Strategies for Handling Resistance and Rebuilding Long-Term Engagement with Dormant Clients

Strategies for Handling Resistance and Rebuilding Long-Term Engagement with Dormant Clients

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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How to Reconnect with Dormant Clients: Rebuilding Lapsed Relationships

How to Reconnect with Dormant Clients - Rebuilding Lapsed Relationships

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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Unearthing the Buried Treasure: How Financial Advisors Can Uncover Hidden Objections

How Financial Advisors Can Uncover Hidden Objections

Financial advisors play a crucial role in securing a client’s financial future, but beneath the surface of numbers and charts lie unspoken anxieties and reservations—hidden objections that can derail even the most meticulously crafted plan. Unlike their vocal counterparts, these objections can linger beneath the surface, hindering progress and leading to missed opportunities.

However, by employing specific techniques and fostering a trusting environment, advisors can unearth these hidden objections and build stronger, more successful client relationships.

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5 Essential Things New Financial Advisors Must Know to Be Successful

5 Essential Things New Financial Advisors Must Know to Be Successful

There’s never been a better time to be in the financial advisory business. And if you’re new to the industry, the opportunity is limitless—if you’re adequately prepared. But if you aren’t, the journey can be a long, slow, uphill slog with a minimal chance of success.

Too harsh? Not at all. It’s a fair warning to anyone who gets into this business with little or no understanding of what it is about and what it takes to succeed.

Historically, the advisory business has attracted young people enamored by numbers, analysis, and their application in the investment world. And most are motivated by the desire to help people achieve financial security. Here’s the deal, though—you can’t help people if they don’t trust you. You can’t build a practice if you can’t convince people to follow your advice. You can’t stay in business if you don’t prospect, and prospects won’t gravitate toward you if you don’t stand out.

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‘Why Should I Do Business with You’: Crafting a Compelling Response to a Prospect’s Critical Question

Why Should I Do Business with You - Crafting a Compelling Response to a Prospect's Critical Question

For every financial advisor, the question, “Why should I do business with you?” hangs heavy in the air during initial consultations, whether spoken or not. It’s a pivotal moment, a crossroads where trust and value must intersect to convince the potential client to take the next step. While tempting to launch into a self-promotional monologue, a nuanced, client-centric approach is critical to unlocking that coveted “yes.”

It’s crucial to understand that a prepared, cookie-cutter approach, such as reciting your value proposition, won’t work. Every prospect is unique, so it’s essential to adapt your approach based on their specific circumstances and needs using the following framework:

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5 Ways Financial Advisors Can Establish Credibility and Build Trust

5 Ways Financial Advisors Can Establish Credibility and Build Trust

We’ve made no secret of the fact that a trust deficit exists between the public and the financial services industry. Advisors, new and experienced, must work consciously and deliberately every day to overcome it. The challenge for advisors is they could be the most trustworthy person in the world, but without credibility, there can be no trust.

There could be trust, but it might only be fleeting without proof that it’s genuine. That’s where credibility comes in. The building blocks of trust include honesty, transparency, reliability, consistency, competence, empathy, authenticity, and vulnerability—traits that, when demonstrated by actions, create credibility. An advisor’s credibility is bolstered even more when both parties feel they benefit mutually with a vested interest in each other’s success.

Here are five ways advisors can establish credibility by demonstrating the building blocks of trust.

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How to Regain the Trust of a Client After a Disagreement

How to Regain the Trust of a Client After a Disagreement

Can you think of any relationship that has never experienced conflict—where two people with the best of intentions fail to see eye to eye on an issue? Such is the nature of relationships, even where there is a track record of trust. You expect it in a marriage and even among colleagues—so why not between a financial advisor and their client?

It happens more than you might think. Financial advisors are wired to be analytical, while clients are often driven by emotion, which sets the stage for many “reality vs. perception” standoffs.

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Why Mediation Skills Matter for Financial Advisor Success

Why Mediation Skills Matter for Financial Advisor Success

When most people think of mediation and negotiation, it typically refers to lawyers or third parties who facilitate dialogue between two or more parties to help them reach an agreement. In practice, financial advisors sometimes find themselves in the same position, having to resolve conflicts between a client’s family members or within their advisory team, where it’s essential to find win-win solutions.

Disagreements about money are common among married couples. Money conflicts are often rooted more deeply in people’s attitudes and beliefs about money, or, in some cases, money is not even the primary issue. However, in almost all cases, it involves two or more people who don’t know how to engage in productive financial conversations.

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Advisors Who Don’t Want to Sound “Salesy” Need to Master Soft Skills

Advisors Who Don't Want to Sound Salesy Need to Master Soft Skills

Many financial advisors don’t like to be thought of as salespeople. In fact, they despise it. In part because they work hard at earning the distinction of being an “advisor.” Also, the public has been conditioned to avoid salespeople masquerading as financial advisors. But in reality, anyone in the business of building a clientele and offering services has to be able to sell.

To convert prospects into clients, advisors must sell themselves and then their solution. To make money, they must get their prospects and clients to act on their solution, which requires sales skills. Most advisors understand that, but their greatest fear is coming across as a salesperson or sounding too “salesy.”

If that is your fear, let me put your mind at ease. First, it’s important to understand what it means to be “salesy.” That term is generally applied to a high-pressure approach that makes prospects uncomfortable. People don’t want to deal with salespeople who are pushy and don’t listen to them.

That’s not you.

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How to Raise Conversations Your Clients Don’t Know They Should Have

How to Raise Conversations Your Clients Don’t Know They Should Have

Most clients hire a financial advisor because they expect him or her to know more than they do about planning their future. They willingly pay you to leverage your expertise to educate them and guide their financial decisions based on your understanding of their circumstances, goals, and concerns. They expect you to help them navigate obstacles that pop up unexpectedly.

Most clients don’t know what they don’t know, which is their greatest vulnerability. That means they don’t know enough to ask their financial advisor about things that could potentially impact them. If they’re left in the dark about such things, the financial advisor takes the blame when bad things happen. What is their defense when a client asks, “Why didn’t you tell me about that?”

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