Figuring out the ‘I’ll get to it’ client

Navigating a client’s procrastination can take patience, strategizing, and more patience

The saying that you can “lead a horse to water but you can’t make them drink” is as true today as it was in your great-great grandparent’s time. Especially when you replace the word “horse” with “client.”

"Roughly 20 percent of adults say they’re chronic procrastinators."

Roughly 20 percent of adults say they’re chronic procrastinators. Putting off taking out the garbage and going to the supermarket may be relatively harmless forms of procrastination, but other non-actions like avoiding signing legal documents by a particular date or not deciding on a timely investment opportunity can also be described as self-sabotage.

The financial services client who has to be reminded regularly about deadlines, constantly reschedules meetings, doesn’t respond to emails and calls, and asks for documents to be re-sent because they’ve been “lost” leads to a frustrating experience. Fortunately, there are ways to nudge a procrastinating client so they’re more responsive to holding up their end of financial management tasks. Below we’ll be looking at the strategies and insights you can use to navigate the challenges created by clients who delay their financial decisions.

Why the wait?

It’s understandable when people actively avoid unpleasant tasks. Nobody likes cleaning out a garage or weeding a flower bed. But when the issue concerns retirement or estate planning, many people choose to avoid these tasks, which may seem painless and can be done with the assistance of a financial professional.

Rather than avoiding a disagreeable task, some people also choose to procrastinate out of the fear of making the wrong decision. After all, what if the brochure about annuities they’ve been looking at is wrong? What if they lose all their money? What if they regret their decision the next day? Interestingly, a person’s procrastination is often linked to rumination, the process of repetitive negative thoughts that can create a wall between action and inaction.

“There are some causes of procrastination a financial advisor can do nothing about,” says Los Angeles psychologist James Smith. “People can be depressed, they might have low self-esteem, they may have trouble focusing on tasks. These can lead to someone seeing that they’ve got a task to do and setting it aside when they could easily complete it in that moment.”

There’s also the role of technology. Modern technology has made it easier than ever for clients to sign documents. But technology has also introduced a growing collection of time wasters: social media, gaming, email, news and sports websites, and more that take up valuable minutes that could be spent more productively.

And finally, there’s the sense that everyone has of being overwhelmed at times. Tons of deadlines, calls, and emails to return and meetings to be scheduled press on all of us, and that doesn’t include the tasks and duties from home. To effectively deal with a client’s procrastination one needs to recognize that the customer who delays may need more time and information to make financial decisions and turn around documents.

Here are some tips to get clients to be proactive:

Simplify: Even the most sophisticated client can become confused by jargon. Not everyone deals with complex financial products on a daily basis. When you present a product or idea, focus on the key features and benefits and make sure there are visual aids like infographics and bullet-point lists. When they ask for a deeper analysis, you can get into the subjects they’re interested in thoroughly.

Asking the client open-ended questions (for example, “How do you think this product will benefit you in retirement?”) can clue you in to concerns that might cause them to postpone a decision. Acknowledging their concerns shows that you understand that it can be a difficult decision to make.

Create a sense of urgency, but not too urgent: Of course, clients need to be aware of deadlines and how they’re affected by them. Missing a financial transaction before a certain day can affect any interest or dividends they receive as well as instruments they can use for taxes. So it’s the financial professional’s obligation to let the person know, “We need that document signed before the 1st.”

“Procrastinators will often put obstacles in front of them that prevent them from taking action.”

Highlighting the benefits of acting quickly can help: “I know you want to get that trust in place as soon as possible.” And rather than ask for paperwork back at a vague date in the future, “Just get it to me before the end of next week,” give them a specific date and time: “If I can get these documents back by next Thursday the 21st at 5:00, we can get your future on track.”

Take a nuanced and empathetic approach: Trying to scare a procrastinator into taking action might work once or twice, but it can also lead that person to feel pressured and ready to drop you as their advisor. Rather than sending an email saying “It’s Wednesday morning; are we getting that document signed before end-of-day Friday?” try sending an article about the product they’re signing up for with a helpful message, “Just wanted to make sure you read this before signing the document on Friday.”

“Procrastinators will often put obstacles in front of them that prevent them from taking action,” says Smith. “They need to ‘have more time’ to read the materials, and just never get around to it.”

Empathize with the client who’s dealing with a time crunch: “The week you’re having sounds like one I had at the beginning of the month! Let me ease some of your burden; do you need any more information or another conversation before signing the document?”

Consider using a JOLT: Business consultants Matthew Dixon and Ted McKenna developed what they call the JOLT method from watching high-performing salespeople at work to beat customer/client indecision and complete a transaction.

“J” stands for “judging the client’s ability to make a decision” early in the consultation/sales process. A client who seems slightly hesitant may delay a signature and need more information; one who appears very hesitant may not be a good customer for that particular product.

“O” is for “offering a recommendation.” Clients want a range of choices, but these can leave them feeling somewhat overwhelmed or confused. Pointing out the advantage of a particular product for the client’s individual portfolio can clear up the confusion and resulting procrastination.

“L” is about “limiting exploration.” Ideally you should be guiding the client based on your expertise and credibility. Throwing tons of information at them, unprompted, can lead to procrastination as the client deals with an overload of data while figuring out what’s right for them. Show that you’re there for any questions before signing, but keep the focus on getting their signature.

“T” is about “taking risk off the table.” If the client is postponing a decision because they’re worried about the investment, help reduce this anxiety by reminding them of the safety features of the fixed or fixed index annuity you have proposed.

Commit to help the foot draggers

Procrastinators need your counsel and the financial products behind you just as much as anyone, but advising them can take a little more time and effort. Understanding the motivation behind their procrastination and using effective strategies to help them get past it can reduce their delays and help you turn the procrastinator into your most responsive client.