Understanding and nurturing client motivation can foster stronger relationships, better financial outcomes, and a more rewarding experience for both the financial planner and the client. By tapping into a client’s intrinsic motivations, you can create personalized plans that resonate with their values and goals, increasing the likelihood of successful implementation and long-term commitment.

In our recent webinar, “Driving Client Motivation Through Accountability Strategies,” we discussed the importance of motivating clients to reach financial goals by building trust and being an accountability partner. You can preview a few of the session’s highlights here or access the full webinar.

What Is Motivation and Why Does It Matter?

Motivation is the driving force that gives us purpose or direction in our behavior, either consciously or unconsciously in the face of challenges such as impulsiveness,¹ stress, and anxiety,² as well as emotions.³ In the context of financial planning, motivation plays a crucial role in helping clients save more, spend less, and stay committed to their long-term financial objectives.

As financial professionals, we should care about client motivation. As we pay more attention to our client’s goals, so will our clients. Overlooking client motivation can have severe consequences for financial planners. It can lead to:

• A loss of credibility and reputation
• Reduced client retention
• Neglect of duty of care
• A decline in business performance
• Missed opportunities for professional fulfillment

When clients lack motivation, they may struggle to adhere to their financial plans, leading to suboptimal results and potential dissatisfaction with the advisor’s services.

Best Outcomes: Advisors Using Client Portal and Psychology

Our recent study focused on the combined effects of financial psychology and technology on client outcomes.⁴ We surveyed over 500 financial professionals and a thousand clients on the topic of technology and financial psychology.

Client outcomes are better when financial professionals are both technologically and psychologically forward in their approach. The research shows that client motivation more than doubles with the use of a client portal and an understanding of financial psychology.

Understand Client Values and Goals

As financial advisors, it is crucial to understand our clients’ values and goals to provide personalized and meaningful financial planning services. Values serve as the foundation for our clients’ decision-making processes and shape their priorities in life. By uncovering these deeply rooted beliefs and principles, we can better align their financial goals with what truly matters to them.

There are various techniques that advisors can employ to discover their clients’ values. One effective approach is using value-sorting exercises, where clients rank a list of values in order of importance. This process encourages self-reflection and helps clients articulate their priorities. Another technique is engaging in open-ended conversations, allowing clients to share their life experiences, aspirations, and what truly matters to them.

Once values are identified, advisors can work collaboratively with clients to establish financial goals that align with those values.

Build Different Types of Trust with Clients

Trust is the foundation of a strong advisor-client relationship. Client trust is defined as the belief that the advisor can be relied upon to have the client’s best interests in mind for the long haul. Trust consists of two key components:

• Credibility trust: This refers to the client’s trust in the advisor’s technical competence and expertise in financial planning.
• Benevolent trust: This is the confidence that the advisor will act in the client’s best interest, prioritizing their needs above all else.

It is important for financial planners to build trust that fosters relational and technical attributes, as both are necessary for a robust advisor-client relationship.

Make Client Discovery Ongoing

Financial professionals who want to motivate clients to hold them accountable must build from a solid base of trust. When you start to meet with clients going forward, start to think of each meeting with them as a partial discovery meeting. Ask questions such as, “What’s been going on with you since we’ve last met?” and “Has anything changed?”

Communication Is Key

Financial planning is a highly personal and sensitive matter. Clients are more likely to trust planners who can empathize with their situations, understand their emotions, respond appropriately, utilize effective communication, and give personalization to their plans. There are two easy ways to communicate more effectively:⁵

• Open-ended questions: Ask for elaboration and avoid “yes and no” responses. Explore pros and cons and past and future events.
• Practice reflection: Verify and clarify what the client has said.

Recognize Attributes of a Trusting Relationship

As you build trust, you may notice signs the connection is strengthening. As you see the relationship evolving, think of the attributes of a trusted relationship as coming in two different types: relational attributes, or trust built through interactions, and technical attributes built through competency:⁶

• Relational attributes include vulnerability, authenticity, two-way communication, co-learning, and empathy-driven exchanges.
• Technical attributes include frequent interactions, responsiveness, demonstration of expertise, and achievement of quick wins.

It is important for financial planners to build trust that fosters relational and technical attributes, as both are necessary for a robust advisor-client relationship.

Motivating Through Accountability

Accountability is the key to driving client motivation and helping them achieve their financial goals. As a financial advisor, you can serve as an accountability partner for your clients by leveraging technology and setting achievable goals with clear action steps.

One powerful tool is the client portal within your financial planning software. By granting your clients access to their own secure portal, they can easily view their financial plan, goals, and progress updates. Encourage clients to regularly check their portal to stay engaged with their plan. Within the portal, you can also assign tasks and set due dates to keep clients on track.

The Importance of Goal Setting in Accountability

Setting achievable goals is crucial for maintaining motivation through accountability. Work with your clients to define and write out specific, measurable, attainable, relevant, and time-bound (SMART) goals. The research tells us that just the act of having clients write goals down has a direct impact on the chances for a positive effect on client behavior toward those goals.⁷

As goals are set, input them directly into your financial planning system to track progress over time. Schedule regular check-ins with your clients to review their progress and adjust as needed. During these meetings, have an open discussion about any challenges or roadblocks they may be facing, and collaboratively develop strategies to overcome them.

By leveraging technology, setting achievable goals, and consistently tracking progress, you can foster a sense of accountability that keeps your clients motivated and on the path toward their desired financial future.

Motivational Interviewing Techniques

Motivational interviewing is a communication approach that helps clients discover their own beliefs and habits around money. The goal is to motivate them to adopt behaviors that align with their best interests, without directly confronting them or giving advice. It’s a collaborative process of exploring the client’s ambivalence and uncertainty and fostering their internal motivation for change.

The core skills of motivational interviewing are represented by the acronym OARS:

• Open-ended Questions: These invite the client to explore and share their story without leading them. Examples: “How can I help you with your financial plan?” or “What concerns you most about your debt?”
• Affirmations: Genuine statements that build the client’s confidence and self-efficacy. For example, “I appreciate your willingness to have this discussion today.”
• Reflective Listening: Paraphrasing what the client said to ensure understanding and make them feel heard. This could sound like, “It seems you’re feeling stressed about your spending habits.”
• Summarizing: “Bouqueting” is the concept of picking a few of the best and most important points to summarize what the client shared, while highlighting any change talk or motivation for improvement. This opens the door for the client to continue exploring change.

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