We all know communication is key to building a successful and solid client and advisor relationship. On Wall Street shared a recent study of millionaire clients by a consulting firm, Spectrem Group, lists the top five reasons why clients change advisors. It is not much of a surprise that an advisor’s failure to communicate makes the list, but it might be a surprise that issues relating to communication tops the list. In fact, three out of the top five reasons to change advisors relates to communication.
Client Hang Ups: Top Five Reasons Clients Dump An Advisor
On Wall Street – Practice Management
October 18, 2012
Top 5 Reasons Clients Switch Advisors
1) Not Returning Phone Calls in a Timely Manner
2) Not Providing Good Ideas and Advice
3) Not Being Proactive in Contacting the Client
4) Not Returning Emails
5) Long-term (Over One-Year) Losses for the Portfolio
Two of the top five reasons change advisors were not related to communication. Given advisors hold themselves as being in the business of providing advice and managing portfolios, it is understandable that bad advice and/or poor performance would be fundamental cause for a client to leave. An advisors ability to communicate quickly and effectively with their client, whether by phone or email, proves to be vital to help keep your clients from switching advisors.
So how can you ensure your client doesn’t start looking for a new advisor? Keep doing what you do best. Give great advice and make sound investments for your clients. Do everything you can to not miss a client’s call and email, but if you do, make a point to get back to the client as soon as possible! Try not to push a return phone call or email until tomorrow. Don’t rely on your client reaching out to you, take the initiative to contact your clients to keep them informed to build your relationship.
