A Client Centered Approach II Flashcards
1
Q
What is the client centred approach to meeting customer needs?
A
- Pre-meeting preparation
- Introduction
- Explore & listen: use open questions during the explore and listen: who, what, where, when, why, how? Can’t be answered with a yes/no. This is better for gathering information. Be sure to listen, and use silence to gain more information.
- Identify and agree the customer’s needs: use closed questions e.g. I understand you need a mortgage. If they answer no, the banker will have to explore and listen to understand what is needed.
- Introduce the product(s) to meet these needs (Whats in it for me): try and relate it to the customer in terms of benefits rather features. A benefit is what a feature can do for an individual that will meet their needs. Use leaflets and illustrations and personalise them by circling relevent things. Tailoring each conversation to the customer one doesn’t get bored with repeating the same sales pitch which can often be detected by the customer.
- Overcome objections (objections can occur at any stage in the process): Let the customer finish talking, show that you are interested in the objection, don’t rush your response. An objection can be real or hidden (one that is made because a customer is uneasy about stating their real objection like they can’t afford it).
- Closing: Try and close when the buyer reaches the “buying plateau” doing it too early or late may result in failure. Look for buying signals to understand when they have reached the buying plateau.
- Ask for referrals: ask if you can contact directly, or let them talk to them first.
- After care: Customer might be experiencing buyers remorse. Call them up or when they’re next in branch ask if everything went according to plan. This demonstrates good customer service and an opportunity to sort out any issues.
2
Q
In the complete client centered approach to meeting customer needs, what pre-meeting prep can one do?
A
Find the customers:
- Address
- Occupation
- Family details (married, single, divorced, dependent children etc.)
- Other family connections with the org & the info one can glean from this
- Products that the customer currently has with the org
- If the customer wants a loan, why they want it - e.g. to repay existing loans
- Whether the customer has declined past offers, and if so, why?
- Potential cross-selling opportunities that may arise
- Info that colleagues can tell about the customer
3
Q
What should you do during the introduction w/a customer?
A
- Greet the customer by name, giving them eye contact
- Smile
- Shake hands with the customer and tell them your name, preferably twice (e.g. my name is Peter, Peter Adams)
- Guide the customer over to the interview room/area
- Maintain an open body posture
- Chat to the customer to build rapport - start to use pre-prepared info on them. Don’t chat if this prep has found that they don’t like chatting
- Ask the customer if they’d like tea/coffee
4
Q
How does one communicate?
Explain.
A
One communicates verbally, and non-verbally.
Non-verbal communication methods:
- Body movement - leaning slightly forward can create interest
- Facial expressions - match the facial expression to the message that’s being communicated
- Eyes - maintain eye-contact w/a customer to maintain the positive relationship created during introduction
- Gestures - aim to have open hand gestures to demonstrate confidence and trustworthiness
- Voice - as the conversation develops, match the tone of voice to the words that one is saying
5
Q
What does active listening comprise of?
A
- Taking notes of what the other person is saying. In a consultative situation, it’s polite to ask for permission to make notes
- Maintain strong, genuine eye-contact with the other person - without staring them out
- Nod as the other person is talking to you. Also putting your head slightly to one side will encourage the other person
- Make encouraging noises, e.g. “I see,” “uh-huh” etc.
- Summarise or paraphrase what the other person has said
6
Q
Why should one view an objection positively?
A
- An objection is a signal of interest from the customer
- When one answers an objection, one is dealing with an area of specific interest to the customer
- Objections can often allow one to move more swiftly to the close
7
Q
Why do objections arise?
A
- The customer may have been told the information they are asking for but it wasn’t taken on board
- The customer may have misunderstood
- It may be a “true objection” - there’s a limiting factor in the product that the customer is not happy about
8
Q
What should one do if faced with a true objection?
A
- Use info gained during the explore and listen to show the customer that whilst there is a limitation to the product, it is compensated for by other benefits
- Choose another product that better meets the customers needs
9
Q
Give examples of involuntary buying signals
A
- Looking more interested - e.g. sitting further forward, nodding more, giving stronger eye contact
- Looking more specifically at any leaflets or illustrations
10
Q
Give examples of voluntary buying signals
A
- Asking pointed questions about the product - e.g. how long before the loan proceeds are credited to the account etc.
- If there’s 2 customers they may talk to one another about how well the product will meet their needs
11
Q
Give examples of closing techniques
A
- Ask for the business: ask the customer if they’d like to go ahead with the product – maintain eye contact and keep silent until the customer replies.
- The narrowing the options close: narrow the options until a product is chosen
- The either/or close: give the customer a choice – but all include closing
- The assumptive close: the close assumes the customer will go ahead and take the product without being asked formerly e.g. print off the form and ask them to sign
- The ‘yes’ close: closed question
- Closing on an objection: e.g. “if I can show you that this issue isn’t the case, will you take this product?”
- The cautionary tale
12
Q
What is the definition of a complaint?
A
An expression of pain, dissatisfaction or resentment. A cause or reason for complaining: a greivance.
13
Q
What are typical complaints?
A
A lack of satisfaction with:
- features of products
- level of service provided
- the person that the customer is dealing with
- the org: e.g. during the financial crises – disliking banks
- the org’s decisions: e.g. refusing a loan request
Complaints can be about soft factors: emotive, or hard factors: e.g. features of the product
14
Q
What procedure does the FCA look for firms to follow when dealing w/a complaint?
A
- Aim to resolve the complaint at the earliest opportunity
- If a firm hasn’t resolved it by the close of business of the next day, the firm should send a written acknowledgement
- When the firm is able to issue a final response to the complainant, it must issue details of its complaints handling procedure along w/info about the Financial Ombudsman Service
- Within 8 weeks of the complaint, the firm must have issued a final response to the complainant
- Record and summary report to the FCA every 6 months
15
Q
What costs may arise from a complaint besides reimbursement/compensation?
A
- Opportunity costs: what income-generating activities foregone by the advisor by having to handle the complaint
-
Financial loss:
- cost of having a centralised department to deal with complaints
- cost of customers taking business elsewhere
- cost of compensation
- Reputational damage
