Have you ever lost a client without explanation?
No matter how you look at it, you can’t quite pinpoint what went wrong. Learning some of the things that most turn off clients can help you adjust your service, so you can stop losing good clients and can gain new business.
Financial security is of the utmost importance to your clients — that’s why they came to you! As such, they respect a certain level of timeliness and attention from their financial advisors to make them feel secure.
If you’re not getting back to your clients within a few days, let alone a week, how do you think that makes them feel? Probably not too confident in your abilities or priority to serve their needs.
Poor or slow communication can indicate disinterest and/or disorganization to a client.
Churning is a term used to describe the process of repeatedly buying and selling investments, in order to earn a commission. Without a valid reason or specific request from the client to buy or sell, financial advisors shouldn’t be making these decisions alone.
Advisors should only be buying/selling if the client’s risk tolerance has changed, a new and better investment comes up, the client specifically asks for a change or something similar.
Have you ever made a promise to a client that you weren’t sure you could keep, just because you wanted their business? Even when you believe something to be a “sure thing” or “guaranteed”, it’s better to err on the side of caution.
In fact, promises of “guaranteed” returns can make a client more skeptical than if you lower their expectations and spoke more realistically. It’s always better to underpromise and over-perform than vice-versa.
Clients will appreciate realism over false promises — they expect some risk.
For the most part, clients want to understand the facets of their investment decisions. That includes fee structure, projected performance and why it makes sense for their goals.
As an advisor, it is your responsibility to educate your clients, so they feel confident and accountable for all their investment decisions. Some advisors make the mistake of simply skimming over the details or assuming their clients understand more than they do.
Allocate adequate time to explain the details of every investment decision; not all clients will want the full details, but it’s important to give them the option and opportunity to learn.
Some clients may feel demoralized or patronized by an advisor who excludes them from decision-making.
Some clients may be skeptical about the personal viability of a certain investment, as opposed to how it benefits the advisor.
If an investment truly is perfect for a client and gives you a great commission, so be it. However, as an advisor you have a fiduciary responsibility to make decisions and offer recommendations with your client’s best interest at heart.
If you feel a client may be skeptical of your intentions, take the extra time to explain why the particular investment aligns with their goals, or work together to find another alternative.
A great advisor takes a personalized approach to each and every client. That includes careful, active listening to understand your client’s specific needs and goals.
While you can streamline some of your client processes, there should always be a personal connection between advisor and client. Your client should feel like their situation is unique and you have a vested interest in their success (beyond what it can do for you.)
Understanding what clients avoid in their search for an advisor is just as useful as knowing what they look for.
Seven Figure Firm teaches advisors how to grow your business without having to put in the extra hours.