/ 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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The Paradox of Financial Education: How Too Much Knowledge Can Cost You Clients
/ by Don Connelly / Best Practices / 0 comments
Financial advisors constantly walk a tightrope between empowering clients and overwhelming them. While financial literacy is crucial for informed decision-making, overeducating prospects and clients can backfire, resulting in the loss of an account. This phenomenon can be better understood by examining the psychology of financial decision-making and the delicate advisor-client relationship.
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Overcoming Information Overload: What Advisors Can Do to Help Their Clients
/ by Don Connelly / Best Practices / 0 comments
Living in the digital world, with its instantaneous access to information, has made us smarter and more empowered. In many ways, it has leveled the playing field for clients who now have access to much of the same information once only available to investment professionals. Information is so highly valued that it is churned out 24/7, accessible on any number of devices people carry around. For clients especially, this should be a good thing, right?
The barrage of headlines and hype around market events often leads to behavioral mistakes, like following the panicky herd over the cliff during a market selloff or frantically trying to buy into the market after a massive rally. Studies show it is the primary reason why investors consistently underperform the market.
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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