Humans form a first impression in roughly 100 milliseconds, according to the National Library of Medicine. That means before you even offer a handshake or utter a word, a prospective client has already made a snap judgment about your trustworthiness, competence and professionalism.
If you flub the first encounter, correcting course becomes a massive uphill battle. However, on the upside, understanding this psychology and applying behavioral finance means you’re well-positioned to curate a client experience that builds trust from the very first touchpoint.
Bias? Blame Science!
When a prospect interacts with your firm, several cognitive biases are activated.
The Halo Effect
The halo effect occurs when one positive trait or experience colors how a person views everything else. For example, if your office is spotless and your receptionist is a ray of sunshine, clients might subconsciously conclude that your financial planning skills will exceed expectations.
Anchoring
Anchoring in a client-advisor context means the first interaction becomes the basis for comparison. If your onboarding process is disorganized, that chaotic experience informs subsequent ones. The client will continually expect disorganization unless you prove otherwise.
Loss Aversion
The pain of losing is psychologically twice as powerful as the rewards associated with gaining. When meeting someone for the first time, a bad initial experience carries significantly more weight than a good one.
Thin-Slicing
This is a case when people draw out patterns based on very narrow facets of the experience. Prospects make sweeping judgments based on seemingly irrelevant factors, such as the music playing in the lobby and the quality of the coffee. Like it or not, these are data points that enter into the equation.
Clients form sweeping conclusions from narrow slices of information. An advisor whose waiting room feels dated and disorganized may find that a prospect subconsciously questions their attention to detail in portfolio management too. The environment speaks before you do.
First Things First
When you get inside the mind of prospects, you can better tailor your approach to meet them where they are:
A first impression happens well before someone arrives at your front door. Every step of the journey sends a loud message about your brand.
Office Location and Exterior
The experience begins in the parking lot. Is the parking clearly marked? Is the exterior signage clean and visible? A lack of orientation can create a negative emotional anchor and cause you to lose credibility.
The Lobby and Waiting Area
Your waiting area should set the tone for the first meeting. Blaring financial news networks or political coverage can be off-putting. Cleanliness is non-negotiable.
Décor and Design
Adding personal touches, like tasteful art or family photos, humanizes you and makes the space feel less generic.
Beverages and Food
Offering food and drink is a universal sign of hospitality. In this case, a warm cup of coffee or a cold branded water bottle can be well received.
Staff and Greeting
Your front office staff holds great power. A warm, prompt greeting using the prospect’s name shows respect.
Gifting
When someone receives a small gift or gesture, they naturally feel a subconscious desire to return the favor because of how the brain is wired, according to the University of Arizona’s Department of Psychology.
However, be mindful of your choice. A generic, low-cost item can make the client feel undervalued, according to research published in the Journal of the Academy of Marketing Science. A thoughtful, small gift aligned with a client’s known interests creates a positive association.
Digital First Impression
Today, a client’s first impression is often formed by digital channels. A clunky, frustrating digital onboarding suggests that working with you might be a headache.
Action Items
Advisors become blind to their own environments. Take immediate action to gauge your firm’s first impressions.
Walk the Office as a Client
Start in the parking lot and walk through your front door. Sit in your waiting area. Look at the ceiling tiles, reading material, and the lighting. Notice the small details visitors encounter every day.
Conduct a Blind Audit
Ask a friend to call your main phone line and visit the office. Have them report back honestly on their encounters across all the contexts.
Review Onboarding Emails
Take inventory of your automated welcome emails and onboarding requests. Check for broken links, outdated logos and overly formulaic language.
The bottom line? A seamless digital experience is just as important as a welcoming office. An onboarding process that falls flat threatens your firm’s future.
As financial advisor Christopher Hensley of Houston First Financial Group noted about the PreciseFP platform: “If you introduce a form with an unfamiliar company logo, it is an extra conversation you do not need.”
Read the full Houston First Financial Group case study here, and evaluate your first impressions today and use tools like PreciseFP to make sure your digital presence is as polished as your elevator pitch.
