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If you’ve been in this business for any length of time, you know the cost, in terms of time, effort, and money, of bringing in a new client. You should also know that replacing a client who leaves with a new client costs five to 25 times more than retaining an existing one. Client retention is crucial to building a sustainable and profitable business.
How about when clients go dormant? They’re still on the books as clients but less engaged for one reason or another. They may still take your calls, but not necessarily your advice. If you track such things, you may find they no longer visit your website or respond to your social media outreach. They may have even pulled some business from you, leaving some to keep the relationship alive.
From a business standpoint, they may as well be a “lost” client. You either have to replace that lost business or find a way to reconnect and rejuvenate the relationship. The good news is these clients already know and trust you, so it should take less effort than starting from scratch with a new client. Additionally, proactively reaching out to inactive clients can uncover fresh opportunities and refortify the foundation of your relationship.
Why clients go dormant
Before reaching out to inactive clients, it’s essential to understand why they drifted away in the first place. Here are some common reasons:
Life change: It’s not unusual for clients to experience significant life events such as marriage, divorce, losing a loved one, or career changes that can shift their priorities away from their advisory relationship.
Dissatisfaction: They could have felt their expectations weren’t met, whether due to investment performance, communication lapses, or a perceived lack of personalized service.
Lack of engagement: Sometimes, clients become less involved because their advisory relationship increasingly consists of routine maintenance, feeling like they no longer need active financial management.
Whatever the reason, it’s crucial to approach the client with empathy, understanding that their inactivity may have been driven by personal circumstances, dissatisfaction, or simply the passage of time. Your objective is to rebuild the trust and connection you once had and demonstrate value in addressing their current and future needs.
Preparing to reach out: A strategic approach
Before attempting to reconnect with inactive clients, it’s essential to prepare thoroughly. Going into the conversation blindly can come across as disingenuous, so taking time to understand where the client left off with you is crucial.
Review client data: Look through past interactions, account history, and financial plans. Are there any significant changes in their personal or financial situation that you should be aware of? Checking whether they’ve hit key life milestones like retirement, paying off a mortgage, or having children can help you tailor your outreach.
Identify areas for re-engagement: Highlight specific opportunities that may interest them now, based on the current market, economic environment, or their personal situation. Perhaps a new financial product or service wasn’t available when they were active clients, or market conditions have changed, prompting a need to reevaluate their portfolio.
Personalize your outreach: For the best chance of success, it’s critical to personalize your outreach. Avoid generic messaging—make it clear that you’ve kept them in mind and are reaching out with their specific situation in mind. By demonstrating that you understand their unique needs and goals, you create a compelling reason for them to re-engage with you.
Best ways to reconnect with dormant clients
Once you’ve gathered all the necessary information, it’s time to make contact. Here are some of the best strategies for reconnecting with dormant clients:
Email outreach
A personalized email can be an excellent way to re-initiate contact, especially if your client has been inactive for a long time. In your email, acknowledge the gap in communication and focus on delivering value-driven information. This could be anything from a relevant market update to a new financial strategy that could benefit them. Your tone should be warm, and the message should make it clear that you’re reaching out because you believe there’s something of benefit for them, not because you’re just trying to reactivate an account.
Example: “Hi [Client Name], I’ve been reviewing your portfolio and noticed a few opportunities given the recent market shifts. I’d love to catch up and see how your financial goals may have evolved over the past few years.”
Phone calls
A personal phone call can add the human touch that emails can’t match. During the call, highlight a recent market trend or event that may interest the client. Listen carefully to their needs, concerns, or reasons for their inactivity. This is the best approach for clients with whom you had a closer relationship or who were more actively engaged before becoming dormant.
Special invitations
Another low-pressure way to reconnect is to invite them to a webinar, seminar, or exclusive event. These events offer value while giving clients a reason to re-engage without making them feel targeted. Whether it’s an educational session on market trends, tax-saving strategies, or retirement planning, this approach positions you as a thought leader and resource, encouraging clients to re-establish the relationship.
Value updates
Provide dormant clients with tailored updates on their portfolios or financial strategies. Showing that you’ve been monitoring their progress—even if they haven’t been actively engaged—can demonstrate your commitment to their long-term success. This could also be an excellent opportunity to introduce new tools, resources, or financial products that align with their updated goals.
Bottom Line
Dormant clients do not have to be a lost opportunity—they simply need the right approach to re-engage. Reconnecting with them can breathe new life into your practice, offering a cost-effective way to grow your business while nurturing relationships. By approaching clients with empathy, careful preparation, and personalized outreach, you can re-establish trust and show renewed value in addressing your clients’ evolving financial needs.
Now is the time to take action—don’t let dormant clients remain on the sidelines.
Related: What Makes an Advisor Successful?