When Prospecting for New Clients, First Assess Their Personalities

In last week's blog post, we discussed why clients might leave an advisory firm (and how I tend to take it personally). This week, I'd like to continue by delving into the personality issues that can arise when a client and an advisor are not well matched. 

Over the years, I have participated in several personality tests from various companies. Most use a four-quadrant matrix to classify an individual's personality type. Before we begin, it should be noted that the results of these questionnaires are only an indication of a person's tendencies. In other words, people tend to exhibit traits from more than one quadrant. That said, I must admit, these tests pegged me well. I recall my first personality test about 25 years ago and how I was stunned by its accuracy. 

Personality types may be divided into two primary camps, those with outgoing personalities and those who are more introverted. The former, those who tend to be more talkative, may also be controlling or highly spontaneous. Conversely, the introverted individual may be analytical. Each personality type requires a different approach. I suggest that at the beginning of your first meeting with a prospective client that you ask a few open-ended questions to see if they are the talkative type or more reserved. This should be your first observation. If they like to control or emote, loosen the reins a bit. Just be careful they don't dominate the conversation to the extent that you never get to the subject at hand. Also, if they are controlling, remember that it often stems from an insecurity and their need to control their environment. In short, they may be afraid to "let go."