According to ThinkAdvisor, strong communication drives long term client relationships in the advisory business. Many industry professionals recognize that at least six meaningful contacts each year help clients feel properly served. Meaningful interaction requires more than routine updates. Advisors must build a personal connection and avoid acting as only a service provider.
Below are ten core communication practices that support effective client relationships, prepared by ThinkAdvisor.
Identify the Client's Preferred Communication Channel
Clients differ in age, habits, and responsiveness. Some prefer text messages, others respond to phone calls or email. Advisors should learn each client's preferred method and use it consistently when appropriate.
Exercise Caution With Written Communications
Written communications can appear in court and arbitration cases years later. Advisors must assume every message may become evidence. They should review content carefully before sending any written communication.
Maintain Detailed Records
Advisors should document calls, messages, and attempted contact. Even a client's failure to respond matters. A clear timeline helps address disputes and demonstrates diligence.
Conduct Regular Reviews
Advisors should hold at least one annual review, preferably in person. Video meetings suffice when distance prevents travel. Advisors should not assume clients understand market performance. If a client declines or cancels a meeting, the advisor should document it in the CRM system.
Communicate a Forward Looking Plan
ThinkAdvisor suggests that advisors ensure that their clients understand why they own particular investments. Advisors should explain economic expectations and connect recommendations to firm research and long term themes.
Do Not Assume Silence Means Satisfaction
A change in communication patterns can signal concern or confusion. Advisors should initiate contact rather than wait for the client to reach out.
Anticipate Financial Planning Needs
Advisors should identify upcoming events such as required minimum distributions or college tuition obligations. Proactive communication strengthens trust and preparedness.
Provide Support to Nervous Clients
Market declines can cause anxiety. Advisors who expect a negative monthly statement should contact sensitive clients before statements arrive.
Expand the Relationship Thoughtfully
ThinkAdvisor suggests that advisors should introduce relevant opportunities, invite clients to events, and discuss additional planning needs. Engagement helps clients feel valued rather than maintained.
Watch for Life Changes
Health issues, layoffs, or family developments affect finances. Advisors should approach these topics carefully and show genuine concern while gathering necessary information.
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