Establishing strong relationships with your high net-worth clients can protect your book from your competition.
“Competitor proofing extends from trust,” says Duncan MacPherson, co-founder and co-CEO of Pareto Systems in Kelowna, B.C. “And trust stems from how the advisor and his or her team interacts with their clients.”
Follow these five tips to retain your valued clients:
1. Show your experience
Prove to clients that you deserve their trust. Demonstrate that you have the required experience and qualifications.
Credentials such as designations, degrees and diplomas show clients that you are a credible voice of reason, MacPherson says, especially when the markets are turbulent.
2. Keep in touch
Create a consistent communication strategy, MacPherson says, to reach out to frequently your high net-worth clients.
Establish a call-rotation schedule so that you are always contacting clients. Every day, speak with two or three clients to find out how they are doing and whether they have any questions or concerns.
To maximize your time, he adds, focus on the top 20% of your book for these calls.
Other communication initiatives, such as e-newsletters, are complementary, he says, and do not replace phone calls or in-person meetings.
3. Get to know them
Start conversations that will generate trust — not sales — between yourself and your clients.
MacPherson suggests using a strategy called “FORM” for client conversations. FORM stands for: family, occupation, recreation and money.
Based on this strategy, during a 20-minute phone call, you might spend the first five minutes talking about the markets or money, he says. The remaining time is focused on the client’s children or how his or her business is going.
4. Maintain your standards
Keep your tone and demeanour consistent when talking with your clients.
Whatever happens, always maintain the same outlook and expectations, says MacPherson. Don’t switch, for example, from a stewardship mentality to being a salesman. Doing so will only confuse clients and break down any trust you’ve established.
5. Give appropriate individual gifts
If you plan on giving a gift as a client-appreciation gesture, make sure it’s relevant.
For example, sending a decanter to a client who is an oenophile demonstrates that you listen, says MacPherson. On the other hand, if you give a Starbucks card to a client who has told you he or she has stopped drinking coffee, then it may appear that you are just going through the motions.
IE