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With inflation, the economy, interest rates, and many other factors on the minds of clients, their desire for emotional security has never been higher.
A recent PWC study showed that 80% of what clients value even more than performance is emotional security. (They know you cannot control the market.)
Consequently, many people are currently going through a reevaluation of their relationship with their advisor.
The number one area that is causing emotional distress with clients is the lack of consistent structured communications. According to the respected Pew Research firm, 70% of top clients depart because of a lack of proactive thoughtful communication.
This is something that you as an advisor can control. My experience is that many advisors profess to a client that they will be communicating regularly.
But too few possess a calendared communication plan that ensures every “A” and “B” client is getting regular proactive communication. Far too many rely on a client coming to mind and telling staff to set a call with them as we haven’t talked in a while.
In these times, clients need to hear from you regularly so they know you are there for them and can feel emotionally secure that they are with the right advisor.
Rob Knapp authored a terrific book, The Supernova Advisor. He suggests “A” clients receive twelve contacts a year, with four of them being quarterly reviews of which two of those are face to face. While this may not be the frequency your clients want, the questions are:
- What frequency of communications do they want?
- Will you use the technology available today to populate your calendar so no client leaves because the communication they are receiving from you is lacking THEIR PERSPECTVE.
Go forth and communicate, you and they will be glad you did.