There is a simple rule we advocate to help people avoid coming across as being pushy sales people: Don't present a solution (product) to a problem (need) that is not been acknowledged by the client. Generally speaking most people dislike having someone try to sell them a product that they don't need. By asking good questions you can get a client to acknowledge that they have a need which clears the path for you to comfortably present a solution.
Problem questions
A few things to remember about problem questions:
* It's a question that uncovers problems, challenges, dissatisfaction's, concerns, worries clients may have.
* A good problem question is specific in nature.
* Based on how a client answers, they will definitively let you know whether they have a need or not.
Examples:
1. "Do you have RSPs?" - this is not a problem question because the answer doesn't tell you if they have a problem or not. Clients buy solutions to problems, not products. Just because someone doesn't have RSPs doesn't mean they are worried about retirement. Additionally, the client may answer this question with a "yes" but that still doesn't tell you whether or not they feel what they have saved will be enough money to retire when they want.
2. "How are you feeling about retirement?" - this is better as the answer may tell you that the client is feeling unprepared for retirement, but the question is too vague to be a great problem question. They could easily misunderstand the question ... that they are being asked about how they feel about the act of retiring (i.e. "I feel good about retiring ... I can't wait!"), whereas what we should be trying to find out is if they are worried about having enough money to retire. That is something we can help with potentially.
3. "Do you feel you will have enough money set aside to retire when you want to do what you want?" - Now we are getting somewhere! The answer to this question will definitely let you know whether the client has a need or not.
* It's good to know the varying degrees of specificity of problem questions because you can ask multiple problem questions starting with the easier (more vague) questions and get more and more specific as the conversation progresses. It really depends on how the client responds.
How to Develop Problem Questions
In order to come up with good problem questions start by asking yourself 2 questions:
1. "If someone had this product or service at another financial institution, and decided to switch, what would compel them to do so?"
2. "What would have to be going on in someone's life - what problem would they have to have - for them to come in and ask for this product?"
More examples:
"If someone had their investments at another financial institution, and decided to switch, what would compel them to do so?"
a) Not happy with the return on their investment
b) Not confident in the overall financial plan
c) Tired of the constant turnover of advisers
d) What else can you think of?
"What would have to be going on in someone's life; what problem would they have to have, for them to come in and ask your FI for investment or retirement planning advice?"
a) Worried about their ability to retire when they want, to do what they want
b) Not happy with the prospect of having to work until they are 75 years old
Here's the easy part: the answers to these questions serve as the basis for your problem questions.
* For example: if you suspect that some people are not feeling overly confident in the financial plan they have, and you want to find out if the client you are talking to is that person, you would simply ask them, "How confident are you with your retirement plan?"
* Another example: if you are wondering if the person you are talking to is happy with the return they are getting on their investments, and you want to find out, you would simply ask them, "Are you happy with the return you are getting on your investments?"
* Easy right!?
The beauty of this is that most sales people can see a potential problem or a need the client is having. The challenge we see is that they rush in too quickly to talk about a solution before the client has acknowledged, or is fully associated, with the problem or circumstance they are in. Coming up with problem questions is really simple when you think about it. Just ask the client if they have the problem that the product you want to talk to them about, solves.
If I want to talk to you about our mortgage campaign: "How are feeling about your mortgage?"
If I want to talk to you about our credit card: "How do you like the credit card you are currently using?"
You get the idea. Become insanely curious about how your clients feel about what they are doing now (relative to their financial services of course) and you will discover that many of them that you thought were not "opportunities", are not nearly as satisfied as you thought. And the only reason they never brought the subject up was because no one ever asked them for their opinion.