Worried and stressed because of nagging and angry clients? Read on to find out what you need to do to deal with such clients.
Not all clients exhibit similar behavioral traits. Some clients can be less demanding while others can really test your nerves. Handling difficult clients is a challenge in itself and as an advisor you need to learn to deal with them smartly.
Difficult clients are generally anxious, nagging and confused. These clients are likely to vent their anger when they suffer losses on their investment even if you had apprised them about market risks. Experts say once a person gets angry about a loss, it’s very difficult to tackle him/her by negotiation.
Cafemutual spoke to leading financial advisorsto get their perspective on how to handle difficult clients.
First of all, advisors must manage client expectations. It is better to err on the side of caution rather than paint a rosy picture in order to land business. Under promise and over deliver.
Vishal Dhawan of Plan Ahead Wealth Advisors feels that the emotional and rational part should be segregated while dealing with difficult clients. He suggests that advisers should understand the natural behavior of clients in an event of any loss.
Vishal emphasizes the need to share financial data more extensively with such clients so that they are up to date on their investments and are not caught by a surprise when they see their portfolios in red. “You should apprise your clients regularly on market conditions. This will prepare them mentally to face any eventuality where they may have to suffer a financial loss,” suggests Vishal. He also recommends that advisors should keep records of conversation with clients so as to avoid any disputes later on.
Kartik Jhaveri of Transcend Consulting observes that sometimes HNIs or well-educated clients try to interfere in your work and give unnecessary suggestions. Kartik says “Firstly advisers should decide whether they want to continue with such clients or not. It’s better to stay away from them because they might create problems in future.” According to Kartik, “To retain difficult clients you should learn to face the music even if you are right and wait till the matter settles down. Afterwards, you should write an email or letter to your clients. You can also invite them for a dinner so that you can talk to them in a healthy environment.”
Ranjit Dani of Think Consultants says that advisors should keep calm while dealing with difficult clients. “Sharing similar instances where clients have undergone difficult situations will help them view their situation from a broader perspective. Also, it’s better to educate them on how financial markets work and the volatility associated with markets before starting any business relationship,” feels Ranjit.
Harshvardhan Roongta, CFP Roongta Securities recommends a three-step process to deal with angry clients. “The first and foremost step is to listen to your client carefully and try to find out the real problem for their outrage. Even if you had told him about risks involved in the financial investments they will definitely forget your disclosures and vent fury on you. The second step is to show them that you are concerned about their losses. Finally, the most important step is to take corrective measure to solve their problems,” advises Harshvardhan.
Summing up
- · Under promise and over deliver
- · Educate clients on what they have invested in
- · Update clients and alert clients before things turn bad
- · Reach out to clients who suffered loss before they approach you
- · Present similar case studies of past event.
- · Keep records of conversation
