/ 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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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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To Better Understand Your Client’s Goals, Listen Carefully to How They Express Them
/ by Don Connelly / Managing the Relationship / 0 comments
A critical aspect of advising clients is to ascertain their financial goals correctly. If you or your clients don’t genuinely understand the goal, your advice could be dangerously off base, and you could lose your client’s confidence.
Clients typically come to financial advisors with various goals, but they might articulate them in nuanced ways, reflecting their concerns, values, and life circumstances. Your role as a financial advisor is to listen carefully, ask probing questions, and translate these expressions into actionable plans created around their biggest concerns, preferences, and priorities.
Here are five common financial goals clients have and how they might express them differently:
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Three Analogies to Use in Volatile Markets
/ by Don Connelly / Storytelling, analogies and power phrases / 0 comments
Obviously, the stock market’s volatile and you’re going to encounter volatility your entire career. It’s the normal part of the market. Even though volatility is normal, it makes clients very nervous. Fear is a bigger emotion than greed.
One of the challenges for you in volatile markets is that clients can slip into a behavior called anchoring. When clients give you a specific amount of money, that becomes the anchor amount of their portfolio. They refer back to that initial amount when evaluating any ups and down in value. Let’s say hypothetically that a $100,000 portfolio falls in value to $90.000. Right away, they think to themselves, “Oh, it’s broken.” Something’s wrong.”
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Changing Negative Perceptions and Attitudes as a Financial Advisor
/ by Don Connelly / Best Practices / 0 comments
Most people become financial advisors because it is one of the more rewarding careers, indeed in terms of monetary rewards, but also working in the service of others to help them achieve financial security and long-term prosperity. However, many advisors struggle with aspects of their job that can lead to self-doubt, hesitation, and guilt.
These negative emotions often stem from deep-rooted perceptions and attitudes that can negatively impact client relationships and hinder professional growth. For example, for experienced advisors who become good at what they do, the job gets easier—almost too easy.
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Where Financial Advisors Can Get Help Building Their Practice
/ by Don Connelly / Best Practices / 0 comments
Few careers are as demanding as building a successful financial advisory practice. In addition to acquiring essential financial knowledge, financial advisors must develop solid business acumen, hone their soft skills, and work tirelessly to build their clientele while consistently seeking improvement.
This business is not for the faint-hearted, and it’s foolish to think you can do it on your own. I don’t know many successful advisors who made it, especially when starting out, without the benefit of a support system, whether it’s a mentor, coach, accountability partner, or the comradeship of an advisor community.
Each avenue offers unique benefits to help you reach the next level, regardless of your business stage.
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