/ 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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Factors Financial Advisors Should Consider When Choosing a Fee Structure for Their Practice
/ by Don Connelly / Best Practices / 0 comments
Among the more critical decisions a financial advisor must make is determining their fee structure—what to charge clients and how to charge them. After all, the fee structure sets the tone for how clients perceive the value they receive from your services.
If clients feel that the fees are too high relative to the value provided, it can lead to dissatisfaction and attrition. Conversely, if they perceive your fees as fair, it can foster trust and long-term loyalty. However, if they are too fair, it could threaten your business’s bottom line and sustainability.
Choosing the proper fee structure is a delicate balancing act for advisors. It requires consideration of client expectations, business sustainability, and your own financial goals. Your fee structure should align with your business model and client base, leading to stronger client relationships and business success while fulfilling one’s fiduciary obligations to clients.
Here are the pivotal factors to consider when determining how to structure your fees:
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Why You Need to Encourage Your Clients to Ask Questions
/ by Don Connelly / Best Practices / 0 comments
As a financial advisor, you occupy a position of trust, guiding clients through complex financial landscapes. While knowledge and experience are crucial assets, an advisor’s success hinges on another critical factor: fostering a culture of open communication where clients feel empowered to ask questions. This often-overlooked attribute can unlock a multitude of benefits, leading to more effective financial planning, stronger client relationships, and, ultimately, a brighter financial future for the client.
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Addressing Communication Breakdowns: 5 Common Communication Challenges Financial Advisors Face Today
/ 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
Clients not Giving You Referrals? Here’s Why That May Be
/ 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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Thought Leadership May Be the Only Edge for Financial Advisors
/ by Don Connelly / Marketing Yourself / 0 comments
Clearly, the financial advisory industry is undergoing a major transformation. Technological advances and the democratization of investing has virtually commoditized financial advice to the detriment of advisors who continue to languish in brand obscurity. Until financial advisors can differentiate themselves as authorities in their field, most struggle to gain the attention of new clients or keep the attention of existing clients. Advisors who establish themselves as true thought leaders hold a distinct advantage in the race to add new clients and grow assets under management.
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Prospect Engagement Strategy for Creating Reasons to Call
/ 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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Not Getting Through to Your Clients? 5 Ways to Step Up Your Engagement
/ by Don Connelly / Managing the Relationship / 0 comments
Most financial advisors understand the importance of client communications. Those who don’t find out the hard way that poor or infrequent communications is the number one reason clients leave their financial advisor, according to a Financial Advisor Magazine survey. But what if you feel you have a deliberate client communications strategy, yet your clients seem to be unresponsive or not engaging with you at a level that gives you confidence they are fully on board?
That’s not a good feeling, and it should sound alarms if you hope to maximize client retention.
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5 Reasons Advisors Need a Well-Conceived, Systematic Communications Strategy
/ by Don Connelly / Managing the Relationship / 0 comments
Financial advisors are reaching a pivotal moment that will shape their future. An increasingly competitive landscape, fee compression, the commoditization of advice, and increasing client expectations make client satisfaction, retention, and referrals more essential than ever. As advisors struggle to differentiate themselves in a sea of sameness, I always reach back to the time-tested solution: good communication.
If you have been following my blog for a while, you’re familiar with my core belief that communication is vital to developing solid and enduring relationships. You simply can’t form trusted relationships without good communication.
Most clients don’t feel engaged with their Advisor
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Five Reasons Why Financial Advisor Should Include Direct Mail in Their Marketing Strategy
/ by Don Connelly / Marketing Yourself / 0 comments
In a digitally dominated world, your clients and prospects are overwhelmed by emails, text notifications, pop-up ads, and other forms of instant communication. With many financial advisors adopting a digital-first approach to marketing, it may be time for advisors to go back to the tried and true—direct mail. While it’s true that digital marketing has become the sleek and shiny way to attract clients, it may not be the most effective.
Direct mail is far from dead and, in fact, might be your salvation for reviving your lead generation. Here are five reasons why that may be.
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Advisors Must be Able to Lead Clients Through Emotional Struggles
/ by Don Connelly / Managing the Relationship / 0 comments
Last year during the COVID market crash was a golden opportunity for financial advisors to demonstrate their true worth to anxious clients as a coach and a counselor. Your greatest value to your clients is being there for them during times of financial stress and anxiety. Good financial advisors are prepared to handle the fallout of a severe market decline, holding their clients’ hands, and coaching them through their anxieties.
However, few advisors are as prepared when it comes to facing their clients’ personal emotional issues that can cause even greater stress and anxiety, leading to poor financial decision-making. Life events, such as the death of a spouse or family member, divorce or family rifts, a medical crisis, a job loss, or other major life changes are common. Yet many advisors aren’t prepared to help their clients face the issue, or worse, are unable to recognize when a client is struggling emotionally.
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