Ch.2 - Communicating Effectively with Clients Flashcards
What are the four ways an advisor must promote trust?
CARS
- Communicating effectively
- Alleviating concerns
- Responding to the social style
- Structured communication
This is the design of the subject matter and format of the communication.
structuring
What are the three types of structured communication?
CIA
- Counseling
- Interviewing
- Advising
This usually involves the process of asking questions to gather information.
Interviewing
This type of structure communication involves a short meeting, formal setting, no digressions, and uses a question and answer format to gather information.
Interviewing
With this type of interviewing, the advisor controls the pacing and content discussed. The client usually completes a questionnaire.
Directive interview
With this type of interviewing the client controls the pacing, it’s more time-consuming, more in depth, and a wide range of topics are usually discuss.
Non-directive interview
This involves an offer to help someone.
Counseling
This type of communication is less formal and uses discussion, insight, and reflection as a primary method of communication.
Counseling
This type of structured communication takes place over a long period of time.
Counseling
Does counseling include helping with credit card problems?
Yes
This type of structure communication involves giving specific guidance.
Advising
When an investment advisor recommends a certain mutual fund to a client what type of structure communication is this?
Advising
What will create a dependency of the client on the advisor?
Giving too much advice, too early on in the relationship.
What domain of financial planning uses structured communication method advising?
Domain 4: Developing the Recommendation(s)
What are the 4 barriers that can create tension between an advisor and a client?
(FRNT)
- Fear of making a decision or fraud
- Resistant to change
- Negative image of salespeople
- Time constraints
What are the four social styles?
ADEA
Analytical
Driving
Expressive
Amiable
How should you handle someone that is forceful, direct, and wants power?
Driving
You should be efficient and provide details and options. Asking questions to steer the conversation.
How should you handle someone that is outgoing, enthusiastic, and once recognition?
Expressive
You should take time to listen and question them
As an advisor how do you handle someone that is easy-going and supportive?
Amiable
You should cooperate and offer acceptance
How would an advisor handle someone that is analytical, logical, quiet, and wants respect?
Analytical
You should be accurate and have an agenda - structured communication.
Clients are more likely to accept an advisor’s recommendations if the advisor demonstrates an interest in…
the client.
Effective communication involves much more than just explaining products and services. An advisor must develop…
good listening skills.
A client can have resistance towards an advisor that is often expressed…
Overtly or Covertly
The advisor should recognize patterns in the behavior of the client and share these observations in a…
Non-judgmental manner
What is a particularly sensitive topic for clients?
Death or dying
What is the easiest type of resistance one can recognize with a client?
Overt hostility
If a client expresses anger openly, what type of hostility resistance is this?
Overt hostility
This type of hostility generally the most difficult to recognize which includes cynicism and missed appointments.
Covert hostility
What is the best way to deal with the clients anger?
Deal with it directly by focusing on the clients behavior and letting the client interpret it.
What are the four attributes of an effective advisor?
UGAS
- Unconditional positive regard
- Genuineness
- Accurate empathy
- Self-awareness
Definition: An attitude of appreciating the client as a worthwhile person.
Unconditional positive regard
Definition: When an adviser’s sense of the client’s world matches the client’s self-image. This involves listening very carefully.
Accurate empathy
Definition: When an advisor has to be a real person.
Genuineness
Definition: When an advisor should be aware of their own value system, so they will not impose their values on their clients.
Self-awareness
Is listening a form of communication?
Yes
True or false.
People generally assume their communications are understood by others.
True
What leads to the most effective communication when listening to your client?
Paraphrasing
The majority of communication occurs through…
Nonverbal means
What type of listening he will use to interpret nonverbal behaviors?
Active listening
Name the five types of responses.
CCRRS
5 Types of Responses:
- Continuing
- Clarifying
- Restatement-of-content
- Reflection-of-feeling
- Summarization
Definition: When the advisor takes the lead and deviates from the client’s responses to another topic.
Leading responses
What are the four types of leading responses?
RISE
4 Type of Leading Responses:
- Reassuring
- Interpretive
- Suggestive
- Explanatory
Questioning is another type of communication technique. If done incorrectly, how can it affect the advisor/client relationship?
It could put the advisor in the role of the authority figure and the client as a passive subordinate.
What are the six types of questioning used as a type of communication technique?
(OCLWQT)
- Open-ended
- Closed-ended
- Leading
- Why
- Question Bombardment
- True/false or either/or
Why is structuring communication important?
Develops rapport
Puts the client at ease
Offers a sense of direction
What are some sources of resistance from a client?
Death and dying
Marital tensions
Failure to meet their expectations
Physical attending, interpreting non-verbal queues, using various forms of questioning or leading responses are all methods of…
Good communication
What is physical attending?
FLORE
Face the person Lean in Open posture Relaxed Eye contact
