In a perfect world, all of your clients would follow their financial plans to the letter. But even the most experienced financial professionals will encounter clients who seem resistant to implementing their financial plans.

According to research done by Krpalek, Meredith, and Zivkovic, financial planners who focus on building trust, understanding client motivations, and providing ongoing support are more successful in helping resistant clients implement their financial plans.¹

In this blog, we’ll examine how to leverage these insights by understanding the common barriers to action and incorporating a range of practical strategies for overcoming client resistance into your toolkit.

Understanding Common Barriers to Action

Before addressing client resistance, it’s crucial to understand the potential sources of their resistance. Common barriers to action include clients’ mistrust of financial services, fear of feeling incompetent, misconceptions about financial planning, overconfidence, feeling overwhelmed, external factors and life events, and past experiences with financial services.

One effective means of uncovering sources of resistance is to ask intentional, open-ended questions about your clients’ money values, goals, and past experiences. This is the first step toward building trust between you and your client. It also enables you to proactively address their concerns and create a supportive environment for effective financial planning.

Practical Strategies for Overcoming Resistance

There are a number of tools you can use to provide consistent support and help your clients move from resistance to engagement. Every client is different, so it helps to have a mix of strategies you can tailor to fit their unique needs and preferences.

1. Use Reflective Listening

Reflective listening is a powerful tool in fostering meaningful communication. This technique requires you to actively listen to the client and then reflect the thoughts and feelings you heard back to them. In doing so, you can uncover their true intentions, help them articulate their thoughts more clearly, and pinpoint the root of their resistance.

2. Reframe the Conversation

When a client appears hesitant to tackle the technical details of their financial plan, try redirecting the discussion towards their values and goals. By linking the financial plan to what truly motivates the client, planners can infuse the technical aspects of the plan with deeper meaning, making the plan more engaging and personally relevant.

3. Provide Ongoing Support

Acting as an accountability partner is key to supporting your clients effectively. By conducting regular follow-ups, reviewing progress, and providing motivation, you can help them maintain their focus and momentum.

4. Educate and Empower

Help your clients make confident decisions by giving them the knowledge they need to understand their financial plan. Client education webinars and workshops, one-on-one coaching sessions, downloadable resources, and educational videos are all options to consider.

5. Emphasize Self-determination

Clients who believe they have control over their choices are more inclined to welcome change and actively pursue their financial objectives. By fostering a space where your clients feel empowered and in control of their decisions, you can help guide them toward financial progress.

6. Know When to Step Back

Recognize the importance of timing when guiding clients. Pushing for change before they’re ready can lead to resistance. If you notice hesitation or a lack of motivation it’s important to step back – pressuring too much can damage trust and even strain the advisor-client relationship.

Unlock Client Progress

Helping your clients overcome resistance necessitates patience, adaptability, and a commitment to understanding their unique needs. It will likely be a non-linear journey—your clients’ progress may be gradual and setbacks are to be expected. But by offering unwavering support, you can help them build confidence in their financial decision-making abilities and work towards their goals.

To explore the strategies we discussed here in depth and learn more about the psychology behind client motivation, download our eBook, Motivating Clients to Act: A Guide for Financial Professionals.

Sources:

1. Krpalek, D., Meredith, P., & Zivkovic, S. (2021). Building trust and rapport with resistant clients in financial planning: A qualitative study. Financial Planning Research Journal, 7(1), 5-25.

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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