The Fact:
Eighty per cent of financial advisors have some clients they do not meet in a typical year. For that group, there is limited or no proactive contact with 22% of clients.

The Implications:
Lack of contact puts the average practice at risk and that risk can be substantial. According to industry research, about 10% of clients plan to decrease use of, or stop using, their current advisor; lack of contact is the number one reason for that defection. And contrary to popular belief, these clients don’t represent your smallest accounts. In fact, they are typically right in the middle, representing the average client size (based on assets).

The Idea:
Establish a baseline level of service for each client segment, even if that baseline is as low as one phone review a year for smaller clients. If a client is unprofitable at this level of contact, then it may be time to re-evaluate the relationship. Remember, however, that client perception is what counts; clients may think service is poor despite your best efforts to contact them for meetings. If a client routinely neglects to return your calls, follow up with a template letter that outlines the importance of meetings, your commitment to service and your expectations of the client. You will, at the very least, reiterate your commitment and create a paper trail.

The Next Step:
The Business Success Kit provides you with the tips, tools and templates that you’ll need to enhance practice productivity and profitability. It’s the most practical and comprehensive guidebook available for financial advisors. For more information, visit www.caifastore.com and click on the Business Success Kit.