In this article, we discuss why adopting a client-centered approach is so important to be a successful financial advisor.
“What is good for the client is also good for the firm.”
-Thomas Rowe Price, Jr.
As an advisor, the only way to be successful is keeping the client in focus at all times.
Client-centeredness basically means that the client comes first. As an advisor, your job is to help the client in achieving his/her goals by managing his/her finances. Your personal goals as a businessman should be secondary. Your aim is to give the client the best solution for his needs.
You may choose to skip this and adopt a different philosophy. But then you may lose business to other advisors who focus more on their client requirements because that is eventually what the client pays you for.
Consider your client first, whenever you frame a policy or take a decision pertaining to your business. A very obvious thought that will crop up:‘are we sitting here for charity?’
But one must understand as advisors, what we want. We want a loyal and increasing client base. If we follow a client-centered approach, we shall attain our clients’ trust, his loyalty and positive word of mouth which, in turn, will bring in new clients – a self-sustaining model. This is the perfect recipe for a successful business.
Let’s take an analogy: you want to get your clothes stitched and there are ten tailors – all offering you the same designs. There is a very high probability that you go to the tailor who gives you the best fit, and stiches the clothes exactly the way you want them. For this, he needs to listen to your specifications, understand your body type, suggest what designs will suit you and, only then, will he be able to design a dress that fits you perfectly.
An advisor is no different, in the sense that clients come to an advisor who can give them the best solution, customized exclusively for them.
To provide the best-possible solution, the advisor must understand the needs of the client. He should take note of the fact that each client is different, has different needs and requires a suitable solution. Such a customized solution creates a happy client.
It generates the client’s trust in an advisor. Client’s trust is indisputably the most sought-after commodity in this industry and you cannot just get it, it’s something that has to be earned.
We all need clients that trust our ability to manage their finances at every swing in the market. This creates customer loyalty. In times of crisis,it helps to focus on these clients than wasting your time in unproductive activities like handling angry clients on phone.
A happy and satisfied client gives you the most effective form of publicity – the word of mouth. It gives you the advantage of positive impression, which fetches you new clients. Client conversion becomes a cakewalk if the client has heard well about you from people known to him.
To maintain your client-centered approach, you have to stop working for clients who do not fit into your frame of working. For instance, clients who will not revert to any of your calls or email, hold unrealistic expectations, ignore your advice etc. Even though, temporarily, it implies loss of revenue but that is a cost you will have to pay to prosper in the long run.
It’s better to cater to a small number of customers, you may have a target segment rather than catering to clients that you cannot service satisfactorily. Unsatisfied clients will do more harm than good. The focus should not be on the number of clients - you should take only that many which you can provide personalized service to.
Here I would like to give a word of caution that it is your job to tell the client: how you work and what to expect from you.
Finally, as an advisor you must understand that client-centered business may not be rewarding enough from the first transaction, the first client and/or the first quarter. It might be a daunting task initially but, in the long run, all this will pay you off beyond your expectations.
