You work so hard to get new clients but how do you ensure that you keep them?
Recent research by PriceMetrix Inc. found that clients rarely leave their financial advisor in the first year. However, between one and four years, the client retention rate falls to 74%.
It is especially important to boost your service efforts during this critical time-frame as well as to demonstrate to the client that you are a trustworthy and caring professional whose knowledge and expertise will guide them to successfully reach their goals.
But what causes a client to leave an advisor? Research conducted by Financial Advisor magazine found the #1 reason that clients leave advisors is failure to communicate on a timely basis. The #2 reason was listed as failure to understand a client’s goals and objectives. Those clients who are not emotionally engaged with you turn to someone else when life transitions take place.
93.6% of the financial planning process is the behavioral management of the client.
So much of what you need to know about the client’s behavior and values is hidden well beneath the surface and takes more than a year to uncover. Yet starting in year 2 is when your relationship is the most vulnerable.
Knowing these facts, the number one action you can take is to incorporate a behavioral discovery system in your new client on-boarding process. Then build the key behavioral insights into your technology systems (such as CRM) so that they are at your fingertips for every client interaction.
For example, let’s take one simple aspect of your personality and see how that might be perceived by different client communication styles.
You are an outgoing advisor, high in energy and enthusiasm. You like to share stories of other people experiences because you feel potential clients can relate to the other people you have helped.
Your energy and fast paced talking could exhaust a client who is more informational in nature. It could sound “edgy” to someone who is more stability oriented. And to a goal oriented individual you may seem to go on talking forever without ever reaching a point.
And that is just one aspect of your personality. Are you still wondering why clients rate “failure to communicate” as the #1 reason they leave an advisor?
Now imagine incorporating a behavioral approach in your practice. Prior to your first meeting, a new client takes 15 minutes to complete a discovery process. Your CRM now contains the specific behavioral data points so you know how to adapt your style to conduct the perfect meeting, how to continually service them, and how to create a unique experience for every person in your office who interacts with that client.
You can create the level of service and communication that actively engages your clients at the very start of your relationship. Don’t risk losing your clients after the “honeymoon stage”.
Is Life a Game of Chess or Poker?
Weapon Sales Across the Globe Drive Safety and Security Theme
How to Sharpen Your Social Skills with Two Distinct Listening Styles
How to Find Your Authentic Voice
A Smile Is Vital to Your Message
Myth Busting the Settlement Industry
Advisors: Consider These Inexpensive Holiday Gift Ideas for Clients
7 Steps To Hire Great Team Members
An Acronym You Should Remember When Leading Change
India’s Booming Economy Expected to Firm Up Gold Demand
Investments20 hours ago
Global Equity Views 4Q 2018
Development20 hours ago
How To Deliver Value During Prospect Engagement
Financial Podcasts20 hours ago
How to Merge a CPA Firm With a Wealth Management Firm
Learn2 days ago
Millennials and Responsible Investing: Bridging the Generation Gap
Social Selling2 days ago
Is Spending Piles of Money on Marketing Just a Waste?
Building Smarter Portfolios2 days ago
Understanding Hedge Fund Replication
Insights3 days ago
Leaders: How Your Audacious Goal Can Actually Hurt People
Development3 days ago
Discouraged? Remember Why You Got in This Business