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Are you in touch with your clients on a regular basis? Your answer might be yes. Your answer might be wrong. You might be in touch with your best clients on a regular basis. You might be in frequent contact with your clients who say “yes.” You might be in touch with the clients who you like. Considering your client base as a whole, you are probably not in touch with everyone on a regular basis. Does it matter?
Let us consider the silent segment of your book of clients. “They don’t bother you and you don’t bother them.” It is easy to rationalize “They will call if they need me.” There might be clients who tell you that specifically: “You don’t need to call me. If I need you, I will call.” As an FYI, my first manager explained “If you have a good relationship with your client and you have something relevant to tell them, no one does not want to be called.”
It is important to bear in mind research has shown “lack of communication” is a major reason clients leave a financial advisor. Competitors know this: Asking “When was the last time you heard from your advisor” is a common way they can open the conversation with your clients.
I started in the business when the role of a financial advisor was transactional. It was common to have hundreds and hundreds of clients. At that time I figured out there were approximately 250 production days in a year. If I had 250 client relationships (households) I could cumulatively spend a day a year on each relationship. This was theoretical because an advisor has plenty of other activities demanding attention during an average day. But, if you considered an eight hour day, that added up to a lot of phone calls, lunches and face to face review meetings. Today, the average number of clients a financial advisor in a branch office has is likely far lower.
Years ago I came across a statistic that is likely still valid today. A client feels they are getting good service if they receive 6+ touches per year. Because of the volume of e-mails and texts we receive, touches would be more personal. Examples are phone calls, video calls, in person meetings and meals together.
What are the reasons a financial advisor would get in touch with a client?
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Annual review. Everyone should get one, ideally in the first quarter of the year.
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Periodic reviews. These might be quarterly, not necessarily as in depth as the annual review. These might be progress vs. goals or another type of performance review.
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Specialized reviews. These might be a subset of the annual review, but they could be a standalone review. Examples are retirement planning reviews or wealth reviews. (How much am I worth if everything is brought together in one report?)
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Financial planning discussions. As their advisor, you want to know if there have been any significant changes in their life. This might include deciding to retire early, start a business, the addition of a new child to the family, getting a new job, getting laid off or an impending change in their marital status. The advisor is often the last to know.
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Passing along relevant news. They own a certain stock. It made the front page today. They likely know, but you should get in touch and tell them. Now they know you are paying attention.
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Inviting them to an event. Your firm might be sponsoring a museum opening. You might be hosting a client event featuring a stock market strategist or a famous author. It might be a client recognition event. You have an opportunity to socialize with your client.
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Buy them lunch. This might tie into one of those reviews. It is not something you do for every review, but once in awhile it’s a treat for your client. They will likely tell their friends “My advisor bought me lunch today.”
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The client/prospect dinner. This is a cultivation strategy. You invite a couple of clients to dinner at a nice restaurant. You ask them each to bring “Someone you think I should meet.” Everyone has a good time. You gain a new prospect.
There are plenty of reasons to reach out to clients. It would be very difficult for a client to find any of these intrusive. You are strengthening the relationship. You are delivering a level of service they will likely tell their friends about in detail. They might even sound like they are bragging.
Related: What Characteristics Do Prospects Seek in a Financial Professional?