Retaining your existing clients should be part of your core strategy for building your business. Your clients not only make a valuable contribution to your bottom line, but also can help to enhance your reputation through recommendations and referrals.
“Financial advisors need to retain as many clients as possible,” says George Hartman, managing partner with Elite Advisors Canada in Toronto, “because over time you will lose clients for a variety of reasons.”
Adds Raymond Yates, senior partner with Save Right Financial Inc. in Mississauga, Ont.: “You need to keep your clients happy by deepening your relationships with them.”
Here are five rules for client retention:
1. Keep lines of communication open
You must stay in touch with your clients, whether through face-to-face meetings, email or telephone.
“Clients need to know you are looking out for them,” Yates says. “They want to be kept informed about their investments, market developments and other issues.”
Some advisors assume it is sufficient to send clients periodic statements, but that is often not enough.
“Clients also want to be able to pick up the phone and speak to you,” Yates says. “You must be accessible or clients can lose confidence in you.”
2. Exceed expectations
Hartman recommends striving to exceed rather than meet client expectations, whether through service, the timeliness of your responses to their questions or other ways.
Yates agrees, adding that you should know your clients “inside out,” and set expectations that are achievable.
3. Listen to your clients
Getting client feedback, following up on that feedback and implementing feasible suggestions can go a long way toward maintaining long-lasting client relationships. Gathering feedback, Yates says, shows that you respect the views of your clients.
Demonstrating sincere interest in your clients’ personal and business affairs can also have a positive impact on your client relationships, Hartman says. For example, he suggests, refer your top clients to events that reflect their interests. This not only shows that you care but also that you have been listening to them.
4. Expose clients to a full suite of products
Clients are less likely to leave when they hold a broad range of products with you — such as RRSPs, other investments and insurance.
“The more products a clients owns, the greater their loyalty,” Hartman says. “You should expose them to your full suite of product offerings.”
5. Show appreciation
Demonstrate to your clients that you appreciate their business in a meaningful way, Hartman says. For example, instead of giving every client the same gift, give each client a gift that means something to them personally.
“You should know your clients’ preferences,” Yates adds. “So, if a client likes baseball, give them something related to baseball.”
Also, thank your clients for referrals. And, in cases of high-value clients, Yates says, “call them up just to say hello.”
Consider sending your clients cards and gift baskets on special occasions, such as birthdays and anniversaries and to celebrate life events. And you might host client appreciation-events. Just make sure your method of expressing appreciation suits your clients’ preferences.
This is the second part in a two-part series on client retention.