If there's any truth to the rumors, self-described "Godfather of Influence" Robert Cialdini may have helped coach Hillary Clinton on how to debate Donald Trump Monday night.
Be that as it may, in his new book, "Pre-Suasion: A Revolutionary Way to Influence and Persuade" (Simon & Schuster), the social psychologist provides plenty of techniques financial advisors can use to move clients to their way of thinking.
In an interview with ThinkAdvisor three days before the debate, Cialdini, professor emeritus of psychology and marketing at Arizona State University, jousts about his rumored work with the candidates for president. But he's forthcoming regarding what FAs can learn from his potent techniques of influence and persuasion.
Famed behavioral finance economist Richard Thaler calls Cialdindi "the master of influence" by reason of his first book, "Influence," written more than 30 years ago. The now-classic was a New York Times bestseller that sold more than 3 million copies in 33 languages. It discloses six "weapons of influence" for ethically directing people into saying "yes" to a request, proposal or recommendation.
"Pre-Suasion's" focus is how to pave the way by steering a person's mindset into saying "yes" before delivering the strength of your message so they'll be receptive to it.
Following are highlights from ThinkAdvisor's interview with Cialdini.
ThinkAdvisor: Stories have been written that you've been helping to coach Hillary Clinton or Donald Trump. Any of that true? If you were to give either one advice for the debate, what would it be?
Robert Cialdini: I'm not going to be able to talk about that just yet. It's my policy not to comment on political campaigns while a campaign is going on. The passions are so strong that I just don't speak about them during the campaign.
TA: I wonder if Trump and/or Clinton have read your book, "Influence?"
Cialdini: I think they did.
TA: This election is pivoting on questions of truthfulness. Polls show that most people think neither Trump nor Clinton is trustworthy.
Cialdini: The research I've seen shows that, in general, the highest, most positively evaluated trait in people–more than intelligence–is trustworthiness. That certainly applies to our politicians.
TA: Establishing trust is critical for financial advisors too. Typically, trust must be earned. But you write of ways to establish trust instantly.
Cialdini: You do it by mentioning a weakness or being transparent about any conflicts that might apply. As soon as you do that, a wall of distrust comes down. Do it upfront. Don't wait till the end [of a presentation].
TA: What's a good example?
Cialdini: Warren Buffett uses this strategy in his Berkshire Hathaway shareholder reports. On the first page, he mentions something he did wrong the previous year. I own stock in the company, and when I read that, I think, "This guy is being straight with us." Next he talks about the strengths of the previous year. [Thus], he's arranged for me to believe this information more fully because it's coming from a manifestly trustworthy source.
TA: What weakness might a financial advisor mention to a client?
Cialdini: Perhaps a drawback to a strategy they're recommending, like lengthy time to accomplish a particular goal. Then they would say, "But here are the strengths to doing this."
TA: You write that "successful openers pre-suasively channel attention only to those concepts that are associated favorably" with their goal. Please apply that to FAs.
Cialdini: Very often, we ask clients for their opinion about our blueprint for their wealth. That's a mistake: When we ask for an opinion, people psychologically take a half-step back from us and go inside themselves. They separate from us. Instead, we should ask for their advice on our plan. That way, they take a half-step toward us.
TA: But won't the client say, "Gosh, I don't know. You're the advisor."
Cialdini: Yes. And maybe they'll see themselves in a partnership with you. That's what we want. We want them to put themselves in a togetherness; [a] collaborative frame of mind. Research shows that they'll become more supportive of the plan before they encounter it because they feel more a part of it.
TA: You say that, more than being likable, people who sell need to show that they like the person they're selling to.
Cialdini: The Number One rule of sales is to like the customer or client. As soon as people recognize that, they breathe with relief because they know they'll be treated well inside a relationship where they're liked–because we make sure we protect the flanks of people we like.
TA: The DOL fiduciary standard rule is set to be implemented next year. But hybrid advisors are able to recommend investments that are commissionable. How can "changing hats" when advising a client be handled in the most ethical way?
Cialdini: If they announce this fact first, the client will trust them to handle the issue properly because they'll be seen as willing to describe it ahead of time. They've pre-suaded the client honestly by saying, "I'm going to be transparent with you: here's the situation. I thought it fair to tell you." That causes people to assign trust to that individual and remain willing to accept their recommendations for investments that are commissionable.
