Client profiling is done in almost every business, and if Binary Options have taught us anything is that profiling your clients could guarantee long term income while maximizing the “client potential”.
Converted client
Most privet sector investors know by now that by leaving their information on a promotion advert would result in a massive amount of incoming calls.
That first call is extremely important for the broker platform.
Experienced traders know by now that within activating an account with funds you would be asked 5 main questions,
- How old are you?
- What do you do for a living?
- Are you married or single?
- Are you an experienced trader or a first timer?
- What you would like to achieve from this investment account / what is your goal?
These questions are usually masked under the excuse that the information is to build the account profile, in fact, these questions are for the company to build the client profile.
Those 5 questions helps the company evaluate the clients’ potential, where the goal is to keep the investors trading and maximize money deposits into the broker platform.
Retained investor
Every client that registered to the company has a negative ROI until the point he returns his acquisition value.
When it comes to online brokers, a “good” retention agent will assure his clients keep trading and depositing.
They tend to prioritize personal relations, rather than professionalism and good results.
The broker would rely on building a close and almost friend like relationship; pushing it to high trust level, depending on the intention that the client will be in a position which he will not feel comfortable saying no, or want to disappoint their broker by making a withdraw or requesting to stop a position.
Using the information gathered from the conversion agent, the broker (retention agent) continues to build the client profile. The longer and deeper their relationship gets, the better and more detailed the client’s profile becomes.
What should I notice?
- First conversation:
If you prefer to activate your account through the representative (and not through the platform itself) you should keep an eye for the following:
- Conversation pace:
Conversion representatives work on statistics, meaning the more clients you call the bigger chance you will “convert” clients.
To keep this ball rolling, conversion representatives won’t spend more than 15 minutes to get all the information they need, including the payment information.
If you feel that you are being rushed or pushed to make a deposit, stop and remember that you are not obligated to follow through with their instructions. Window shopping for the right brokers is more than fine, and in fact an intellectual business must.
- Insufficient information:
Clients would get a brief and “on point” explanation about the trading method and certain terms and conditions. In fact their sale tactic is to get the client in to a “Yes” mode.
Asking mainly questions they know the client will answer ‘yes’ too, is a psychological method they use that known as “conditioning the mind”.
Client that keeps answering yes is most likely to agree when asked about a desire as money.
- Small talk
s:
If your broker is talking more about his wife and kids, or if there is clear flirting and excess flattering rather than talking about actual market events – this should be a red flag!
There shouldn’t be any reason for a broker and a client talking like friends over the phone. At the end of the day, a real qualified and legally licensed broker does not look for friends in his portfolio. He looks for investors that could meet his portfolio standards and conditions.
- Liquid titles:
Long term investors might have noticed this one.
When they first started, they had a “broker” working on their account. Then, they were assigned to a different representative, an “account manager” or a “financial adviser”.
If you are a relatively small investor (under 50K account) and you are assigned to a high-level broker (such as the floor manager, VIP analyst, anything that sounds exclusive) you should be very skeptical.
Usually this is a well-used manipulation tactic to make a hard client feel exclusive and to sweet talk him into adding more funds.
Trader account verification secrets
Winchargeback