Getting your clients to regard you as “indispensable” helps build client loyalty and can increase your referrals.
To become indispensable, you have go the extra mile to connect with clients personally, says Prem Malik, financial advisor with Queensbury Securities Inc. in Toronto. That means going beyond managing their investments.
“Becoming indispensible is especially relevant,” Malik says, “given that you have to justify your fees.”
Your goal should be to take an interest in your clients’ lives and earn their trust and confidence, Malik says. You become “their silent CFO,” he says, whom they can turn to for anything that has an impact on their finances.
Here are some steps you can take to become indispensible to your clients:
> Know your clients inside-out
Strive to know everything you can about your clients — including their family, their hobbies and their aspirations. You should allow them to feel comfortable talking to you about things that are unrelated to your role as their advisor.
“Let them know that they can call you about anything,” Malik says.
> Exceed expectations
Give your clients more than they expect from an advisor. You have to step out of the “familiar box” and show them that you care about their wellbeing, Malik says.
Recognize that each client scenario is different. You should be flexible enough to provide a range of additional services tailored to their individual needs.
For example, Malik says: “I review my clients’ group plans at work and make recommendations about their asset mix.”
This is an important service, he says, because many clients simply do not pay sufficient attention to the growth of their money in these plans and leave their contributions in money-market investments.
Malik says he also speaks to his clients’ children about money and sends them relevant material – although they might not be his clients.
“Clients appreciate the little things you do outside your normal role,” he says.
> Put your clients first
Always be responsive to your clients’ needs, in your role as their advisor, Malik says, and put them first. Communicate with them regularly and always follow up on things you promise to deliver.
“Be there when they need you most,” he says, such as when the markets are not doing well and clients have concerns. “If clients have trust and confidence in you, they are likely to be unfazed when markets turn sour.”
> Be transparent about fees
With the implementation of CRM2, you must be open about the fees you charge, Malik says. It is important to remind your clients periodically about the fees they are paying and what you do to earn them.
If your fee structure is set up in such a way that clients’ fees decrease when their assets reach a certain threshold, let them know when they reach that threshold. Clients will be particularly pleased with you if the decline in fees results from an appreciation in the market value of their assets.
> Host meaningful events
While there are several types of client events, Malik says, he likes to “break bread” with his clients. He hosts regular lunches and dinners with small groups of clients which, he says, are personal and “bring them closer.”
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