In today’s high-stakes financial world, expertise alone doesn’t cut it. What sets top advisors apart? Emotional intelligence—the power to connect, not just calculate.
Behavioral finance has taken center stage, helping advisors move beyond numbers to connect with clients on a deeper, more personal level. Dr. Daniel Crosby, Chief Behavioral Officer at Orion Advisor Solutions, and Robert Sofia, CEO at Snappy Kraken, recently unpacked how behavioral insights can transform advisor-client relationships.
➡️ Watch the full webinar replay, here.
In this blog, we’re sharing helpful tips for incorporating behavioral finance strategies that can transform your practice and enhance every client interaction, from building emotional connections to delivering the support clients truly need.
What is Behavioral Finance (BeFi)?
Behavioral finance uncovers the “why” behind financial decisions, showing how emotions and biases shape what clients do with their money.
It’s not just about dollars and data; it’s about understanding the human side of finance. When advisors tap into behavioral insights, they can help clients stay calm in a crisis, make better choices, and build confidence in their financial futures.
How to Incorporate Behavioral Finance Into Your Marketing Strategy
1. Make an Emotional Connection
As Dr. Crosby pointed out, “Money is the number one stressor in the lives of Americans.” And it’s not just about the economy—it’s personal. Clients worry about their financial security, their families, and their futures, and they’re looking for an advisor who gets it. A recent Accenture study found that clients ranked “someone who understands me” as their top requirement for a financial advisor. As Crosby explains, “It’s what clients want,” adding that they also look for someone who shares their values and connects with them.
But why does this matter? Dr. Crosby elaborates, “When we look at facts like people who work with an advisor are less likely to get divorced, have better marital communications, and are more prepared for an emergency, it becomes clear—if you can get your money right, it lifts all boats.” The takeaway message? It’s not just about managing assets; it’s about making clients’ lives better, and behavioral finance insights are the roadmap.
2. Be Consistently Present—And Personal
Consistency and personalization are the power moves here. Clients want to feel that you’re there for them, not just during scheduled meetings but in an ongoing, meaningful way. As Robert emphasizes, “Helping people is number one, and that translates to business success.” And that means being consistently present across multiple channels—email, social media, and, yes, even text messages.
Consider the “cocktail party effect,” a psychological phenomenon where hearing one’s name in a noisy room immediately draws attention. In the same way, personal touches in communication resonate deeply with clients, catching their attention amid a sea of financial noise. Robert points out that “personal communications from the advisor—particularly by email or text—are top-performing channels.” Make every message count. Use their name, speak to their needs, and give them something they can really use.
But personal touches aren’t just about inserting a name; it’s about tapping into what clients truly feel. When anxiety runs high, like during market dips or economic uncertainty, we make sure to tackle those worries head-on in our content. During periods of high anxiety, for instance, Snappy Kraken emphasizes addressing these concerns directly in content. Robert explains, “Right now, when we develop content, we’re thinking about what’s on the minds of people… what’s creating questions, anxiety, worry at this moment, and then head-on, approach those topics.” This proactive approach to emotional relevance is what keeps clients engaged.
3. Curiosity, Open Loops & Creating Intrigue
A little mystery goes a long way. Open loops—a technique where information is hinted at but not fully revealed—drives curiosity and engagement, sparking a desire in clients to learn more. Think about statements like, “Are hidden opportunities costing you?” This kind of messaging is designed to create a need for closure, making clients want to dig deeper and reach out for more information.
This phenomenon, known as the Zeigarnik effect, is powerful in content marketing. Dr. Crosby states, “When there’s unfinished business, when something is hidden or unknown, we have a desire to resolve that.” So, phrases like “What personal financial opportunities could be hidden in plain sight?” pique curiosity and prompt action. Content that taps into this psychological effect has a much higher chance of sparking responses, giving advisors a practical way to build deeper client engagement.
4. Lead with Behavioral Insights
People remember how you make them feel, not just what you know. Research in behavioral finance shows clients feel truly understood when advisors recognize their biases and address the emotions behind financial decisions. As Crosby points out, “Behavioral coaching adds 244 basis points of value per year to clients’ lives—far more than asset allocation at just 35 points.” This is why Dr. Crosby and Robert emphasize prioritizing empathy over pure analytics.
Recognizing that clients’ emotional states can vary is crucial, especially when things get rocky. “Clients are anxious, and as advisors, we should be, too,” Crosby notes. “Let them know that. Don’t just pretend nothing’s happening. Pair the authenticity with authority.” Showing clients you’re aware of their concerns and steady enough to guide them through, builds trust and reliability.
And during times of market volatility, it’s wise to remember that loss aversion—our tendency to prefer avoiding losses over gaining equivalent wins—is more important to clients than you might think. Crosby explains, “People hate losing 2.5 times as much as they love winning.” Messaging that acknowledges this aversion and emphasizes protection, stability, and emotional security will resonate much more powerfully than overly optimistic approaches.
5. Use Psychology to Stay Top of Mind
Consistency builds trust and, with the right approach, a little psychology can help you make a lasting impact. The mere exposure effect suggests that people prefer things simply because they’re familiar with them.
Frequent, meaningful interactions give clients positive mental associations with you and your brand. This is why Snappy Kraken emphasizes using automated sequences to nurture relationships over time. As Robert notes, “The more people are exposed to you and your brand, the more they’ll come to prefer it.”
Automation can be powerful here, but it’s essential to make each communication feel personal. “Every single week, if you have a new person that comes into your pipeline, a new prospect who’s expressed interest, you should be in their inbox, reinforcing your value,” Robert advises. This “cocktail party effect” puts your brand top of mind, making you the familiar, trusted advisor they turn to first.
6. Build Connections by Meeting Clients Where They Are
Dr. Crosby and Robert emphasize that financial decisions are deeply emotional. Advisors who get this have a real edge. “Money had more emotion-producing power than any of these other hot-button topics,” Crosby explains, referring to research showing that money elicits stronger emotional responses than topics like politics, religion, or even death.
In practical terms, this means that when creating content, financial advisors should tune into clients’ current emotional states and fears. In times of economic stress, for instance, content should acknowledge that fear and offer solutions that bring relief. Crosby describes this as “tending to the emotional elephant in the room,” emphasizing that “until those emotional concerns have been resolved, that’s rocky soil, and that seeds can’t be planted.” Addressing clients’ emotions doesn’t just make them feel heard; it’s the key to inspiring real action.
7. Layering Value with Humor and Authenticity
No one wants their advisor to be a stand-up comedian, but a dash of humor can break the ice. The Pratfall Effect suggests that we trust people more when they’re mostly competent but occasionally show a little human vulnerability. Robert recalls a standout email during the pandemic where an advisor included a lighthearted image from the movie The Martian to express how they felt about quarantine. Clients loved it. The humor hit home, making the message resonate even more.
As Crosby advises, “90% competence with a 10% tinge of humanity” is the right balance. This approach makes advisors relatable, breaking the ice without diminishing authority. Advisors who mix authority with authenticity make clients feel safe and respected.
8. Give Clients the Tools to Make Better Decisions
At the end of the day, behavioral finance is about truly seeing your clients, and making them feel understood and supported. Dr. Crosby sums it up, “This is the richest the world has ever been, yet people are profoundly lonely, stressed, and unhappy.” Using behavioral insights, advisors can bridge the gap between financial security and personal well-being.
So, give clients a sense of control. When creating marketing materials or planning content, don’t hand out all the answers upfront. Raise questions or challenges that clients may face, and then show them how you’ll help uncover the answers together.
Behavioral finance is a powerful differentiator for advisors in a crowded market. By tapping into what clients feel and need, you’re more than an advisor; you’re a partner in their journey to financial security. Use these insights to foster deeper relationships, build trust, and watch your practice grow.
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