The senior market is a very appealing target group for many financial and insurance programs. Not only do seniors have billions of dollars in buying power, they also are living longer and leading more active lives, and they are in greater need of your advice than ever before.
Building trust-based relationships with seniors is no easy task, however. Many are still haunted by the frightening lessons of the Great Depression from their childhood. Those who became investors later in life have experienced numerous shocks to their portfolios and are now swimming in a sea of confusion. Increasing their bewilderment is the number of financial products that have exploded on the market in recent years. As a result, many seniors feel left behind in their understanding of the new rules that govern the world of money.
This uncertainty makes reaching out to seniors a daunting task, but one that's still worth pursuing. The key is understanding who they are and where they've been and learning how to communicate with them. You need to first understand them and then be understood by them. Here are three keys to communicating better with seniors.
Empathy
How well can you understand, appreciate, and relate to the life experiences of someone 30, 40, or 50 years older than you? How can you empathize without patronizing? What specific things can you do to let them know that you understand and care?
Empathy begins with knowledge. But seniors are not a homogenous group, so there's a lot to learn. Obviously every person you meet is going to have a different set of life experiences, and you must take the time to get to know them as individuals. There are some broader generational issues that will help you get started.
Psychologists say that a person's values are formed during the "coming of age" years -- somewhere between age 16 and 25. It is during this critical time that they emerge from childhood and become young adults. They begin to develop their own understanding of the world around them and become personally influenced by its impact on their lives.
Search for key "generational markers" by understanding what was going on 50 or 60 years ago -- back in the 1940s and 1950s. It was an amazing time of change, starting with the tail end of World War II, the greatest conflict the world has ever seen. Many senior clients' lives and values were shaped by that event.
As a result, core values in their lives tend to revolve around concepts such as personal sacrifice, teamwork, sense of belonging, patriotism, trust in authority, and family. To this generation, there are no quick fixes or easy roads to success. Hard work, discipline, and frugality are things they respect in themselves and others. When discussing yourself, your firm, and your plan for their money, those concepts will resonate very well with seniors.
Listening skills
Listening carefully, completely, and with patience may be the most valuable skills you can have when working with seniors. This is not easy, especially in today's fast-paced world of finance. But keep in mind -- that's your world, not theirs.
Slow down. Relax the pace of your conversations. For your senior clients, it's never about the immediate solution. They want and need to be understood on an emotional level, and that takes time, caring, and patience. They want to see that you've put serious work into finding solutions that suit their specific needs.
Turn off the computer and move out from behind your desk. Learn to stop talking and listen with your mouth shut. There is a history of passion, excitement, fear, joy, failure, and success that must be told if you intend to build rapport and trust. So let them tell it.
Learn to ask supportive and reflective questions that show you're listening. The simple phrase "Tell me more about that" will open up a deeper view into their world. Or try this one: "You said something fascinating a few minutes ago that I would love to go back to." These types of phrases indicate that you are actually paying attention, which is a very meaningful form of respect that you must pay if you intend to bond with senior clients.
There's one problem, however. You can't fake genuine curiosity. After decades of reading people, seniors are very astute at picking out the people who are listening just long enough to get to the close of the sale. If the idea of letting a client tell you their life story turns you off, then move on. This may not be the right market for you.
Clarity
When you do eventually speak, say something meaningful and with total clarity. Our world is alien to most seniors who did not grow up with CNBC or Yahoo Finance. They had to learn their financial lessons from experience and hard knocks. They're not looking for detailed technical explanations of complex financial programs. They are looking for someone they can trust to guide them through this minefield of confusion.
Talk about the benefits of your programs, not the features. Keep your discussion to those issues that reach their core values. Show them how to live their final years with the dignity they've earned. Help them to never be a burden to their children -- an idea that goes against everything they've worked for all their lives. As for those clients who are fortunate enough to be able to give back to family or their community, you can help them share their values as well as their money.
You have tremendous power to help senior clients when they need it most. You are armed with financial tools and skills that can make their lives secure, fulfilling, and even joyful. They've always been there for us; now it's time to be there for them.
Frank Maselli is an executive vice president for IXIS Asset Management Advisors Group, the U.S. distribution arm of IXIS Asset Management Group, a $507 billion global top 20 money manager. As director of IXIS Advisor Academy, Mr. Maselli has been teaching advisors how to build their practices for 10 years and is consistently rated as a top industry speaker. He can be reached at fmaselli@ixisag.com.
