Managing the Relationship Archives - Page 2 of 17

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.

How to Reconnect with Dormant Clients: Rebuilding Lapsed Relationships

/ 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.

To Better Understand Your Client’s Goals, Listen Carefully to How They Express Them

/ by Don Connelly / Managing the Relationship / 0 comments

To Better Understand Client Goals, Listen Carefully to How They Express Them

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:

5 Client Behaviors Financial Advisors Must Put a Stop to and How

/ by Don Connelly / Managing the Relationship / 0 comments

The widely studied field of behavioral finance has firmly established that many investors’ mistakes can be attributed to their emotions, which can cloud their judgment and overpower their patience and discipline. Ben Graham, arguably one of the best investors of all time, said, “The investor’s chief problem—even his worst enemy—is likely to be himself.”

Many financial advisors think their most important function is to devise financial strategies and help their clients allocate their assets to help them achieve their financial goals. Certainly, that’s important. But that’s what advisors study and train for. It’s what they do.

However, I would argue that the most essential function—the critical role advisors must fulfill—is that of a financial coach. Above all else, a financial or investment strategy rooted in sound practices and principles requires discipline and patience. However, when emotions cause a client to break from the strategy, you are the only person who can keep your clients anchored and coach them through the momentary instinct to act irrationally.

Addressing these behaviors proactively can help your clients stay on track and make sound decisions. Here are five common client behaviors that financial advisors should be prepared to address and strategies to manage them effectively.

The Elevator Repair Story

/ by Don Connelly / Managing the Relationship, Prospecting / 0 comments

I met an Advisor at Merrill Lynch in Detroit who told me a very interesting story.

Listen to the audio episode or read the transcript below, adapted from the video, to learn an important lesson about client service.

Explaining the Nature of the Relationship (Acapulco Cliff Divers Analogy)

/ by Don Connelly / Managing the Relationship / 0 comments

“Mr. and Mrs. Client, I want to give you a word of caution in the event we experience volatility and turbulence. Investing money can and often does feel counterintuitive. There will be times when I urge you to add money to your account when the market is going down. That’s not going to feel right to you even though that’s exactly the time we should be adding to your account. It’s important that you understand why I would do that. May I tell you a story?

Watch this video or read the transcript below, adapted from the video, to learn a great story and analogy to help cement the relationship with a client.

Understanding Why Clients Might Seek a Second Opinion in Financial Planning and How to Avert It

/ by Don Connelly / Managing the Relationship / 0 comments

If you’ve been in this business long enough, you’re bound to encounter a client who wants to get a second opinion on some of your advice or a strategy you’ve developed. There’s no sugar-coating it—that can feel like a low blow—questioning your expertise and even your integrity.

While it might feel like a vote of no confidence, it’s often a symptom of a deeper need. Understanding these reasons and fostering a solid client relationship can help advisors minimize the need for external validation.

5 Effective Ways Financial Advisors Can Educate Clients

/ by Don Connelly / Managing the Relationship / 0 comments

Even though overeducating your clients can intimidate or overwhelm them into analysis paralysis or lost trust, still, one of your critical roles as a financial advisor is empowering your clients to make informed decisions.

Financial advisors who prioritize client education foster trust and instill confidence in their clients. The more trust and confidence your clients have in you and your advice, the more enduring the advisory relationship will be. But you must walk the fine line between overeducating your clients and empowering them with the right amount and type of financial literacy.

Here are five of the most effective ways financial advisors can educate their clients:

Decoding Doubt: 6 Non-Verbal Cues Clients Might Be Giving You That Signal a Trust Deficit

/ by Don Connelly / Managing the Relationship / 0 comments

Trust is the bedrock of any successful financial advisor-client relationship. But how do you know if a client truly trusts you, especially when they might not explicitly say it? Beyond the spoken word, clients often communicate their feelings through non-verbal cues. Learning to recognize these subtle signals can help advisors address underlying concerns and build stronger, more trusting relationships.

Three Decisions People Make When Choosing an Advisor

/ by Don Connelly / Managing the Relationship / 0 comments

When mom and dad sit down with you for the first time, they want to get to know you. They want to do business with someone they like and trust and someone who is making the right suggestions. They don’t want to do business with the Mr. or Ms. Financial Advisor you. They want to do business with the real you.

Watch this video episode or read the transcript below to learn what people want to know when making the decision to work with you or move on.

The Perils of Lacking Empathy: Why It Matters for Financial Advisors

/ by Don Connelly / Managing the Relationship / 0 comments

Nothing can form a human connection quite like the genuine expression of empathy. That human connection, which is the basis of trust in a relationship, is what clients want from their advisors. Failure to make that connection quickly can drive clients into the arms of a more empathic advisor.

Why empathy is so powerful

Empathy is the ability to see the world through someone else’s eyes, understand their emotions, and connect with them on a deeper level. But to your clients, it’s much more than that. When you express genuine empathy with a client, they feel like they are the most important person in your life at that moment. You took the time to step inside their shoes, walk around, and make them feel understood without judging them.

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