How to Handle Unexpected Client Questions
As a financial advisor, it’s essential that your clients ask questions. It means they want to engage with you, and they trust your expertise. Every question a client asks is an opportunity to educate them, which is a good thing. When your clients are comfortable enough with you to ask questions, it’s a sign of a healthy advisory relationship.
But what if you get blindsided with unexpected client questions, ones you didn’t see coming? The relationship could turn on how you handle them. If you hesitate, appear uncomfortable, or try to avoid the question, you could find yourself outside the client’s circle of trust, at least for the moment.
However, if you’re prepared to manage these impromptu and uneasy moments with confidence and professionalism, you will reinforce the trust you’ve already built.
Where do unexpected client questions come from?
No matter how much you prepare for client meetings, you’ll inevitably encounter unexpected questions. They often arise because of clients’ changing financial or personal circumstances, new economic or market developments, or news or misinformation they heard from a friend or family member. It could be that a client just needs clarity on a topic they’ve never fully understood.
Examples of unexpected or uncomfortable questions from clients:
- How much money do you make from my investments?
- How much do you personally invest in this strategy?
- Why didn’t you foresee this market downturn?
- I think my spouse is cheating on me. How can I protect my assets?
- I’m considering bankruptcy. What are your thoughts?
Unexpected? Yes. Awkward? Sometimes. But these moments are opportunities to show your expertise, build trust, and reinforce the value you bring to the relationship. Your ability to avoid a ”deer in the headlights” reaction and manage unexpected questions with poise and empathy not only addresses your client’s immediate concerns but also positions you as a reliable and knowledgeable partner in their financial journey.
Techniques for handling unexpected client questions
#1. Stay calm and composed
When faced with an unexpected question, staying calm and maintaining composure is critical. Some client questions, especially if they’re complex or challenging, can easily trigger anxiety or cause you to overreact. Taking a breath and approaching the situation with a level head is crucial. Active listening is essential. By focusing intently on what the client is asking, you can gather your thoughts before responding.
To buy a little time and show that you’re considering the question thoughtfully, use phrases like “That’s a great question” or “Let me take a moment to think that through.” This gives you a few seconds to assess the situation and formulate a more thoughtful response without feeling pressured to answer immediately.
#2. Clarify and reframe the question
Before diving into an answer, make sure you’ve fully understood the question. Clients sometimes phrase their concerns vaguely or in a way that doesn’t align with what they truly need to know. Asking clarifying questions, such as “Could you explain a bit more about what you mean?” or “Are you asking about your current investment strategy or a specific market trend?” ensures that you and your client are on the same page.
Once you clarify the question, you want to reframe it to reflect the client’s underlying concerns. For example, if a client asks, “Is the market going to crash soon?” you might reframe by saying, “It sounds like you’re worried about how market volatility could affect your portfolio in the short term. Let’s explore how your current strategy accounts for that.” This addresses their immediate concern and allows you to pivot the conversation toward a broader discussion of long-term goals.
#3. Leverage the power of empathy
When clients ask unexpected questions, they’re often expressing deeper concerns about their financial future. Responding with empathy helps ease their worries and demonstrates that you genuinely care about their well-being. Phrases like “I understand why this situation might be worrying” or “I can see why you’d want more clarity on that issue” show that you’re addressing the technical aspects of their question and their emotional concerns.
For example, a client says, “I heard on the news that interest rates are rising—should I be worried about my mortgage?” An empathetic response might be, “It’s completely understandable to feel uncertain when there’s so much happening in the news. Let’s take a closer look at your mortgage terms and see how any potential changes might impact you.” This response acknowledges their feelings while guiding the conversation toward a solution.
#4. Use your expertise to educate
Unexpected questions often provide an excellent opportunity to educate your clients. Instead of viewing them as a disruption, look for ways to turn the moment into a learning experience. Breaking down complex topics into simpler terms and using analogies can help your clients grasp challenging concepts more quickly. For example, explaining diversification by comparing it to “not putting all your eggs in one basket” helps clients visualize the importance of spreading risk.
You can also refer to previous discussions to build continuity. If a client is asking about market fluctuations, remind them of an earlier conversation about market cycles and long-term investment strategies. This reinforces the advice you’ve given before and shows consistency in your approach.
#5. Offer to follow up if necessary
It’s perfectly acceptable not to have all the answers on the spot. If a question requires more research or a specialized answer, don’t hesitate to tell the client you’ll follow up. A simple response like, “I want to provide you with the most accurate information, so let me look into that and get back to you,” reassures the client that their concern is being taken seriously.
Effective follow-up communication is key to maintaining trust. Send a brief email recap of the discussion and any additional information or resources or schedule a follow-up meeting to review your findings. This demonstrates diligence and provides another opportunity to engage with the client.
Bottom line
Handling unexpected questions with confidence and composure is an essential skill for financial advisors. Staying calm, clarifying client concerns, responding empathetically, educating when possible, and following up when needed can turn these moments into opportunities to build trust and deepen relationships.
While these situations may seem challenging, they are also invaluable opportunities to demonstrate your expertise and reinforce your role as a trusted advisor. Practice these techniques, and you’ll increase your confidence in managing unexpected client questions while enhancing the overall client experience.
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