In the strictest sense of the term, the advisor/client relationship is a business relationship, but smart advisors and satisfied clients know that there are elements of personal interaction in the equation.
Whether it’s checking up on a recently widowed spouse or parents that just welcomed a new child into the world or many more related items, the personal touch is usually appreciated by clients. Not surprisingly, communication is integral in establishing that personal touch and thus enhancing client satisfaction. After all, a significant part of client acquisition and retention is effective communication. Remember, a spate of recent surveys confirm that clients want a human touch.
However, given their analytical natures, some advisors believe their communication skills are lacking. Others intimidated by the word. Chances are many advisors have better communication skills than they give themselves credit for and that’s a good thing because that proficiency is essential with today’s ever-demanding, increasingly significant client base.
The good news is that advisors don’t have to stretch to up their communication games and if that goal can’t be accomplished in house, it can be realized by outsourcing related tasks to cost-effective professionals. Point is communication is a vital task and needs to be mastered.
Why Communication Matters
Communication, whether in-person or via marketing avenues, is how advisors make impressions on prospects. In other words, it’s of the utmost importance to a practice’s long-term success.
“The importance of client communication cannot be overstated—it’s the lifeline that connects you to your clients and the basis of your interactions,” according to Nationwide. “Through effective communication, you can gain a deep understanding of your clients’ needs, concerns, and goals, and more effectively advise them through financial planning. Moreover, communication fosters trust. In an industry where trust is paramount, financial professionals need to maintain open lines of communication.”
Not surprisingly, technology is crucial in the advisor/client equation. After all, advisors might only see some clients a couple of times a year and there’s also a chance in-person meetings might never happen, placing some burden on leveraging tech for effective communication.
“Digital tools, when used correctly, can significantly enhance the quality of communication and help streamline processes in your practice. Additionally, utilizing financial planning software and tools can be essential for staying competitive and delivering the highest level of service,” adds Nationwide.
Tips for Communication Success
In terms of shoring up client communication, there are some words to live by. Those include active, clarity, consistency and simplicity. Active as in be in active listener. Consistency and simplicity are self-explanatory and clarity lends itself to both. Point is, plenty of financial topics are complex. That’s why clients have advisors. It’s the advisor’s job to demystify seemingly unapproachable subject matter and jargon.
Consistency also implies regular updates, which are easily achieved via technology. Quarterly newsletters and updates when markets swing dramatically in either direction are action items that can check the consistency box. Advisors should also embrace bespoke, empathy and respect as foundations of effective client communication.
“It seems like a no-brainer, but it’s important to approach each client with empathy and respect, acknowledging their individual needs and aspirations even when they don’t align with your own,” concludes Nationwide. “Tailoring your communication approach to your clients based on their likes and preferences can go a long way. Rather than sending out generalized communication, personal notes or marketing based on their interests or financial situation can help them feel heard.”
Related: How Lincoln Financial Group Annuities Can Help With the Cash Conundrum