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Playing for Keeps—Retaining Clients in Any Market Back to Articles of Interest Author: Nicole Lamoureux We've all heard about the opportunity the market downturn has afforded advisors who are seeking to acquire new clients. Yet the flight en masse of disgruntled clients searching for a new advisor to help them get back on their financial feet hasn't really materialized for many advisors.There are a number of reasons for this, but the most likely culprit is fear. Even if clients are disappointed with their current advisor, the market upheaval they've experienced has them willing to put up with the devil they know until things calm down. Just like you would advise clients against exiting the market during a downturn, clients are resisting the urge to bail on their current advisors—they want to sell on a high, so to speak. FOCUS YOUR EFFORTS ON "SURE THING" This is not to say that you can't acquire clients in this market, but it does make the case for focusing on something you have more control over: your existing clients. Indeed, a good portion of your time and marketing budget should be spent on client retention. After all, aren't other advisors aiming to do exactly what you're doing and capture a share of your client base? Consider also that:
Put simply, happy, existing clients are a "sure thing," and they are typically the most receptive audience for cross-selling opportunities. For example, if you are considering expanding your services to include insurance, sub-advised plans, financial plans, or estate plan coordination, you may be better served by tapping additional wallet share from existing clients than by seeking out new clients for this business. Remember, though, that marketing cannot improve service quality and satisfaction. If your service level is not up to par, improve that first before thinking about marketing. If you're not already exceeding your clients' expectations, you run the risk of losing them. EVERYTHING SPEAKS, SO SPEAK UP! If you are doing everything you can and should for your clients, are they automatically satisfied? Maybe. But there is one way to ensure that they know exactly what you do for them: Tell them. Client reviews. In addition to discussing your clients' progress toward their goals, any changes they've experienced, and steps for moving forward, consider talking specifically about actions you've taken since you last met. Some of the things advisors tell us they do, but don't communicate, are:
You may also want to include a client satisfaction question in your review or even conduct a satisfaction survey. The results can help you improve your brand and your clients' perception of it as you incorporate their feedback. Commonwealth offers a client review template and client-facing review worksheets to help you get started. Detailed service menu. Don't just simply list services like investment management on your menu, but consider all of the legwork that goes into that activity. Similarly, if risk management is on your menu, you may want to spell out what that entails:
With that said, you need to ensure that your communications are high quality and relevant—and not just for communication's sake. Consider some or all of the following resources available through COMMunity Link:
SATISFIED CLIENTS HELP YOU ACQUIRE NEW CLIENTS Although the need to retain clients has come up more now that the markets have doled out some mayhem, turbulence is not the only reason to focus your attention on keeping clients satisfied. Some of the best marketing you can receive is a positive word from a current client—it can certainly help influence the decision of a prospective client. Of course, there's no magic formula for making your clients stay put, but consistently dazzling them with your service—and their perception of your service through your marketing efforts—are winning strategies in any market. Nicole Lamoureux is the manager of marketing communications in Corporate Marketing. She is available at x9153 or at nlamoureux@commonwealth.com. |
 
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