Discussion Of Risk
Updated
Discussion Of Risk is a Driver of Elevation Goal 1: Making great first impressions, increasing conversion
Data based on responses to the following question, asked in the First Impression review form
"Did you discuss the risks associated with getting a mortgage?"
Possible responses
- We didn’t discuss the risks associated with getting a mortgage
- They asked me questions to assess whether the mortgage is affordable with my current income and expenses
- As well as assessing whether the mortgage is affordable with my current income and expenses, they also asked me to consider whether the mortgage would be affordable if my situation changed
Discussion Of Risk Score
Proportion of respondents answering “They asked me questions to assess whether the mortgage is affordable with my current income and expenses” or “As well as assessing whether the mortgage is affordable with my current income and expenses, they also asked me to consider whether the mortgage would be affordable if my situation changed”
Relationship between Discussion Of Risk and Conversion Rate
The relationship between Discussion Of Risk and Conversion Rate is statistically significant
Why do we ask about Discussion Of Risk?
Our qualitative research with firm management teams, advisers and clients indicated that discussion of risks builds trust with the client and as a result drives conversion.
We confirmed this relationship quantitatively through our review forms.
How to improve your score:
Relate explanations to your client’s circumstance
“Could you still afford your mortgage payments if the micro-brewery closed, and Mark lost his job?”
“What would you do if interest rates went up much more than Jane’s pay rises from the local council?”
No-one thinks that bad things are going to happen to them. The best way to get your client to fully engage is to make them visualise the situation happening to them.
Paint pictures
“Imagine for a second that a letter comes through your letterbox in a brown envelope. You open it to see that the second paragraph says your mortgage payment is going to increase by £200pm. How would you feel?"
“If you were ill for several months, and couldn’t go to work at the solicitors, could you still afford Emilia’s horse-riding lessons and your mortgage payments?"
“If you did decide to have another baby, giving Jack a little brother or sister, how would this affect your finances? Could you still afford to pay your mortgage taking the additional nursery fees into account?”
By getting your client to imagine a situation happening to them, you’ll get a stronger emotional reaction. This will make them really think about their situation before committing and will make them much more engaged in the process.
Validate understanding
Explain back. Have your client’s explain complex topics back to you to confirm they have fully understood.
Understanding the risks involved with taking a mortgage is incredibly important. No-one likes talking about bad things happening, however, by ensuring your clients understand risk, you are helping them make effective, informed decisions.
