Many advisors focus on things they can do to attract new clients, such as creating effective marketing campaigns or establishing a referral program. But what about the things you’re doing that could unknowingly be driving clients away?
If you’re using the same strategies and practices you’ve used for years (or following the example of other advisors), there’s a chance you’ve unwittingly fallen into these bad habits that can cause clients to look for a new advisor. The good news? Once you identify what’s getting in the way of attracting and retaining clients, you can adjust and improve your outreach and habits.
Here are six things you might be doing that can get in the way of attracting new clients and growing your firm:
1. Not Listening to Clients
Trustworthiness and good listening skills are among the top skills clients look for in an advisor. Clients are more likely to trust their advisors when they feel valued and listened to. They know their advisor understands their unique needs and will act in their best interest. A client can perceive that someone isn’t listening to them if they don’t answer their questions, make them feel uncomfortable, or rush potential clients through the investment process. Listening starts with the first interaction with a potential client and continues with every touchpoint.
2. Offering One-Size-Fits-All Recommendations
Listening to clients is crucial, but advisors need to take the information they gather and use it to build a custom financial plan. Clients want advisors to understand their needs and offer personalized recommendations to help them reach their financial goals, rather than the same formula they recommend to every other client.
Personalization matters: 70% of clients say they consider highly personalized service a key when choosing an advisor. Advisors who create plans and recommendations without considering the unique needs, goals, lifestyle, and financial status of each client will quickly be passed over.
3. Not Establishing Your Niche
The old saying: “Jack of all trades, master of none,” can apply to financial advisors. While there’s something to be said for advisors who offer a wide variety of services, clients also want to find an advisor who is experienced in their situation. In many cases, potential clients will look for someone with an established niche (everything from advising young entrepreneurs to recommending global investments or supporting empty nesters) instead of a do-it-all professional.
4. Communicating Infrequently
Communication is key to building a strong client relationship. But advisors who communicate infrequently with their clients (once per year for instance) may miss out on those relationships. Communicating frequently and checking in with clients (such as with a phone call around a major life event, an email to explain a new market trend, or a meeting to review their portfolio) shows clients that their advisor cares about them and is connected to their current financial state.
5. Not Showcasing Expertise
Aside from trust and communication, the main thing potential clients look for in an advisor is expertise. One survey found that the top reason clients keep their financial advisor is that they are uncomfortable handling financial issues on their own. Advisors have a huge opportunity to provide value to clients by showcasing their expertise and teaching clients about complex financial topics in ways they can understand. Clients who understand the reasoning behind their advisors’ recommendations are empowered to manage their finances. Don’t miss out on the chance to educate clients through one-on-one conversations, blog and video content, classes and workshops, and more.
6. Not Embracing Technology
Today’s clients are accustomed to handling everything from their groceries to travel reservations digitally, and they expect the same convenience from financial advisors. Clients want more digital access to their accounts and seamless integration into their everyday lives. When advisors leverage digital tools, clients can better understand their finances and how their accounts are progressing toward their financial goals. On the other hand, when financial professionals fail to update their systems and processes, relying on paper forms and slow workflows, clients can easily become frustrated and seek out another firm that offers quick, convenient digital services.
Leave paperwork behind. Docupace replaces manual processes with digital workflows built for wealth management. With pre-filled forms, real-time data sync, compliance checks and deep integrations, firms can move faster, reduce errors and stay focused on clients, not admin. Click here to schedule a discovery session.
