/ by Don Connelly / Managing the Relationship / 0 comments
If you’ve been in this business for any length of time, you know the cost, in terms of time, effort, and money, of bringing in a new client. You should also know that replacing a client who leaves with a new client costs five to 25 times more than retaining an existing one. Client retention is crucial to building a sustainable and profitable business.
How about when clients go dormant? They’re still on the books as clients but less engaged for one reason or another. They may still take your calls, but not necessarily your advice. If you track such things, you may find they no longer visit your website or respond to your social media outreach. They may have even pulled some business from you, leaving some to keep the relationship alive.
From a business standpoint, they may as well be a “lost” client. You either have to replace that lost business or find a way to reconnect and rejuvenate the relationship. The good news is these clients already know and trust you, so it should take less effort than starting from scratch with a new client. Additionally, proactively reaching out to inactive clients can uncover fresh opportunities and refortify the foundation of your relationship.
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Essential Tips for Financial Advisors to Avoid Burnout
/ by Don Connelly / Best Practices / 0 comments
It can happen to the best of us if we don’t see it coming. Few professions result in a higher burnout rate than the financial advisory business. The convergence of high-stress client interactions, economic uncertainty, performance pressures, regulatory demands, and the sheer emotional toll of the work puts financial advisors at a higher risk of chronic exhaustion and detachment that can derail their careers and personal well-being.
For advisors, managing stress is essential for maintaining a healthy balance, which is crucial for sustainable success. Here are seven actionable strategies to help you prevent burnout while staying passionate about your work:
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Understanding Your Strengths and Weaknesses as a Financial Advisor
/ by Don Connelly / Best Practices / 0 comments
For financial advisors with ambitions of taking their practice to the next level, self-awareness is fundamental to their success. Knowing your unique strengths enables you to maximize the value you deliver to clients while understanding your weaknesses helps you address critical areas that may impact your effectiveness.
Continuous self-assessment to develop a clear picture of your strengths and weaknesses is essential in a fast-evolving industry where personalized service and superior client experience have become minimum expectations.
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How to Handle Unexpected Client Questions
/ by Don Connelly / Best Practices / 0 comments
As a financial advisor, it’s essential that your clients ask questions. It means they want to engage with you, and they trust your expertise. Every question a client asks is an opportunity to educate them, which is a good thing. When your clients are comfortable enough with you to ask questions, it’s a sign of a healthy advisory relationship.
But what if a client blindsides you with an unexpected question, one you didn’t see coming? The relationship could turn on how you handle the question. If you hesitate, appear uncomfortable, or try to avoid the question, you could find yourself outside the client’s circle of trust, at least for the moment.
However, if you’re prepared to manage these impromptu and uneasy moments with confidence and professionalism, you will reinforce the trust you’ve already built.
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Using Client Feedback Loops to Build Trust and Loyalty
/ by Don Connelly / Managing the Relationship / 0 comments
Wouldn’t it be great if you could read your clients’ minds to know how they feel about you and your service? If you knew what they were thinking, you could ensure you’re doing all the right things to exceed their lofty expectations, leading to stronger and more trusting client relationships. Fortunately, you don’t need to read minds. All you need to do is ask them.
Successful, customer-centric companies constantly ask their customers what’s on their minds through a mechanism known as a customer or client feedback loop, a system where they regularly gather, analyze, and act on feedback to improve their products and services. Successful, client-centric financial advisors do the same thing, enabling ongoing communication with their clients to help refine and enhance their experience.
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Strategies for Handling Resistance and Rebuilding Long-Term Engagement with Dormant Clients
/ by Don Connelly / Managing the Relationship / 0 comments
If you’ve been in this business for any amount of time, you’re probably building a nest of “inactive” or “dormant” clients. These clients were once actively engaged with your advice but have since drifted away for various reasons, including changes in life circumstances, a lack of consistent communication, or a bad experience. Whatever the reason, it may be time to “fish or cut bait” to either reengage with them or move on completely.
Keeping inactive clients on the books who have no intention of doing business with you is nothing more than a distraction or a false sense of security. They need to be let go. On the other hand, there may be some golden opportunities lying in wait, but they’re not likely to come to you. Either way, you need to take the initiative and find out.
Reconnecting with dormant clients can be challenging. When reaching out after a period of inactivity, you may face some resistance. Some clients may be hesitant to reengage, perhaps harboring concerns or dissatisfaction. For any chance of rekindling trust and the relationship, it’s vital to understand how to manage these reactions and rebuild the foundation for long-term engagement.
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What Makes an Advisor Successful?
/ by Don Connelly / Best Practices / 0 comments
I have been around Financial Advisors for so long that I have created hierarchies. I categorize advisors economically and professionally. I’ve done this for so long that I can usually spot a successful Advisor from across the room. Of course I get fooled sometimes, but not very often. I’m always a bit incredulous when I do this. What is it I spot?
Listen to this audio podcast or red the transcript below, adapted from the audio, to hear what I think makes an Advisor successful and what makes a successful Advisor.
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How Financial Advisors Can Use AI to Free Up Time for More Client-Facing Activities
/ by Don Connelly / Best Practices / 0 comments
Despite the shortfalls of artificial intelligence (AI) in the financial advisory business in that it cannot replace advisors as relationship builders, there are several ways advisors can embrace AI to achieve higher efficiency and have more time for the human element of the business.
We know that AI is rapidly transforming industries, and the financial services sector is no exception. Financial advisors are often overwhelmed by managing multiple tasks at once, especially when much of their time is consumed by administrative and back-office duties. And, with the increasing complexity of financial markets and compliance requirements, advisors must spend more time on data entry, paperwork, and compliance at the expense of more client-facing activities.
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Future-Proofing Your Financial Advisory Career: The Power of Soft Skills in an AI World
/ by Don Connelly / Best Practices / 0 comments
Financial advisors are bracing for the “next big thing” as artificial intelligence (AI) is playing an increasingly prominent role. The rise of AI-powered tools and robo-advisors is automating many of the routine, data-driven aspects of financial planning, creating more efficient and accurate solutions.
Robo-advisors, for example, offer algorithm-based portfolio management services that can reduce the need for human intervention in certain advisory functions. AI tools can sift through massive datasets, analyze market trends, and generate investment strategies, all at a fraction of the cost and time it would take a human advisor.
However, as AI takes over the technical aspects of financial advising, the human touch remains irreplaceable.
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