed a 17-question format of questions that advisors can use or arrange for clients to response to for facial coding purposes, as a video selfie. Verbal debriefs and easy-to-follow mini reports provide guidance for how to ensure a better on-boarding process for new clients and ways to protect and grow the business relationship thanks to getting a better handle on who the client is and their actual versus stated risk-tolerance, among other issues to be covered.