Home / Deeper Thought / Using stories to help clients understand investment concepts

Simple techniques like analogies and metaphors can help you connect with clients, but 'storyselling' needs to be simple and relatable.

What would happen if, starting today, you had to begin talking about investment products to your clients without the use of statistics, charts, rankings or ratings? Would you know where to start? 

Perhaps you start paying more attention to the personality and pastimes of your clients and focus on discovering who they are and what’s right for them. You may spend a lot less time talking and a lot more time listening. It is important as an adviser to not only be knowledgeable but to be able to communicate to clients in a way that they clearly understand. One way to do this is to integrate visual, imaginative, sensory and emotive aspects into your client presentations through the art of telling stories.

This is what we refer to at Invesco Global Consulting as ‘Storyselling’ – the use of stories and metaphors to help clients understand investment concepts, stir their imagination and promote a decision that fits their comfort zone. 

This approach works not only because it appeals to the left, logical side of the brain, but focuses in on the right, intuitive and emotional side, getting clients fully involved in the decision – intellectually, imaginatively, emotionally and intuitively. We all know emotions drive decisions and the right side of the brain is where people can picture and buy into what you are selling.

Our studies show that the average decision time was reduced by 20 per cent compared to using more logical ‘left-brain’ approaches to selling ideas and products. We also found that those who made their decision based on the metaphor used were 10 per cent more confident in their decision. This shows what a great inclusion this could be into your business: quicker and more confident decisions from your clients. 

When it comes to selling scenarios, the right brain needs and desires the following:

• Context (personal relevance)
• The big picture (long-term relevance)
• Humour
• Images
• Visual stimulation
• Emotional stimulation
• Affirmation of values
• Metaphors
• Stories

We know one of the most powerful ways to sell an idea to clients is by simplifying matters, not complicating them. Everyone loves a good story, but how can we put this into practice to tell the financial story?

Let’s take a look at using analogies and metaphors:

When using analogies and metaphors to assist with explaining complex ideas or products to clients you need to consider a few things before you can create your story:

1. Is it a natural or common analogy that anyone can relate to? We find that analogies from nature are often more effective than technical analogies. For example, describing the power of your car in horsepower is easy for everyone to visualise and understand, as opposed to describing your car’s power in kilowatts.
2. Does it bring light or temporary puzzlement? A good analogy should be neither too obvious nor too baffling.
3. Does it trigger the target emotion? Find metaphors and analogies that communicate your target emotion; patience, safety, balance, growth etc.
4. Does it bring the “Aha!” response? Metaphors are most effective when they bring new perspectives to old ways of viewing things. A good metaphor can instantly open understanding and comprehension.

As an example, we have often heard fixed income funds being compared to wearing a seatbelt or having a life raft on your boat. You wear your seatbelt even on a short trip to your local shops, the same reason fixed income is considered in a portfolio – just in case.

By using simple techniques, you will gain incredible confidence in your ability to communicate and connect with your clients. Your clients will also feel a stronger bond with you because you are not just someone who manages their assets, you are someone who was able to simplify and take them on the journey to understanding investment concepts they once found confusing.