What is "Habit Stacking" and does it matter?
Lloyd Lofton Jr. L.U.T.C.
Speaker, Trainer, Coach 30k connections - Voted 1 of 33 Best Presentation book to read Saleshero's Guide to Handling Objections!
Habit stacking—the idea of linking new behaviours to established routines—can be an effective tool for financial advisors and insurance agents to build and grow their practice. Here's how they can leverage this technique:
1. Client Relationship Building
Stack Habit: After each client meeting, immediately send a follow-up email summarizing key points and next steps.
Routine Anchor: Link this to the act of closing the client file after a meeting.
Impact: It reinforces trust, increases engagement, and shows attention to detail.
2. Prospecting
Stack Habit: Add prospecting calls or emails after a daily habit like morning coffee or a team huddle.
Routine Anchor: Each day, right after this set routine, make 5-10 prospecting calls or touch base with potential clients.
Impact: It ensures prospecting becomes a consistent part of the day, growing the client base.
3. Referrals
Stack Habit: Right after securing a new client or completing a successful review, immediately ask for a referral.
Routine Anchor: This can be done right after you finish the official paperwork or review.
Impact: Regularly asking for referrals without forgetting can help create a referral network naturally over time.
4. Continuing Education
Stack Habit: Use habit stacking for professional growth by committing to reading industry articles or listening to financial podcasts during existing free time (e.g., while commuting or exercising).
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Routine Anchor: If they already drive to client meetings, podcasts can be played on the way.
Impact: It helps them stay informed and sharp without scheduling extra time.
5. Client Reviews and Updates
Stack Habit: Make client review meetings a standard follow-up after annual reviews of portfolios, policies, or life insurance needs.
Routine Anchor: Link this to the end of the fiscal quarter or other recurring timeframes.
Impact: This creates a system of consistency for client outreach, improving service quality and retention.
6. Content Creation for Marketing
Stack Habit: Create a habit of posting a market update or financial tip after checking daily market reports.
Routine Anchor: Do this immediately after reviewing the daily financial news or performance reports.
Impact: It helps to maintain a consistent digital presence and position themselves as thought leaders.
7. Networking
Stack Habit: After attending networking events or industry conferences, follow up with new connections by sending personalized emails or scheduling coffee meetings.
Routine Anchor: The habit can be linked to unpacking or clearing event materials from their bags post-event.
Impact: Consistently following up strengthens relationships and builds a robust network over time.
By integrating these small but intentional actions into existing routines, advisors and agents can gradually grow their practice without overwhelming themselves with new tasks. It's all about consistency and leveraging time efficiently.