One of the persistent problems faced by an advisor is having inactive clients. These clients usually are very enthusiastic in the start and then you never hear from them again. While their investment might grow, you know that growing wealth is only possible with regular investing behaviour.
Here are a few simple ways to ensure your client starts investing again.
‘Hi! Did you know your investment is working well?’
Calling up your client to tell how well his/her portfolio is performing now is a good way to renew your relationship. After all, who is not happy to know that a small amount they invested years ago has worked well for them?
Ritesh Sheth of Tejas Consultancy, who has 7,000 clients, says that when his clients hear how well mutual funds have worked for them they usually start investing with renewed enthusiasm.
“I usually call them after I notice they have made no new investments for four or five years. In the meanwhile, since they have not touched their current investment, it would have grown to a sizeable amount. For instance, I recently called a client to tell him his Rs20,000 is now worth Rs50,000. He asked me if he needs to rebalance his existing portfolio and requested me to initiate SIP for him,” Ritesh adds.
‘How old is your child now?’
Another way to reconnect with estranged clients is around their life events. Wish them a happy anniversary or birthday, ask them how they are doing, and gently suggest investing.
Amol Joshi, of Plan Rupee, insists on the importance of advisors maintaining an extensive database.
“In your initial interactions with a client, try to get as much information as possible. Small things like children’s birthdays, wedding anniversaries, can prove game-changers in the future. Even if the client does not make any investments for a long time, reconnecting with them on these occasions will boost your relationship. After that you could suggest that they can look at starting a child plan on the joyous occasion so that it becomes a valuable gift for the kid,” he says.
‘Did you know you could save on tax?’
Amol also suggests dormant clients to look at tax saving schemes of mutual funds like ELSS. He feels that by reiterating this message in December and January, an advisor can catch the attention of even the most evasive client.
“That is the time most people start planning saving some amount on tax outgo. Out of the blue, they realise that they are paying a huge chunk of their income as tax, seeing such mails usually motivates them to call back and enquire how they can save on tax,” he says.
‘Do you have a problem?’
The time proven strategy to connect with a client who has not been investing is to find out what is stopping him. Ritesh feels that chatting up with inactive clients and taking a keen interest in how their life is, forms a crucial part of reconnecting. “Often clients are unable to invest for a long period of time because of some unforeseen financial crisis. Buy asking them what the problem is, an advisor cannot just give a fresh solution, but also gain their confidence by being there when they need you the most. This, however, can be possible only if you keep track of all your accounts,” he says.