Let us face it. Effective communication skills are essential in any walk of life. It holds even truer for advisors as you seek to build and enhance your relationships with clients. So whether it is your first meeting with a prospect or the hundredth meeting with an old client, each interaction requires you to communicate properly.
Listen more
In a sensitive matter like money, the client’s emotions are complex. For this reason it is important to listen and let them provide you with the information that will help you to do the best job possible. Of course there will be plenty of times where the clients should be doing the listening, but especially during the initial stages when you are just getting to know about their goals, be sure to place the most value in listening to what they have to say.
Be Patient with Your Explanations
A client does not have a great understanding of how to make investments work for them and that is why they are hiring you. When you are explaining things to them, be patient. Clients appreciate advisors who show patience and a willingness to explain things in a way that they can understand without putting them down.
Explain Your Reasons and Thought Processes
As you give your opinions throughout the process it is important that you also explain to the client why you are giving that advice. Clients will often have views that are different from yours. When such situations arise, rather than just complying with their wishes or doing what you feel is right; take the time to demonstrate to them your thought process and how it can yield better results for them.
Use Examples When Possible
One thing that can really help your communication, particularly when you are explaining things to clients or giving them choices, is to use real-world examples. Explaining options over the phone or through email can be challenging, and at times ineffective. By using examples to help, you can make things more clear for clients and get more accurate response and avoid misunderstanding.
Avoid Jargon
One of the biggest frustrations for clients is when advisors talk to them with terms and phrases that they don’t understand. Although you are working with numbers all the time and typically talk to your counterparts and AMCs in financial jargon, keep in mind that your clients will not have the same experience, so you should avoid using terms that they are unlikely to understand.
Put it in Writing
One of the reasons that email communication is effective is because it gives you and the client a record of what has been said. There may be times where it is necessary for customer service or for legal purposes to have a record of what was said, by whom, and when. For situations where you are talking to clients on the phone, it’s a good practice to summarize what was discussed and send a summary to your clients by email.
Keep it Professional
While you are communicating with clients, whether it is face-to-face, telephone, or email, always stay professional. Clients expect you to conduct your business in a professional manner, so avoid things that could cause them to see you differently. That’s not to say that you can’t get to know your clients on a more personal level, but remember that what you say and write can impact you advisor/client relationship.
