Have client relationships fallen on the back burner?
Business Health has identified four methods to foster strong client relationships, which start with regular communication and seeking feedback.
Financial advisers are balancing several competing business priorities on any given day, whether it be preparing for upcoming regulation changes, keeping up with artificial intelligence developments and managing operational costs.
Terry Bell, partner at Business Health, argues that the range of priorities advisers are juggling can be impacting the current state of client relationships.
“It seems to us that in recent times, the customary focus on client relationships is in danger of being relegated to the back burner as practices strive to balance their business priorities,” Bell said.
“We see fewer practices seeking client feedback while communication touch points have further reduced in terms of frequency and relevance.”
In order to cultivate closely connected relationships with clients, Bell put forward the following suggestions to advisers.
Document client information
According to Business Health, less than 10 per cent of advice practices keep a record of key relationship building data. This can include wedding anniversaries, birthdays, sporting preferences and charitable interests.
While these milestones may seem trivial, Bell encouraged advisers to not underestimate the power of remembering key events in a client’s life.
Engage regularly
Frequent, proactive and personalised communication with clients is a key component to building strong relationships, the partner said. However, just 27 per cent of firms reported that they contact their best clients 10 or more times per year, down from 33 per cent in 2019, Business Health previously found.
“Variety in the ‘how’ can be important, too. Clients value a proactive ‘reach out’ and ‘how are you going’ call, especially in times of uncertainty and challenge,” Bell said.
Seek client feedback
Reaching out to clients for feedback has fallen down advisers’ priority lists, with just 26 per cent of firms actively seeking feedback.
“A quiet client isn’t necessarily a happy client. While too few practices actively seek their clients’ feedback, those who do make the effort are invariably rewarded with insightful comments and suggestions.”
Focus on the review process
Finally, review meetings can be an adviser’s “moment of truth” to prove their value to the client, Bell added.
Tony Stephens, partner at Business Health, previously highlighted the direct correlation between high quality reviews and happier clients.
“What clients continually tell us in the feedback is that they want their lives reviewed, not just their investments,” he explained.
“Sometimes the review can get a bum rap because it can be very compliance-heavy, and it’s seen as something you have to do. You need to find a balance between the client experience and the compliance because it is probably the single most important thing you can do over the lifetime of the client to retain them in your client base.”
AUTHOR
Jasmine Siljic
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This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping up the number of clients an adviser services and not replacing advisers. In my book to expect a happy client with whom you are constantly in contact and also look after 200 clients is an impossible task, yet this appears to be the new norm from what I can ascertain. Greed has a major part in this as far as I am concerned.