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Written by: Stephen Beach
As a financial advisor, one of your primary professional goals is to guide clients toward their financial objectives. To achieve this, maintaining regular contact is crucial. But what is the optimal cadence and channel(s) for these interactions? Is there a “golden rule” hidden in the forest of marketing and communication tips?
The Vital Role of Client Communication
Effective communication forms the bedrock of any successful financial advisor-client partnership. Regular, open dialogue helps establish trust, reinforces the advisor-client bond, and ensures both parties are aligned. It also enables advisors to gain a deeper understanding of their clients’ financial situations, aspirations, and risk tolerance – all essential elements for crafting a comprehensive financial strategy.
Fostering Trust and Connection
Consistent client communication is key to building trust and rapport. When clients feel their advisor is genuinely invested in their financial well-being, they’re more likely to remain committed to the relationship. By maintaining regular contact, advisors can add a personal touch to their services, which is particularly valuable in the emotionally charged world of financial services.
Addressing Client Inquiries and Concerns
Another crucial aspect of regular communication is the ability to address client concerns and questions promptly. By staying in touch, advisors can ensure they’re always available to offer guidance, answer queries, or tackle any issues that may arise. This can be instrumental in helping clients maintain calm and confidence, especially during periods of market volatility or economic uncertainty.
Keeping Clients Informed on Market Dynamics
Astute financial advisors recognize the importance of keeping their clients up to date on market shifts and economic developments. By sharing the latest news and insights via a video and/or a newsletter, advisors can help clients make informed decisions about their investments, retirement planning, and other financial objectives.
Factors Influencing Communication Frequency
While the importance of regular client communication is clear, there’s no one-size-fits-all approach to how often it should occur. Several factors can influence the optimal frequency for communication:
- Client Preferences and Expectations
- Complexity of the Client’s Financial Situation
- Regulatory Requirements and Industry Standards
- Advisor’s Communication Style and Business Model
Diverse Communication Methods
Effective communication can take many forms. Here are some popular methods:
In-Person Meetings
Face-to-face meetings provide an opportunity to build personal relationships, review portfolios in detail, and discuss complex financial topics.
Phone Calls and Video Conferences
These methods are ideal for quick updates or addressing specific concerns, especially for clients who can’t attend in-person meetings.
Email Updates and Newsletters
Digital communication is perfect for routine updates, sharing news articles, or promoting relevant financial resources.
Social Media and Online Platforms
Channels like Facebook can be used to share financial news, engage with clients, and promote resources.
Video Content
Creating personalized video content can add an extra layer of engagement and personal touch to your communication strategy. Videos allow you to explain complex financial concepts visually, provide market updates, or share personal insights in a more engaging format.
Think about how you want to incorporate your video content into an overall strategy that resonates with clients. For example, you can pick and choose information from your video content to use for hosting a webinar and then we can repurpose clips from your webinar and original videos across your website, email newsletter, and social media pages for effective marketing reach.
CRM for Financial Advisors: Establishing Communication
Once you’ve determined the right communication frequency and method for each client, it’s crucial to establish a consistent schedule. If you use customer relationship management (CRM) software, you can organize and schedule your communications – or have an agency do it for you.
Common approaches to the timing of communications include:
- Annual or Semi-Annual Reviews
- Quarterly Check-Ins
- Monthly Updates and Market Commentary
- Ad Hoc Communications for Time-Sensitive Matters
Stay Connected With Your Clients
Consistent and effective communication is vital for cultivating strong financial advisor-client relationships. When deciding on the frequency and type of client communication, various factors must be considered, including client preferences, the complexity of their financial situation, regulatory requirements, and communication methods.
Advisors should establish a communication schedule that aligns with their clients’ needs and their own business model, remaining consistent in their approach to ensure clients stay informed and confident throughout their financial journey.
Related: How Video Marketing Helps Advisors Build a High-Value, Low-Volume Client Base