August 14, 2023 / by Don Connelly / Managing the Relationship / 0 comments
We spend a lot of time and space here harping on the importance of client communications because, more than anything else you do in this business, it can make or break you.
We’ve discussed that 72% of clients who fire their financial advisors do so due to poor communication. We’ve pointed out studies that show clients value solid communications the most in an advisory relationship, yet many feel they’re not receiving it.
We’ve also outlined the reasons why it’s critical to build a systematic communications structure designed to keep your clients engaged, cultivate loyalty, and instill confidence in your advice and then provided a framework for building it.
Above all, we’ve stressed the importance of continuously working on your communication and requisite soft skills for building trust and solidifying your relationship.
However, all that will do you little good if you don’t recognize the communication challenges you face on a daily basis, especially the communication breakdowns that lead to conflicts, such as miscommunications, misunderstandings, and a lack of clarity.
Here are five of the most common communication challenges financial advisors must recognize and overcome to build and maintain solid client relationships:
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In this category you will find blog posts about clients relationship management – including but not limited to establishing trust, building a relationship, ending an advisor-client relationship, and more.
The Significance of Ethical Practices in Maintaining Trust and Integrity
August 21, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Most financial advisors consciously try to do the right thing always. However, most people are sometimes prone to error, which is only human. The reality is that advisors, through no fault of their own, sometimes find themselves in situations where conflicts between ethical principles, client interests, and regulatory requirements can create ethical dilemmas.
The challenge for advisors is that they have to overcome a huge trust deficit with clients and prospects. To earn and keep their trust, they must constantly be hyper-aware of their actions and how they may be perceived, whether an ethical breach is intentional or not. That requires having a conscious and deliberate strategy to resolve any potential conflict.
Here are the most common ethical dilemmas faced by financial advisors.
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Addressing Communication Breakdowns: 5 Common Communication Challenges Financial Advisors Face Today
August 14, 2023 / by Don Connelly / Managing the Relationship / 0 comments
We spend a lot of time and space here harping on the importance of client communications because, more than anything else you do in this business, it can make or break you.
We’ve discussed that 72% of clients who fire their financial advisors do so due to poor communication. We’ve pointed out studies that show clients value solid communications the most in an advisory relationship, yet many feel they’re not receiving it.
We’ve also outlined the reasons why it’s critical to build a systematic communications structure designed to keep your clients engaged, cultivate loyalty, and instill confidence in your advice and then provided a framework for building it.
Above all, we’ve stressed the importance of continuously working on your communication and requisite soft skills for building trust and solidifying your relationship.
However, all that will do you little good if you don’t recognize the communication challenges you face on a daily basis, especially the communication breakdowns that lead to conflicts, such as miscommunications, misunderstandings, and a lack of clarity.
Here are five of the most common communication challenges financial advisors must recognize and overcome to build and maintain solid client relationships:
Read more
How to Turn Data Collection into a Process Your Clients Will Appreciate
May 22, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Financial advisors love data—until it’s time to collect it from a new client. Advisors know that data collection is an essential component of the planning process, without which they can’t get an accurate picture of their client’s current situation. But mining all the critical data needed to connect current circumstances to future aspirations can be tedious—for both advisors and clients.
It can also be a point of tension in a new advisory relationship, as new clients may still be working through trust issues. Advisors must understand this and continue working fervently to earn their client’s trust by expertly shepherding them through the process. While getting the data is important, advisors need to use this moment as another opportunity to engage their clients on a deeper level, focusing as much on the qualitative side as the quantitative side of data collection.
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Goal Setting: Not Just About the Numbers. It’s About Emotional Connections.
May 15, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Goal setting is the second step of the client data-gathering process —unquestionably the most critical step in solidifying the client relationship and the key to setting your clients up for success. Beyond offering the technical expertise to help clients navigate the complex realm of financial planning, the most valuable service financial advisors bring to the table is helping them align the use of their resources with the things that are most important to them.
Yet even though advisors are well-positioned in this stage of the relationship to have these critical conversations, encouraging their clients to discuss their financial goals and understanding on a deeper level why those goals are meaningful to them, is a significant challenge for many. They then wonder why the client later chooses to abandon their financial plan or the relationship.
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How to Get the Most out of the Client Data-Gathering Process
May 8, 2023 / by Don Connelly / Managing the Relationship / 0 comments
Next to the initial meeting with a prospect, data gathering is the most critical step in the relationship-building process. Of course, it’s also the most vital step in the financial planning process, without which advisors can’t analyze a client’s situation, make proper recommendations, and implement them. That’s well understood by most advisors. Less understood is the critical role the data-gathering step plays in increasing client engagement, building trust, and solidifying the advisor-client relationship.
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Clients not Giving You Referrals? Here’s Why That May Be
May 1, 2023 / by Don Connelly / Managing the Relationship / 0 comments
We devote a lot of space here on how to generate referrals, and with good reason. Generating quality referrals is critical to building a sustainable and profitable practice. Many of our articles address the ‘how,’ even addressing how to overcome the reluctance to ask for referrals. Based on my decades of experience, I’m confident that advisors who study those articles and incorporate the tips and practices into their process can generate more referrals.
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How to Motivate Your Prospects to Take Action Now
January 2, 2023 / by Don Connelly / Managing the Relationship / 0 comments
No doubt you remember the last car you purchased. If you’re like most people, you spent hours, days, maybe months researching, comparing prices, features and specs. You knew what you wanted but were hesitant to pull the trigger. Ultimately, it wasn’t the gas mileage, sporty interior, or five-year bumper-to-bumper manufacturer’s warranty that moved you to action.
While those are nice features and may be important to you, they’re not the reason you bought the car. The reason you acted was how those features made you feel. They made you feel smart, secure, and proud. You may even feel like a million bucks. The smile on your face as you drove your new car home was not from having made a good decision based on the car’s features; it was from how your decision made you feel.
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For Clients Expecting 5-Star Service, Exceptional Communications Is Not Enough—Proactive Communication Is the New Standard
December 5, 2022 / by Don Connelly / Managing the Relationship / 0 comments
Top financial advisors understand that superior client communications are paramount to building a successful practice. That is supported by a widely published survey by Financial Advisor Magazine, revealing that 72% of clients cite poor client communications as the number one reason they leave their financial advisor.
If 72% of clients expect exceptional client communications as a condition for staying with an advisor, it’s no longer a differentiator—it’s merely table stakes for advisors who hope to compete for their business. So how can financial advisors who do focus on elevating the client communications game stand out to clients with higher expectations of what five-star service should look like?
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Prospect Engagement Strategy for Creating Reasons to Call
November 7, 2022 / by Don Connelly / Managing the Relationship / 0 comments
I often hear from financial advisors who, for various reasons, are reluctant to contact prospects who remain in their pipeline. Many are hesitant to pick up the phone because they don’t feel they have anything new to offer, which, in their minds, would amount to an untimely interruption or even an annoyance. Best to avoid calling them, right?
That’s a quandary because if you want to increase prospect engagement with the hopes of moving them out of the pipeline, you actually have to engage them. It is also problematic because, as successful advisors know, prospects’ needs change over time, and the only way to win their business is to be in the right place at the right time, with the right message. That can’t happen if you avoid the calls.
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