A white paper published by Association of Financial Advisers shares three ideas to increase closeness with clients.
A study done by Business Health of 12000 clients of advisers in Australia revealed that 73% of the clients felt that they have close business contact with their adviser and clients who think that they have close contact with their adviser score, on average, significantly higher than those who do not think so when it comes to client satisfaction.
Interestingly, the study shows that advisers who have been with clients for between 3-7 years that represent the greatest business risk. When compared to their peers who have only recently joined a practice or those long term clients who have been with their adviser for seven or more years, the clients in the 3-7 year duration band are generally more likely to feel as though they do not have close business contact with their adviser.
So how can advisors get close to their clients?
Continually remind them what you do
Clients sometimes mistakenly make the assumption that if there has been no action recommended, their adviser has done no work. Advisers need to continually remind their clients of all the things they do for them, even if the individual benefit to the client is not immediately obvious.
Also, clients don’t always remember the depth and breadth of solutions their adviser may be able to deliver. Case studies and third party testimonials are a great way to educate clients on enhancements to the service suite or to reposition existing products that may now be appropriate.
Conduct client reviews, not just investment/product updates
The review meeting is the ideal opportunity for advisers to re-engage with their mid-term clients and while many practices have invested countless hours examining the various elements of their review procedures and agonised over the content and layout of their review reports, clients continually tell us advisers often lose sight of what is most important - the client! We hear all too often from clients that while their adviser is very good at investment updates and product evaluations, in their mind, this does not equate to a client review.
First and foremost (and at the risk of stating the obvious), in the clients’ eyes, a client review must be centered around the client. It should be all about them - their family, their business, their goals, their dreams and their aspirations. While their money and their policies are obviously important, they should not be the sole focus of the review.
Position, position, position
This real estate mantra is, in our opinion, equally valid for the advice area - positioning is paramount. It is also absolutely essential for clients with around five years of tenure - advisers need to make sure they remain visible and top of mind. They need to continually “touch” these clients throughout the year and importantly, ensure all their communication pieces are personalized and relevant (blanketed, shot-gun communications often do more harm than good).
Successful practices communicate their messages through a range of different media - newsletters, emails, face to face meetings, seminars, telephone calls and now social media. The more frequently the adviser “talks” to the client, the more likely their message (Client Value Proposition) will sink in. And unless this occurs, it is most probable that the client will quickly forget just what it is that their adviser is actually doing for them.
Prepared based on a white paper released
by Association of Financial Planners. Study conducted by Business Health.
