The #1 thing affluent clients want from their Advisor is a high ECQ (Empathy & Competence Quotient). Do you have it?
Before launching my consulting and practice management coaching business, I served as a Director/Market Executive with Merrill Lynch, where I had responsibility of leading Financial Advisors in one of our Southeastern markets. A couple of times a year I would take groups of twelve or so Advisors on an “EC field trip” to visit one of the top Advisors in our firm, Jeff Erdmann.
Jeff grew up in modest surroundings, attending Ohio Wesleyan University where he earned his bachelor’s degree in business and economics. No Ivy league pedigree and no advanced degrees for Jeff. He’s a pretty normal guy with a wife and three kids. But he does have a couple of things most Advisors don’t:
- $5.5 billion in client assets under management, and
- Dyslexia – something he shares in common with my sixteen year old son, Richard Branson, Albert Einstein, and Agatha Christie, just to name a few.
He also has two more things that many Advisors lack:
- Empathy, and
- Competence
The affluent want what Jeff has – a high ECQ.
My goal for these field trips was simple – to expose my Advisors to Jeff and his approach to client relationships in hopes each of them would catch the same vision Erdmann caught early in his career.
Jeff started with Merrill Lynch in 1985 as an Account Executive, the fancy term for “stock broker” back in the day. He quickly realized that people with money didn’t want a stock broker, they wanted a professional who could help them manage all aspects of their financial lives, and then some. Jeff realized he needed to become a concierge for his clients.
Near the end of the day of my first Erdmann EC field trip, I asked Jeff a question that I knew was on the minds of many of the Advisors present: “Jeff, we’ve heard you talk about the clients you serve and the large sums of money they have – mostly with no fewer than $25 million each under your care. The people here in this room manage assets for people with $400K…$700K….and $1 million…clients like the ones you started with twenty-five years ago. What’s the difference between your clients and the clients of these Advisors here in this room?”
Without skipping a beat, Jeff smiled and said, “Nothing.” My client woke up this morning with a car that wouldn’t start – perhaps a Ferrari. Your clients woke up with a car they couldn’t start – perhaps it was a Ford. My client has a son in rehab and a chronic illness that will only give her four more good years. So does yours.”
He went on to say that ultra high net worth clients have the same needs, wants, desires, and dreams that every person on this planet longs for. “You must recognize the basics that all humans want and combine that with behavioral finance and solid financial solutions,” he added.
Consultant Richard Weylman articulates well the things Jeff Erdmann is talking about. Clients want warmth, friendliness, personal interest, undivided attention, and responsiveness (see ThinkAdvisor article). These are characteristics of empathy.
Isn’t that what we all want regardless of how much money we have? Isn’t that what we want from all the professionals we deal with? My doctor is my friend. My CPA is my friend. My lawyer is my friend. I do business with them because they know me and they know their stuff – they’re extremely competent. They have great ECQs.
Pick the market you want to go after and recognize the fact that the people you seek to serve have the same wants and needs as you. They’re looking for someone who is competent professionally, and they want a friend who listens, cares, and responds to their needs. They want someone who has a good ECQ – someone with heart and skill.
Renowned author and psychologist Daniel Goleman (of Emotional Intelligence fame), said it well: “A prerequisite to empathy is simply paying attention to the person in pain.” Another great teacher once said, “Do unto others as you would have them do unto you.” It’s the #1 thing affluent clients want. Know your stuff and lead with your heart!
Take your advisory practice and do likewise!
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Bill Edmonds is an “Outside-Insighter” (an Executive Coach and Consultant), who works with market place leaders to help them reach their full potential in the areas of organizational and personal development. A former Financial Advisor and Market Leader, Bill spent 24 years with Merrill Lynch until his retirement in 2014, where he led a $100+ million per year revenue wealth management business unit as a Director with the firm.
