The pivotal role of emotions during uncertain times

Emotions can be messy. In the midst of difficulty, it may be tempting to fall back on numbers and spreadsheets when talking to clients precisely to avoid bringing emotions into play. However, in our experience, in challenging times, it’s more important than ever to let emotions into the conversation.

We’re all facing an uncertain path forward as COVID-19 and social injustice concerns continue to evolve. To address tough situations, we’ve found that the highest-performing financial professionals meet their clients where they are, allowing client emotions as well as their particular financial and life circumstances to guide conversations rather than focusing on general market conditions or short-term reactions to the news.

In our experience, in any difficult situation, if you're talking to a client, probably the least effective thing you can begin with is talking about the market or the latest move from the Federal Reserve (Fed). That's what we all are tempted to do because that's what we do with one another within the financial services profession. However, when clients are fearful or anxious, it’s almost as if they can’t actually hear you. Our team finds itself returning to this theme now more than ever as we provide financial professionals with tools designed to help you connect with clients more deeply, more quickly, and more effectively.

We at Invesco Global Consulting have spent countless hours working on optimizing communication methods for different scenarios. Here, we’ll focus on two strategies that we have found can make a significant difference during a crisis. There are two easy acronyms we suggest to financial professionals: AAA and M.A.I.N.

The AAA strategy

The AAA or “Triple A” acronym is one we have collaborated on with certified business coach and clinical psychologist Dr. Tim Ursiny. Triple A — a method of responding to clients — stands for:

• Acknowledge: Reflect what clients are saying. Give them a chance to vent — to express themselves — an opportunity that clients don’t get too often. Doing this may help normalize a client’s concerns, potentially minimizing the control their worries exert.
• Agree: Find some aspect, even if it’s a small part of what your client has said, with which you can agree. Think of it as the 1/100 rule; identify 1% of what your client has said and agree with it 100%. It’s important that you genuinely agree with it; this will help create a connection. It’s hard to be upset with someone who agrees with you!
• Add: This is where you provide additional information (historical context, analysis, observations, and facts) in an effort to help alleviate their concerns. From using a simple framework to explain complicated ideas to finding cultural references that your client responds to, this also, in our experience, helps to build a dialogue based on personal connection.

The M.A.I.N. approach

You can also use the M.A.I.N. approach in an effort to showcase your value to clients. This strategy employs four key words — Monitor, Adjust, Inform, and Navigate — to help communicate the value financial professionals aim to provide to clients. Particularly during times of uncertainty, we have found that these words can be useful tools for financial professionals to help communicate that they are attuned to what’s happening in their clients' worlds and stand ready to correct course as needed. We have seen that financial professionals can easily and organically insert these research-based words into client conversations.

For example:

“Mary, I’m glad you called today, and I want you to know that we’ve been monitoring your portfolio throughout these changing circumstances. We may recommend adjusting some of your holdings. We’ll certainly keep you informed of that. In the meantime, I’m here, as always, to help you navigate this difficulty.”

As Co-Head of Invesco Global Consulting Scott West says, “Effective communications can be tricky, and even the most talented financial professionals can stray from best practices. That is exactly why we focus on acronyms like M.A.I.N that are easy to remember, client-focused, and offer a clear and concise articulation of services and value provided.”

The research-based techniques we’ve outlined have proven effective in helping financial professionals communicate their service, value, and client support, even in challenging times. We firmly believe that communicating in this way with clients may lead to better results for both parties. However, that’s only part of the equation. Perhaps most importantly, when talking to clients — at the risk of sounding preachy — remember to listen. As in all areas of life, there’s often nothing we can say that’s more valuable or generates more trust than truly listening.