In the fast-paced world of financial advising, the ability to truly listen is often overlooked. Randy Carver, a seasoned financial advisor in Ohio, discovered the transformative power of empathetic listening after a life-altering crash.
With the initial struggle, Carver’s commitment to understanding his clients on a deeper level led to a flourishing practice. This article explores the underrated art of listening in the financial advisory realm, highlighting insights from industry leaders and offering practical tips to enhance this crucial skill.
Impact of Active Listening
After surviving a crash that left him physically impaired, Randy Carver returned to his financial advising practice with a new perspective. Forced to communicate through a voice amplifier, Carver mastered the art of listening.
He paid close attention to clients’ tones, nuanced words, and emotional cues, going beyond surface-level conversations to understand their money scripts and concerns. This marked the beginning of what industry leaders term as empathetic, active, or meaningful listening.
Michael Kitces, a respected trainer and author in the financial industry, emphasizes the paramount importance of active listening. He asserts that clients won’t truly trust advisors until they feel heard and understood.
Kitces encourages advisors to invest in building their active listening and empathy skills, considering them foundational for success in verbal, written, motivational, and public relations aspects of the business.
Being Truly “Heard”
Advisors often face the challenge of prioritizing their expertise, services, and solutions over listening to clients. Daniel Finely, president of Advisor Solutions, conducts active listening workshops for advisors, guiding them through role-playing sessions to shift from one-way conversations to rich dialogues.
The emphasis is on rephrasing clients’ words, observing language nuances, and empathizing with their emotions. Through these sessions, it becomes evident that clients feel most connected when advisors genuinely listen.
Client Meetings
Experts suggest approaching client meetings as conversations without preconceived notions about problems or solutions. Advisors should step into clients’ shoes, tuning into their wavelength and listening from their frame of reference.
Core issues and hidden concerns should be explored, with clarifying questions and key points repeated back. Recommendations should only be introduced once the conversation is complete, ensuring a natural fit for proposed solutions.
Avoiding Pitfalls
While the benefits of empathetic listening are clear, pitfalls exist. Advisors must avoid insincere listening, resist the urge to think ahead, stay focused without distractions, and refrain from dominating discussions. Biases and prejudices must be set aside to foster genuine connections with clients.
William Ury, a senior fellow at the Harvard Negotiation Project, emphasizes that listening is the golden key to human relationships. In a TED Talk, Ury highlights the need for genuine listening, which goes beyond words to understand underlying emotions, feelings, and needs.
Empathetic Listening
The value of empathetic listening extends beyond financial meetings and negotiations. In a world dominated by texts, tweets, and constant disruptions, deficient listening is becoming epidemic. Ury notes that empathic listening is employed by successful negotiators globally, emphasizing its role in building trust.
As for Randy Carver, his commitment to listening has led to a thriving practice. Carver Financial Services now manages over $1 billion in assets for 2,500 families. His voice, once amplified, now resonates on major media outlets. The key to his success remains a simple promise: to listen.
