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If you’ve been in this business for any amount of time, you’re probably building a nest of “inactive” or “dormant” clients. These clients were once actively engaged with your advice but have since drifted away for various reasons, including changes in life circumstances, a lack of consistent communication, or a bad experience. Whatever the reason, it may be time to “fish or cut bait” to either reengage with them or move on completely.
Keeping inactive clients on the books who have no intention of doing business with you is nothing more than a distraction or a false sense of security. They need to be let go. On the other hand, there may be some golden opportunities lying in wait, but they’re not likely to come to you. Either way, you need to take the initiative and find out.
Reconnecting with dormant clients can be challenging. When reaching out after a period of inactivity, you may face some resistance. Some clients may be hesitant to reengage, perhaps harboring concerns or dissatisfaction. For any chance of rekindling trust and the relationship, it’s vital to understand how to manage these reactions and rebuild the foundation for long-term engagement.
Understanding client resistance: Why dormant clients push back
When clients have been inactive for an extended period, their resistance to reconnecting often stems from various factors, such as:
#1. Dissatisfaction with past experiences
Clients who felt underserved or whose expectations were not met previously may associate their inactivity with disappointment. Their hesitation can signal unresolved issues, whether perceived neglect, missed opportunities, or unmet goals.
#2. Erosion of trust
Trust is fundamental in a financial advisory relationship, and prolonged silence or limited interaction can weaken that trust. Your clients may question whether you genuinely prioritize their interests or if the lack of communication might suggest a lack of commitment.
#3. Feelings of neglect
Dormant clients may feel forgotten, particularly if they haven’t been contacted in a long time. This sense of neglect can translate into a lack of motivation to reengage, as they may assume you don’t value their business.
Changed financial goals or situations
During long periods of inactivity, your clients’ financial situations and goals may have shifted. They might resist reconnecting because they are unsure whether you can still provide relevant guidance or adapt to their current needs.
Recognizing the root causes of resistance is crucial to effectively managing your clients’ concerns. To rebuild the relationship, you must approach these conversations with empathy and understanding.
Strategies for handling initial reactions and resistance in dormant clients
When reconnecting with dormant clients, taking a thoughtful approach to address resistance is essential. Here are some strategies to navigate initial reactions and re-establish rapport:
#1. Acknowledge the past
Before diving into business, openly acknowledge the period of inactivity. Your clients will appreciate your honesty in addressing the lack of communication and potential dissatisfaction. A simple, transparent statement like, “I realize it’s been some time since we’ve last spoken, and I want to make sure I address any concerns you may have,” can set the tone for a productive conversation.
#2. Show empathy
Empathy is crucial when dealing with resistant clients. Take the time to listen to their concerns without being defensive. Understanding their perspective allows you to respond with tailored solutions rather than excuses. For example, if they felt neglected, acknowledge that and discuss how you’ve enhanced your communication practices to prevent such gaps moving forward.
#3. Offer value
Dormant clients need a reason to reengage. Present valuable insights or updates that are relevant to their current financial situation. Whether it’s market trends, new investment opportunities, or strategies to align with their changed goals, offering value from the outset demonstrates that you are invested in their success. Use phrases like, “Given the recent changes in the market, I believe there are some new strategies that could benefit your portfolio.”
Building trust for long-term engagement
Once you’ve addressed the initial resistance and reopened a dialogue, you should focus on rebuilding trust and fostering long-term engagement. Here’s how to keep the relationship strong moving forward:
#1. Regular check-ins
Proactive communication is critical to preventing clients from becoming dormant again. Establish a structured follow-up plan with regular touchpoints. Frequent communication will ensure clients feel involved and valued, whether through monthly email updates or quarterly reviews. Use automated systems to schedule reminders for these check-ins but personalize each interaction to avoid appearing robotic.
#2. Personalize your service
Tailoring your services to the individual client is a powerful way to show your commitment. Understand their unique financial goals, risk tolerance, and life changes. By delivering customized advice and solutions, you demonstrate that their needs are a priority, reinforcing the value of the relationship.
#3. Offer continuous value
Providing relevant financial insights, market updates, and educational resources will keep clients engaged. Stay informed about current economic trends and share information that can help clients make informed decisions. For example, send newsletters featuring timely market analysis or host webinars exploring new investment strategies.
#4. Create engagement opportunities
Invite clients to participate in exclusive events or discussions. Whether it’s a webinar on tax-saving strategies or a networking event with other clients, providing opportunities for involvement fosters a sense of community.
Bottom Line
Every reconnect is an opportunity to enhance relationships, provide value, and demonstrate a renewed commitment to your clients’ financial well-being. By approaching these challenges thoughtfully, you can turn resistance into a chance for growth and deeper client loyalty.
Related: Reviving Dormant Clients: Tips for Rebuilding Connections