Ch 7: Relationship Building

Question 1

What is rapport?

Answer 1

A close and harmonious relationship in which the people or groups understand each other’s feelings or ideas and communicate well

Defined by Oxford University Press, 2022.

Question 2

Why is establishing rapport with a client important?

Answer 2

It influences the first impression.

Question 3

What common approach is flawed when starting a conversation to build rapport?

Answer 3

Discussing frivolous topics, such as the weather.

Question 4

What are the three steps to a successful greeting?

Answer 4

• Making eye contact
• Using positive, open body language
• Taking your time

Question 5

What should you avoid in body language when greeting a client?

Answer 5

Slouching and turning your back on a client.

Question 6

What is a more welcoming greeting than ‘How are you today?’

Answer 6

• What brings you in today?
• How can I help you?

Question 7

What should you do if the client’s name is difficult to pronounce?

Answer 7

Ask them how to pronounce it.

Question 8

True or False: It is respectful to shorten a client’s name for convenience.

Answer 8

False.

Question 9

Who is Tanya Redington?

Answer 9

A financial advisor who will be assisting the client.

Question 10

Fill in the blank: To establish rapport, it is essential that a _______ exists.

Answer 10

relationship

Question 11

What is a key benefit of using the client’s name during the greeting?

Answer 11

Helps break the ice and allows for common ground.

Question 13

What is often emphasized in the financial services industry?

Answer 13

Building strong client relationships

Question 14

What are the potential challenges of treating clients like friends?

Answer 14

Challenges include blurred boundaries, reduced professionalism, and potential conflicts of interest

Question 15

How can finance professionals maintain professionalism while being personable?

Answer 15

By striking a balance between building rapport and maintaining necessary boundaries

Question 16

Fill in the blank: Treating clients more like friends can lead to _______.

Answer 16

[blurred boundaries, reduced professionalism, potential conflicts of interest]

Question 17

True or False: Strong client relationships in finance require a strictly professional distance.

Answer 17

False

Question 18

What is a key factor for finance professionals in client interactions?

Answer 18

Maintaining necessary boundaries

Question 19

What does the F.O.R.D. method stand for?

Answer 19

Friends, Occupation, Recreation, Dreams

The F.O.R.D. method is a communication technique used to build rapport and gather information.

Question 20

How can discussing ‘friends’ help finance professionals?

Answer 20

Gather insights about clients’ social networks and their influence on financial decisions

Understanding a client’s social context can reveal shared financial values and concerns.

Question 21

What insights can be gained from discussing ‘occupation’?

Answer 21

Understanding clients’ income sources, job stability, and career goals

This can help assess financial needs and opportunities for growth.

Question 22

Why is it important to discuss ‘recreation’ with clients?

Answer 22

To learn about clients’ hobbies and interests that affect spending habits

Recreation can indicate lifestyle choices and potential financial commitments.

Question 23

What can be learned from discussing clients’ ‘dreams’?

Answer 23

Clients’ long-term financial goals and aspirations

This helps tailor financial planning strategies to align with clients’ personal visions.

Question 24

Fill in the blank: The F.O.R.D. method is used by finance professionals to ask questions about _______.

Answer 24

Friends, Occupation, Recreation, Dreams

This method guides professionals in building relationships and understanding client needs.

Question 25

True or False: The F.O.R.D. method only focuses on financial topics.

Answer 25

False ## Footnote It encompasses broader aspects of clients' lives to better understand their financial preferences.

Question 26

How does the F.O.R.D. method facilitate client relationships?

Answer 26

By promoting open communication and trust ## Footnote Engaging in personal topics allows finance professionals to connect on a deeper level.

Question 27

What is an essential trait in advising conversations?

Answer 27

Listening ## Footnote Listening is crucial for understanding the client's perspective and situation.

Question 28

Why do people struggle with listening?

Answer 28

It is cognitively difficult and requires concentration ## Footnote People often focus on their own responses rather than fully listening.

Question 29

What is the common tendency in social situations regarding listening?

Answer 29

People listen to respond, not to understand ## Footnote This can lead to poor communication and understanding.

Question 30

What does empathy allow an advisor to do?

Answer 30

Understand and sense the client's emotions and thoughts ## Footnote Empathy helps in tailoring communication to the client's language.

Question 31

How does active listening benefit the advisor?

Answer 31

Allows for tailored follow-up questions and customized solutions ## Footnote Customization shows respect and attentiveness to the client's needs.

Question 32

What role does body language play in active listening?

Answer 32

It provides a richer understanding of the spoken words ## Footnote Observing body language can indicate the client's level of comfort and engagement.

Question 33

What indicates a client may be disengaged during a conversation?

Answer 33

Leaning back, looking at their watch, or looking at the door ## Footnote Such behaviors suggest the client is not fully engaged.

Question 34

What should an advisor do to re-engage a client?

Answer 34

Ask a closed-ended question or confirm understanding by paraphrasing ## Footnote This helps to clarify and refocus the conversation.

Question 35

True or False: Listening is not important in personal relationships.

Answer 35

False ## Footnote While not essential, listening is a valued trait in personal relationships.

Question 36

Fill in the blank: Active listening involves observing and reading _______.

Answer 36

body language ## Footnote Nonverbal communication can enhance understanding in conversations.

Question 37

What psychological need does listening honor?

Answer 37

The need to be heard ## Footnote Listening demonstrates respect and curiosity about the speaker.

Question 38

What is the effect of using the client's 'language' in communication?

Answer 38

It is more persuasive ## Footnote Tailoring communication to the client's perspective enhances effectiveness.

Question 39

What should an advisor periodically check during a conversation?

Answer 39

The client's time and engagement level ## Footnote Ensuring the client can continue the conversation is essential for effective advising.

Question 40

What is empathy in the context of client relations?

Answer 40

The ability to understand and share the feelings of another person ## Footnote Empathy is crucial for building trust and rapport with clients.

Question 41

List three ways an advisor can show empathy.

Answer 41

* Active listening * Acknowledging emotions * Providing support and reassurance ## Footnote These actions help clients feel understood and valued.

Question 42

True or False: Empathy is only about feeling sorry for a client.

Answer 42

False ## Footnote Empathy involves understanding and connecting with a client's emotions, not just pity.

Question 43

Fill in the blank: An advisor can demonstrate empathy by _______ to clients' concerns.

Answer 43

[listening actively] ## Footnote Active listening involves fully concentrating, understanding, responding, and remembering what the client says.

Question 44

What role does body language play in showing empathy?

Answer 44

Non-verbal cues can reinforce understanding and support ## Footnote Positive body language, such as nodding and maintaining eye contact, can enhance the empathetic connection.

Question 45

Explain how acknowledging emotions contributes to empathy.

Answer 45

It validates the client's feelings and fosters a supportive environment ## Footnote Acknowledgment can help clients feel heard and understood.

Question 46

What is the impact of empathy on client relationships?

Answer 46

It leads to increased trust and loyalty ## Footnote Clients are more likely to remain engaged and satisfied when they feel understood.

Question 47

List two barriers to showing empathy in client interactions.

Answer 47

* Personal biases * Stress or distractions ## Footnote Advisors need to be aware of these barriers to effectively connect with clients.

Question 48

True or False: Showing empathy requires advisors to share their own experiences.

Answer 48

False ## Footnote While sharing experiences can sometimes help, it is not a requirement for demonstrating empathy.

Question 49

What is an effective way to respond when a client expresses distress?

Answer 49

Offer supportive words and ask how you can help ## Footnote This approach shows that the advisor cares and is willing to assist.

Question 50

Fill in the blank: Empathy helps to create a _______ between the advisor and the client.

Answer 50

[strong connection] ## Footnote A strong connection is essential for effective communication and relationship building.

Question 51

What enhances the questioning and active listening processes for an advisor?

Answer 51

Momentarily abandoning their own opinions and assumptions ## Footnote This approach allows for more effective engagement with the client.

Question 52

Why is it important for an advisor to avoid jumping to conclusions?

Answer 52

Assuming the solution too soon can hinder effective communication ## Footnote Quick assumptions can lead to misunderstandings.

Question 53

What should an advisor do when a client makes a statement?

Answer 53

Confirm, clarify, and/or get a deeper understanding ## Footnote This ensures the advisor fully comprehends the client's needs.

Question 54

In sales conversations, how should an advisor respond to a client's answers?

Answer 54

With clarifying questions or by restating/paraphrasing what is said ## Footnote This active listening technique fosters better communication.

Question 55

What is the benefit of clarifying or restating/paraphrasing during a sales conversation?

Answer 55

It ensures clear communication and mutual understanding ## Footnote This practice helps avoid misinterpretations.