Doing the Right Thing Two Letters at a Time

In an era of increased industry and regulatory scrutiny, it’s no secret that the main purpose of this column is to encourage insurance and financial advisors to continue to practice and communicate their exemplary ethics.  Last month we outlined the many benefits that come from being ethical, including the simple reality that those who maintain a record of solid ethics make more money.  Why?  Because research proves that ethics builds trust and trust sells – in both the long and (contrary to popular belief) in the short term as well.

The word “ethics” is broadly defined as “the adherence to an upright moral code, a set of standards that define good behavior.”  For advisors, this means to do more that just “play by the rules” out of duty.  Ethics involve aggressive positive action, a behavior that is exemplary, easily noticeable by all.  

So what can you do now to distinguish yourself as an advisor who is truly ethical?  Using the letters in the word “ethics” provides an acronym for 3 areas of action that is easy to remember:

1. ET (Establish Trust) There is no question that trust builds over time and is earned through a series of positive experiences.  But there are some things you can do early to speed trust along:

• Be confident and smile, make good eye contact and speak slowly, never rush or hard-sell
• Ask questions that relate to your client’s values, (not just their money) and truly listen and note their responses
• Tactfully explain your personal values/accomplishments and freely give out your personal profile document (agent bio)
• Offer the contact number of a credible source to verify your license and professional accomplishments

2. HI (Honest Information) Honesty is not only the best policy, it’s the only policy.  This comes from knowing everything about the products you sell and adhering to the following:

• Do not exaggerate the realistic returns they can expect from your recommended product
• Outline both the positive aspects and possible negatives of any investment
• Never omit or give misleading statements regarding a product’s liquidity, surrender charges, expenses, or fees
• Never pretend to understand something you do not know – always offer to do research and return

3. CS (Customer Service) Following thru on every promise you make speaks volumes about your character, establishes trust and credibility, and leads to numerous referrals and repeat business. Remember:

• Pick up the phone and communicate – a brief “just wanted to touch base” is very reassuring
• Schedule regular client reviews, seminars, and appreciation events
• Keep your clients informed by sending them your personalized monthly newsletter
• Adopt creative ways to say “Thank you, I appreciate your business”

For additional information on ways to establish trust and credibility, or to create a free personal profile document, go to www.ethicscheck.com

Published in: Senior Market Advisor Magazine - July, 2005 — SMA Website

<<< Back to Articles