Source/Contribution by : NJ Publications
Just imagine, you have a severe stomachache and you go to see a doctor. The doctor instead of discussing your problem, rather talks about the instruments he uses in your diagnosis and the effectiveness of the medicines he gives. You'll be like confused, you want to know the cause of the ache, and how soon will you recover, and what is happening is, you are being pestered with information on medicines and equipments.
Similar is the advisor client story. The client wants to know the solution to their needs, how can they reach their goals, and what advisors in general tell them is the features of the product they are selling.
Consider the following statements:
Statement 1: This is ABC Mutual Fund scheme, it invests in a combination of Stocks and Debt securities. This scheme has historically outperformed its peers and the benchmark. After 5 years, you can redeem this Mutual Fund and actualize your goal of buying a house.
Statement 2: For your goal of buying your house after five years, you should invest in ABC Mutual Fund scheme. Since it's a Balanced Mutual Fund scheme, it will grow at a better pace than your FD as well as the risk will be controlled. Considering your investment horizon and goal amount, it is a good fit for your goal.
You know, which sales pitch would be more engaging for the investor and Why. The latter focuses on the Solution, the former on the Product. In your profession, you must sell products, the difference that the latter creates is, you are not selling a product, but a solution.
You might feel that the end result is the same, the products are actually solutions to the investors' needs, but in our business, ends don't justify the means. The solution the investors are looking for is a link between the need and the product, you need to connect the dots for them.
As advisors, we are tempted to talk about the products and the services that we are offering, but this is not what the investor is looking for. He/she is looking for a solution to his/her need, a way to reach his/her goal. Product selling is Seller centric while Solution selling is Client Centric, there is a thin line between the two, and once you are able to identify the line and adopt a client centric approach, you have got it all.
How do you sell Solutions?
We have penned three key points which can help you understand and implement a solution oriented approach:
1. Listen: You'll be able to provide an appropriate solution only when you understand the problem. Listen carefully to the client's problems and needs, ask questions to get clarity, and then create a connection. Offer a solution which meets the needs, apprise the investor that how your products can help them in achieving their goal and how it is better than the alternate products available in the market.
2. Highlight the value creation: Returns, yes you'll talk about returns, you'll do return comparison, the investing convenience, liquidity, you'll talk about all of that. But all of this is ancillary. The primary focus should be on the value that's being created and how it is contributing to the betterment of the client's life. For Eg. An SIP of Rs 10,000 a month in an XYZ Mutual Fund Scheme will enable the investor have Rs 25 lacs, 10 years later to pay for his daughter's higher education. This is the value you are creating. You cannot skip talking about the product, but it's not the only thing you should be talking.
3. Marketing: One of the most impactful Indian Ads Maggi, it doesn't talk about the noodles, rather it showcases, a kid comes running into the house and says “Mummy bhook lagi” and Mummy says “bas 2 min” and quickly comes up with a bowl of Maggi. Or the Asian Paints Sunil Babu Ad, where the car and the Mrs grow old, but the house is as new as ever. These Ad's only concentrate on the value or the purpose of the product, rather than the product. Customer doesn't buy your claims, till the time you are only focusing on your products, no matter how aggressive marketing you do, won't attract people to your door. The value you bring to the client's life must be communicated through your marketing efforts as well.
Customers, no matter which field it is related to, are looking for customized solutions, and businesses are on their toes offering them the same. Even the mutual fund industry is not behind, they are coming up with targeted mutual fund schemes, like Retirement funds, children's education funds, monthly income funds, etc., to cater to the unique needs of investors. To let your growth know no bounds, a solution oriented approach should run in the blood of your organization. Sell the problem you solve, not the Product.
