Acquiring clients is not easy. So why would you want to sack your clients?
Let us face it. You are a professional who is making a living out of guiding people in making appropriate choices and it is perfectly reasonable that in lieu of your services, you are compensated adequately and given due respect. But at times this happy equilibrium is not maintained.
Rather than continuing to waste your productive time on such clients you may do well to end your relationship with them.
Here are a few situations where it is advisable for you to relook at continuing with these clients.
Your client has unrealistic expectations
You are an advisor, not a wizard. Your clients should not have unrealistic expectations over what you can actually deliver. Returns can be made only over a time horizon. Though you might strike it big quickly with that occasional investment decision, there is no way you can generate abnormally high returns in a short period consistently. Many people do not understand that if you have to reap the benefits of investment, you have to be in it for the long haul.
If it’s quick and easy money that a client wants, see if you can educate him so that his/her expectations are more realistic. You could show him a few case studies detailing how people have made money have done so over a period by sticking to their investments. Normally, people come around, appreciate the advisor’s viewpoint and stay invested. You have to ensure that your clients understand that your financial plan will take contingencies into account, but it cannot be foolproof. There would be instances when an unexpected market development might throw your plans off gear. But a few clients might continue to have unrealistic expectations over what you can deliver. If repeated convincing does not change their viewpoint, it would be a better idea to part ways.
Your client does not value you, your time, and your efforts
You always make it a point to start your meetings on time. But your client keeps you waiting—and this seems to keep happening for almost every meeting. Or else, they are ‘high maintenance’ clients who take up too much time and energy without commensurate business. These clients could for instance, call you up a number of times on the same trivial issue, even after you have attended to the issue. At other times, they treat you as an errand boy. Not only is this behavior unprofessional, your daily operations will also be affected. With such clients, you must first demonstrate the value that you add to their lives through your skills and time. For instance, talk about your contribution to them and offer evidence. In spite of this, if you feel that the message has not gone through, it may be better for you to relook at your relationship.
Your client does not trust you
The advisor-client relationship is based on trust. When you recommend a particular investment strategy, it is done keeping the client’s best interests in mind. But if your client keeps raising objections all the time about all your decisions, it will be impossible to do business with him. First, you must start with some introspection about your style – are you too pushy, are you patiently explaining the rationale behind each plan and investment recommendation, etc. If required, make changes to your style so that the client has more faith in your approach. However, if you feel that the trust deficit continues despite your best efforts, it could be better for you to part ways.
If you have to part, make the process amicable
Nobody looks forward to a break-up. But if you have to part, ensure that it is done in a professional manner. If possible, discuss the issue politely but honestly. If you would rather take a more diplomatic approach, please inform your clients that after reviewing your book of business, you have decided to focus on a smaller client base. Wherever possible, offer to connect them with a few other advisors – while you might have not been able to work out a successful relationship with a particular client, but you may know a few advisors who would be able to do so. In all cases, ensure that there is a smooth transition period. So, even if you have to let go of a client, your reputation should not suffer.
Key takeaways:
- Situations where your contribution and efforts are not rewarded require that you evaluate if it is worth continuing a relationship
- Before parting ways, try to explain your view point
- Handle break-ups tactfully and in a professional manner
(Have you ever given up on a client? Do let us know).
