Contacting the Knowledgeable Prospect



When a fact is presented that makes no sense, it is called “counterintuitive”.

For example, warm water freezes faster than cold water. That is true, but it makes absolutely no sense without scientific understanding; it goes against what one might guess to be true, and is thus “counterintuitive.”

Another counterintuitive fact is that investors who are very knowledgeable about investing and finance are more likely to accept a cold call from a financial advisor looking for new business.

Spectrem’s research always segments investors based on their knowledge level, in part because the attitudes and behaviors of very knowledgeable investors is so much different than that of the investors who claim to have little to no knowledge about financial matters.

In the Spectrem study Preferred Sales Approach: Capturing the Wealthy Investor, very knowledgeable investors state that they are more likely to accept a “cold call” phone call from an advisor looking to attract new clients.

While that might seem odd, it does match one other factor about very knowledgeable investors from Spectrem research: they are more likely to be pursuing new information about investing, and thus might find it attractive to hear from an advisor they do not know.

According to the study, 16 percent of all investors say they would interact with a cold call from an advisor “at least half the time”. That alone is an indication that cold calling is still a viable way to find new business.

But, among very knowledgeable investors, 29 percent said they would accept such a call “at least half the time”. That is nearly double the rate of all investors, and further indicates the value of placing cold calls when the opportunity presents itself.

While some advisors prefer the “cold call e-mail” as a less intrusive and easier method of making first contact, 47 percent of the very knowledgeable investors say they prefer their cold calls to come via the telephone.

There is much to learn about proper and successful sales approaches from the Spectrem study, and it is likely that there is other information that is counterintuitive.



©Spectrem 2020

Keywords: communication, cold calls, investors, advisors, Spectrem, preferred sales approach, knowledge