Clients may become dissatisfied for a variety of reasons. Maybe their investment returns are below expectations. They may be upset about poor client service, or perhaps they are not hearing from you as frequently as they would like.
Whatever the reason, “it is the advisor’s job to keep their clients happy,” says Prem Malik, chartered accountant and financial advisor with Queensbury Securities Inc. in Toronto. Typically, satisfied clients are loyal. They can spread the word about your practice and provide referrals, Malike says. But dissatisfied clients can have a negative impact.
“[You should] have a process in place to deal with dissatisfied clients,” advises Jonathan Rivard, financial advisor with Edward Jones in Richmond Hill, Ontario.
Here are some simple rules for dealing with clients who are less than thrilled with your service:
> Listen with empathy
“A face-to-face meeting with the client is usually best,” suggests Malik. During that meeting, get as much information as possible on the cause of dissatisfaction.
“Try to understand how we got to where we are,” advises Rivard.
Adds Malik: “Our job is a listening job. Get to the reason why the client is in front of you.”
> Remain calm
If you allow your clients to “blow off steam” or “vent their frustrations” they will most likely become much easier to deal with. Just make sure you stay calm. Very often, the cause of dissatisfaction is manageable.
> Accept responsibility
There are two main causes of client dissatisfaction, according to Malik. Either the client’s expectations have not been met or they were not well understood by the advisor. Either way, a breakdown in client/advisor communication is probably the cause of the problem. And if that is the case, the advisor is accountable.
“You must accept responsibility for the problem, Malik says. “The client is always right.”
Taking ownership of the problem allows you to take steps to regain the client’s confidence.
> Propose a solution
Revisit the client’s goals, objectives and expectations in the course of proposing a solution, Rivard advises. For example, if portfolio underperformance is the cause of dissatisfaction, explain the cause of the underperformance.
“Do not cast blame ,” Malik advises. “Be accountable for the recommendations you made. The only way to resolve the issue is to be honest and up-front.”
> Get feedback
Obtain a reaction from the client immediately. Ensure that the client understands and agrees to your proposed solution. Offer alternative solutions, if necessary.
By doing this, “you’re setting clear expectations,” Rivard says. “The needs of a client are sometimes different from their wants,” he says. That’s why it’s essential that you and the client understand each other. Helping them understand the products and processes you use will help prevent future misunderstanding.
> Think long-term
You can end up cultivating a life-long relationship with the previously dissatisfied client if you resolve their problem to their satisfaction. You will earn their trust and they will have confidence that they can come to you for a solution.
> Offer an “out”
If the client is still dissatisfied, “offer them an out,” suggests Malik. If you have lost the clients trust, questions will always arise. In that case, “it is better to let them move on.”
IE