As discussed in our article Traditional Risk Tolerance Questionnaires Lead to Inaccurate Risk Appetite, risk tolerance questionnaires help mitigate biases and emotional subjectivity in investing decisions. But risk profiling through Totum takes it a step further. Unlike other questionnaires that only provide one aspect of risk at a time, our platform calculates risk capacity, risk preference, and portfolio risk all at once. In addition, we’ve also included other benefits that help increase your client conversion rate.
In a study detailed by the Harvard Business Review, a customer is more likely to make a purchase when the decision-making process is simplified for them. It was also shown to establish more trust with the consumer.
Keeping this in mind, we devised a simple questionnaire that is often completed in under a few minutes. Consisting of just 11 questions, our questionnaire focuses on facts rather than emotions. Clients can answer these quickly, with little need to ruminate. They are also relieved of the pressure of feeling they must give a “right” answer or understand investing.
Furthermore, this helps builds rapport and trust because the client will feel you understand them better. You’re getting to know their unique personal situation, which is often a step above what other brokers or robo platforms are offering.
Once clients finish the questionnaire, you can then create custom proposals by utilizing Investment proposal generator feature, that provide them a visual of their risk. These visuals further assist you in the sales process. Studies by marketing expert Neil Patel, have shown that the right visual content can increase conversion rates. Our visuals help you demonstrate to your clients how their current portfolio may needs adjustments and how your recommendations can match their own unique life events. We provide graphs, portfolio comparisons, and more.
Totum continues to offer support beyond the initial consultation. We specifically set up our platform to not only help you get clients, but retain them. Each day, our software uploads your clients’ data and automatically scores the accounts and portfolios for that day. This allows you to adjust at any time, as needed.
As financial educator Michael Kitces wrote in his article “Growing Your Question Game: 21 Questions To Ask Clients And Prospects And How To Structure Them For Better Client Engagement”, “…knowing how to ask the “right” questions that elicit trust and create rapport can be vital for financial advisors to gather the information they need – both financial and personal – to ultimately formulate the best financial planning recommendations for their clients!”
Totum offers these “right” questions. As you continue to use the platform, you’ll be able to show that you’re providing value with a fluid portfolio that adapts as their life factors and goals change. By providing a customized risk profile based on facts, you can demonstrate to your clients that you are competent, credible, and have their best interests at heart. The result? Better engagement with prospects, the establishment of trust, and increased likelihood of your firm landing its next best client!
Schedule a time to see how Totum can help you better engage potential clients