Understand what your client wants
Financial planners must regularly assess client expectations or risk losing them, a South Australian planner has warned.
Proper Financial Advice principal Brian Lucas said unless advisers asked their clients what they expected from the advice being given, the relationship will flounder.
“Ask the client what they expect from the planner,” he told the AFA Conference in Melbourne.
“Do they want to be contacted once or twice a year?
“It is about knowing what their expectations are, rather than just asking factual questions at the first meeting.”
Lucas said most clients are fearful of making the wrong decisions, but what they are scared of most is being lonely in old age.
“So the adviser’s questions need to be related to lifestyle changes such as moving home or are they scared of retirement?” he said.
“Many people are scared about the loss of routine when they stop working.”
By winning the confidence of the client on lifestyle decisions, they will see the planner as a centre of influence.
“So talk to clients about selecting a nursing home or a funeral director,” he said.
“Talk to them about what happens when they stop working and the lack of social contact that can happen.”
Lucas said if the adviser doesn’t bring up these subjects, they are missing part of the relationship with the client.
“It is also creating a point of difference for your practice and as a result more clients will want that adviser,” he said.
It is also about being seen to give extra service, so his practice gives vouchers for attendance at events or to restaurants.
“This extra service will remind them of the adviser and it will bring in a lot of referrals,” he said.
“It is also part of the after-sales service and contacting the clients to reinforce that they have made the right decision on a particular piece of advice.”
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