/ by Don Connelly / Managing the Relationship / 0 comments
Most people suffer from financial stress at some point—whether it’s dealing with high inflation or a volatile stock market. That’s to be expected, and we’ve provided tips on how financial advisors can help “de-stress” their clients.
However, when clients suffer from financial anxiety, it creates a new set of challenges for financial advisors. While stress can make a person worry about their financial situation, financial anxiety can be paralyzing, making it virtually impossible to move your client in any direction.
It’s easy to understand why a client might be stressed about something. Stress is typically triggered by identifiable external factors, such as a plummeting market or job loss. Because it is often tied to a specific event or issue, it usually subsides when the problem is resolved.
However, anxiety triggers are hidden beneath the surface, often with deep emotional or psychological roots. It may not be tied to a specific financial situation. Instead, it’s an emotional state influenced by fears of what could go wrong financially, even when there’s no immediate threat. If you can’t get to the root of the anxiety, you will be powerless to help your client.
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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.
4 Scenarios Where Active Listening Transforms Financial Advisor-Client Relationships
/ by Don Connelly / Managing the Relationship / 0 comments
Some advisors are natural communicators with inherent skills for demonstrating empathy, telling relatable stories, displaying a natural curiosity by asking open-ended questions, and translating complex ideas into terms clients can understand. Many advisors are not and must prioritize skill development if they are to have a chance at success.
Active listening is the most critical soft skill that must be developed and exercised because it’s where highly effective communication starts. If you don’t master your active listening skills, your communication efforts will likely miss their target. Without them, you’ll have trouble fully engaging your clients, providing insights that resonate with them, and fostering trust.
This post explores four specific scenarios where active listening proves invaluable, highlighting its transformative potential for advisor-client relationships. These examples demonstrate how active listening leads to better client understanding, stronger trust, and actionable insights that benefit both parties.
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Leveraging Behavioral Finance: Understanding Client Decision-Making Patterns
/ by Don Connelly / Managing the Relationship / 0 comments
Financial advisors looking for an edge in influencing their clients’ decision-making need look no further than behavioral finance. Behavioral finance is a game-changer for advisors seeking to deepen client relationships and drive better decision-making outcomes.
Understanding how psychological factors influence financial decisions can help you build trust and guide clients through the emotional and cognitive challenges of investing. When clients feel understood and supported, their confidence in their financial plan—and their advisor—grows exponentially.
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The Power of Open-Ended Questions for Financial Advisors
/ by Don Connelly / Managing the Relationship / 0 comments
Effective communication is the cornerstone of enduring and trusting relationships. For financial advisors, it’s the key to meaningful client engagement that fosters deeper discussions and stronger connections. At the core of meaningful engagement is asking the right questions.
Open-ended questions, in particular, can transform a conversation, moving it beyond stunted yes or no answers to delve more deeply into what matters to a client—to understand the “why” behind their thinking. Unlike closed-ended questions, which tend to limit responses, open-ended questions encourage an open dialogue full of insights advisors can use to tailor their advice in a way that resonates with the client.
Mastering the art of crafting and asking open-ended questions is critical to pinpointing client needs, concerns, and priorities while building trust and driving more successful outcomes for your clients.
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Building Rapport with Clients: Unique Strategies for Financial Advisors
/ by Don Connelly / Managing the Relationship / 0 comments
Of all the truisms associated with our industry, none is more valid than, “People do business with people they like and trust.” That’s why we devote a lot of space here to the importance of building rapport with clients.
We often discuss the need to master communication and soft skills, such as active listening, asking open-ended questions, mirroring body language and tone, telling stories, and showcasing empathy. That will never change as it forms the critical foundation for building rapport and trust.
We also discuss best practices, such as regular check-ins or sending holiday greetings to build client relationships. While these strategies work, they can sometimes feel impersonal or predictable. To truly stand out, it’s crucial to employ creative, lesser-known methods that resonate with prospects and clients on a deeper level.
Here are five innovative approaches to help you build meaningful relationships, earn trust, and foster long-term engagement.
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The Art of Active Listening in Financial Advising: Building Trust and Uncovering Client Goals Beyond the Numbers
/ by Don Connelly / Managing the Relationship / 0 comments
We’ve devoted a lot of space here to discussing the concept of “active listening.” Why? Because it’s essential for connecting with clients on a more meaningful level. Beyond merely listening, active listening is an immersive, empathetic approach that enables you to pick up unspoken cues, explore clients’ deeper motivation, and get to the crucial “why.” Active listening is critical to moving clients to take action.
Advisors who master active listening are able to transform the advisor-client relationship to understand and anticipate their client’s needs beyond the surface of financial data and gain insight into what truly matters to clients.
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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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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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