Financial advisors attract affluent clientsWith today’s uncertain times and volatile markets, it’s more important than ever for  financial advisors to focus on maintaining client relationships.

One of the top reasons people switch advisors is poor communication. Now is a particularly challenging time for everyone, both financially and personally, so you may need to consider new approaches to help clients navigate the road ahead.

Here are some ideas for building more meaningful connections with your clients…

Be proactive to build reassurance

“They don’t call, they don’t write – they pretty much evaporate when the Dow is down,” notes Investopedia, citing that a lack of attention is how many financial advisors lose clients. At any time, but especially in a crisis economy, your relationships may rely on your ability to reach out with empathy and support.

Worried you don’t have reassuring news? You can still offer reassurance. The right message at the right time can make a big difference to people. Let them know you’re available if they have questions or concerns, and that, as always, you’re watching out for their best interests.

“Create a communications plan… you’ll get better results and your clients will appreciate your efforts.”

— Craig Iskowitz, Ezra Group

Craig Iskowitz, a wealth management thought leader, and Founder and CEO of Ezra Group, LLC emphasizes the importance of creating a communications plan:

Don’t just call clients randomly or wait for them to call you and then try to figure out what to say. Take some time and write down what you want to say, how you want to say it, how often, via what channels (email, social, website), and what key points you want them to take away from your communications.

Staying in touch also helps your clients make investing decisions that are appropriate for their needs and risk tolerance. For example, in a rollercoaster market, people may be inclined to buy or sell impulsively, when it might not support their long-term financial goals. Your clients are more likely to see you as a trusted advisor when you anticipate concerns and proactively provide guidance.

Gavin Spitzner, President of Wealth Consulting Partners, LLC observes:

The reality is that everyone is putting on a brave face, but sane people are nervous. Advisors can play an incredibly important role in helping people remain rational and not do anything rash.

Be personal, not generic

You know each of your clients and you’ve built up personal relationships over time. Although you may be busier than ever fielding calls and email, resist the temptation to respond with generic messages.

Will Trout, global head of the wealth management research practice at Celent, encourages financial advisors to stay relevant:

Coronavirus has turned lives on their heads. Now is not the time for windy musings on ESG strategies. Instead, encourage clients to think about what to do with their cash and their long-term approach to the market.

Make sure your language is clear and easy to understand, and your tone remains friendly and conversational. Why does this matter? When a key communication sounds rigid, generic, or laced with industry jargon, it may get ignored. And that’s the last thing you want when you’re trying to communicate something important to your clients.

Steven Ramirez, CEO at Beyond the Arc notes that how you say something is as important as what you say:

In our decade of experience creating wealth management client communications, we’ve learned that getting the language and tone exactly right can mean the difference between building trust and damaging relationships.

You may be addressing the severity of a situation, but you don’t need to sound severe. As you craft that email or letter, put yourself in their shoes. Focus on what’s most important for clients to know and why. If addressing concerns or negative impacts, clarify the facts and highlight any options your client may have.

If there’s any call to action, be sure that stands out clearly, and make it easy for clients to contact you. And remember, for a financial advisor, even a casual email or text message may be subject to compliance considerations.

Be creative in managing relationships

Current circumstances may make it difficult or impractical to meet clients in person, so take advantage of video conferencing. It provides greater convenience and flexibility for your clients, and may increase opportunities for you to meet with them. Check with your compliance officer on any special requirements for video calls, for example, if they need to be recorded and archived.

“Be a lifeline to your clients, whatever that means to them.”

— Gavin Spitzner, Wealth Consulting Partners

Zoom and Microsoft Teams are popular video conference tools, which can integrate with calendar systems and support HD video, screen sharing, and more.

Given the rapidly changing landscape, encourage clients to talk about their financial needs, goals, and values – and make sure you reflect back what you’re hearing to be sure you understand. You’ll need this information to help them make decisions, and there may be some difficult decisions ahead.

How Beyond the Arc can help

With our global environment and economy changing day by day, firms need to re-evaluate how they communicate. Whether nurturing new clients or renewing connections with people who have counted on you for years, improving your communication strategies is a good investment.

Feeling challenged with how to reassure clients? An outside perspective can help — let’s talk.

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Last updated: 8/6/2024
Image source: Shutterstock