Just like every client wants personalized financial recommendations, clients also want personalized communication — how they’re communicated with, how often and the content of the communication.
Not every advisor personalizes a communications plan for each client, but it can lead to stronger relationships and better loyalty. Nearly 90% of clients consider their advisor’s communication style and frequency when deciding whether to continue using their services. Communicating with every client in the same way or ignoring a client’s communications preferences can cause an advisor to feel less genuine and weaken the relationship.
Here are three ways to know your client’s communication preferences:
Listen to Clients
The most obvious first step is to get to know your clients. Talk to them, learn about their lives and values and ask about how they like to be communicated with. Building a relationship involves learning about their lifestyle and what matters to them. Use that information to select the most suitable channel for communication.
Some clients want to be involved in every step of their financial journey and prefer regular text message updates. Others would rather have a more hands-off approach and only want quarterly email updates and an annual in-person meeting. Those clients wouldn’t respond well to regular text messages, just like a client who wants to be involved would likely feel alienated by emails every few months. But an advisor can’t know that if they don’t know their clients.
There’s no one right or wrong way to communicate with clients. The best channel depends on the message and how your clients prefer to communicate. Here are four channel options advisors frequently use to connect with clients.
1. Phone
Phone calls are a traditional method that still resonates with clients. One survey found that 45% of clients prefer phone calls over other communication channels. Phone calls enable real-time conversations without the need for face-to-face interaction or video conferencing. This channel is ideal for quick check-ins, especially around major life events or follow-ups after meetings.
2. In-Person or Virtual Meetings
In-person meetings were once the standard for financial advisors, but the convenience of virtual meetings has gained popularity in recent years. More than half of clients meet with their advisors in person and virtually. In-person meetings are especially useful for initial meetings to build relationships. In-person or virtual meetings can also be a strong choice when discussing sensitive or complex topics.
3. Email
Nearly three-quarters of clients say email is their preferred channel for communication. While email doesn’t allow for real-time back-and-forth like other channels, it offers convenience. Advisors can easily share documents and links to financial dashboards or recommended products and share their reasoning and updates with clients.
4. Text
Texting may seem casual for a financial advisor, but it can be an effective way to communicate quick updates or point clients to review a dashboard update or new report in more detail. All communication must comply with SEC and FINRA regulations, particularly when using texts to share information. That means advisors must use compliant platforms and archive their messages.
Follow Past Examples
Many clients, especially those who have never had an advisor or are entering a new life stage, are unsure of what they want in terms of communication. It’s a “you don’t know what you don’t know” situation. This is an ideal time for advisors to leverage their experience working with other clients to develop strategies they know will be effective.
If you’ve learned that the best way to share new forms with clients is through email, recommend that channel to new clients. Similarly, if an advisor knows virtual meetings allow them to connect with clients around the world, they can recommend that channel to offer clients convenience.
Advisors can use records of communication with previous clients to determine the ideal frequency and identify the best times of day and days of the week for communication. Firms likely have numerous communication records, so use them to your advantage to recommend a communication strategy that is proven to be effective and also meets a client’s needs.
Adjust and Adapt
Setting communication preferences isn’t a one-time event. As clients’ lives change, their communication preferences will likely change as well. A client may have started with an advisor not wanting to get updates very often. However, as they approach retirement, they may prefer to receive more frequent communication. Similarly, a client may want updates via email but may switch to in-person meetings if they get overwhelmed by their inbox.
Staying agile and adjusting to clients’ changing communication needs strengthens the relationship and demonstrates that advisors are attentive to their clients’ needs.
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