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You’ve heard it many times from successful financial advisors – consistent communication with clients is an essential ingredient to long-term success. However, according to a 2014 study by the FPA Research and Practice Institute™, many advisors aren’t taking the right steps when it comes to effectively getting their message out.
Many financial professionals know they should be communicating on a regular basis. But time gets in the way or a blank computer screen and a lack of creativity may become big roadblocks.
Before you begin to craft a newsletter or reach out to clients, consider the smart ways below that offer actionable ideas and reasons why consistent communication is vital to your business success.
1. Visibility quickly comes to mind.
Do you want your clients wondering why they never hear from you? Whether by email or a hard copy (or both), you can consistently stay in front of clients with valued-added material. Some clients will occasionally engage and create a meaningful dialogue based on the content you provide, while others have a handy contact point simply going to their inbox. Either way, you are just a mouse-click away.
2. Set yourself apart.
Clients really do appreciate that you are keeping them informed, but many financial advisors fail to fully leverage this vital form of communications. By regularly sending communiqués, you send the message that you are the subject matter expert/a trusted resource, and it enhances your brand.
Your newsletters become another tool to demonstrate your expertise to clients. Plus, you might be surprised that clients will forward your information to family and friends, creating a pool of potential prospects.
3. Write conversationally.
You aren’t writing an academic paper to leaders in your industry! Prospects reach out to you because they don’t understand the financial maze in front of them. But you do! Communicate in terms they will grasp. Draw verbal pictures, use illustrations, and employ simple analogies.
I saw a study several years ago that consumers have a better understanding of what their auto mechanic just told them than the information that comes from their financial advisor. Put another way, stay away from jargon! If you feel you must use jargon, then take the time to explain the terms in language they will grasp. Those one or two extra sentences will pay dividends.
4. What message do you want to reach clients with?
You are blessed with an enormous body of knowledge and experience – share it! Did you recently attend a conference highlighting important trends that directly affect clients? Could you discuss market trends that clients should be aware of, or ones that are simply noise? What about a recent client event?
5. Personalize it.
Your clients want to know something about you, and more than just the fact that you’re a smart man or woman. Before writing about how the knowledge you absorbed from that industry conference will benefit them, you may want to briefly share a story about how much and why you enjoyed your travels.
6. Go one step further.
As a corollary to the step above, feel free to share pictures of your company picnic or annual holiday party. It humanizes you and makes you more relatable.
7. Dealing with emotions.
No matter how we communicate the value of the long-term plan, market volatility will inevitably arise. Even if most of your clients won’t contact you, they are probably stewing over what is happening to their investments.
Reach out before they do. Let them know you are engaged and closely monitoring the situation. But before launching into the hard facts, empathize and let them know you are available to address any of their concerns. Listen closely.
After touching on the market-based themes, remind them that their financial plan incorporates the occasional traffic jam, and detours are rarely fruitful.
By communicating on a regular basis with your clients, you help cement your position as the trusted advisor. It adds to your credibility during a market crisis, which in hindsight, is usually just another bump in the road on the way to the client’s financial goals.