Dos and don’ts of client communication

But you must first recognize that effective communication is a two-way street. It is necessary that you “pay close attention to what your clients are saying; listen carefully; and more important, keep an open mind,” advises Prem Malik, chartered accountant and financial advisor with Queensbury Securities Inc. in Toronto.

“It works both ways,” says Nadine De Palma, financial advisor with Edward Jones in Toronto. By listening to your clients, you will get a better understanding of their personal situations; put yourself in a position to ask the right questions and assess their expectations, she suggests.

Here are some “Dos” and “Don’ts” of client communication:

Show respect
Make clients feel secure and comfortable by offering support and appreciation. “Treating them with respect will build trust,” says Holjevac. Adds De Palma: “give them your undivided attention.” Demonstrate that you understand their circumstances.

Be clear and straightforward
Tell them what they should expect from you and make sure they understand your process. “Be upfront to avoid surprises,” advises Holjevac. It might be better if “you underpromise and overdeliver,” she suggests. It is important to avoid conflicting objectives: what you want to achieve vs what your clients want. Holjevac notes that you should not try to fit “the flavour of the week” into your clients’ personal situation. It will not necessarily work and “might not be what they want,” adds De Palma.

Do not send mixed messages
Clients often ask questions that you cannot answer with certainty. If you can’t, let them know, without creating uncertainty or raising doubts. For instance, De Palma says a client may ask: “What returns can I expect?” In such case, you should say that “you cannot predict the markets” and consequently “can’t provide a direct answer,” she says. Then, you should explain the process you use to generate the best possible returns, bearing in mind the client’s objectives and past returns.

Do not make mental leaps and assumptions
Typically, while clients are describing a familiar situation you may be inclined to “tune out” and construct a solution in your head even before they would have finished describing their objectives. Be careful “not to make assumptions,” advises Malik. Plus, “do not make generalizations,” adds Holjevac, as individual needs tend to vary even though circumstances may appear similar.

Confirm understanding
When providing advice, be sure to get clients acknowledgement that they understand what you have discussed. “Very often, most people do not understand the things we take for granted as common knowledge,” cautions Holjevac. For instance, clients’ interpretation of the purpose of certain investments and what the “investments actually deliver can be quite different,” she says. It’s worth noting that “people sometimes do not want to admit that they don’t understand,” she adds.

IE