The need for financial professionals to ask prospects and clients questions has a long history in the industry. In earlier days, questions simply facilitated the process of gathering information in order to open accounts and recommend the appropriate products to be sold. However, as the industry evolved from being primarily transaction-based to relationship-based, it has become increasingly important for advicers to become less sales-oriented and more focused on how they can better develop deep, long-term connections with their clients. One of the best ways to accomplish that goal is not to ask better questions, but to also ask engaging follow-up questions that build trust and rapport with clients. The key, then, is in learning a conversational skillset that is natural and keeps the focus on the client.
Fortunately, there is framework that advicers can use to ask authentic and impactful follow-up questions called the Iceberg Method. This technique utilizes a 3-question format that uncovers what matters most to a client and helps develop (and deepen) the client/advicer relationship. It features a succession of questions that first seeks to uncover key facts, then explores the meaning and situational context around those facts, and, finally, offers insight into the client's feelings and values around their particular situation.
Accordingly, the process starts with fact-finding questions, which ideally should be open-ended questions framed as statements (e.g., telling the client or prospect to share what prompted them to reach out), since people can sometimes perceive fact-finding questions such as "What have you done so far to save for retirement?" as judgmental. From there, advicers can dig deeper into the iceberg by asking follow-up questions that are designed to discover the context around information gleaned from the fact-finding stage. These 'situation' questions (which, again, are also more effective when presented in the command/statement form) help the client tell the story around their facts and share why something is important to them.
After understanding the facts and gaining additional situational context, advicers can finally explore the feelings that the client has around the subject that's under discussion by asking follow-up questions about their emotions. Framing these questions properly is essential. Introducing these questions with phrases such as, "It seems that," or, "I've noticed that" or "I'm interested in hearing more about" and then asking how they feel about the accompanying observations is an effective way to invite clients to reveal their honest feelings that drive and inspire them to commit to their financial goals (and implement their advicer's recommendations!).
Ultimately, the key point is that advicers who can learn how to communicate more effectively will not only differentiate themselves in the marketplace, but (importantly) will also do a better job of helping their clients achieve their goals by fostering emotional buy-in to their financial plan. Implementing the 3-stage Iceberg Method for follow-up questions can help clients feel heard and connected, which can deepen and enrich the client/advicer bond, helping engender a trusting and long relationship!
