Doing good deepens relationships

– “What are you doing next?”

Conrad is a veteran advisor who celebrated his 60th birthday five years ago. To mark that occasion, he climbed Mount Kilimanjaro to raise funds for an orphanage in Haiti that had been devastated by the earthquake of 2010. While Conrad didn’t approach his clients for contributions, he did feature his training regimen and his progress toward his goal in his quarterly newsletter. And since that initial climb, he has done adventure challenges in Alaska and Morocco in 2012 and 2014, respectively, to raise funds for the same orphanage. He is planning a climb to Machu Picchu in Peru next year.

“I’ve had an amazing response from clients to these treks,” Conrad says. “A number of clients have offered to support me with donations. But, beyond that, many [clients] will start meetings by asking about the orphanage and what I’m doing for my next challenge.

“I think there are a number of reasons for this,” Conrad adds. “First, I’ve kept these treks top of mind with clients. I visited the orphanage to deliver the first cheque and featured photos of that in my newsletter and on my website, and I also have pictures of that visit in my office. In fact, when I meet with prospects, they’ll sometimes see the pictures and ask about the orphanage or about the things I’ve done.

“Second,” Conrad continues, “this [activity] wasn’t a one-off effort. I have built [my charitable money-raising efforts] into my routine to the point that clients now are used to it. The fact that it is unusual also helps. People are accustomed to weekend walks and runs to raise money, but my adventure treks stand out as being different. The cause also is a bit different; no one can quarrel with supporting a Haitian orphanage. Now that I’m 65, I think these treks also send a positive signal to clients about my health and energy level. In fact, I have had clients ask if I’d talk about my experience to friends who are considering a climb up Kilimanjaro.”

– Seeing you in a different light

James also uses his volunteer work to build deeper bonds with his clients. For the past decade, James and his family have spent a week each summer volunteering at a Habitat for Humanity build site in his community. But James doesn’t stop there. For the past five years, he has invited clients to a fundraiser for Habitat for Humanity at a local comedy club that features standup comics who donate their time.

“I’ve been astounded by the response to my work with Habitat for Humanity,” James says. “Clients really like the idea that this is something that I do with my wife and kids. A couple of clients have picked up on the idea and have started volunteering with their families.

“And the fact that I invite clients to the comedy-night fundraiser,” James adds, “lets clients see me in an entirely different light. The key is that there is absolutely no sales pitch here. [The event] is purely a chance to thank my clients and also to support a great cause. As one of the sponsors, I get to say a few words of welcome, so that helps as well. And this isn’t a high-cost event. I take 50 tickets at $50 each, so it costs me about $2,500 to send an incredibly positive signal to everyone I work with.

“What’s important,” James continues, “is that I’m not just writing a cheque. In fact, donating money is easy by comparison. It’s the sustained commitment of time and effort to which clients respond.”

– Getting the benefit of doubt

Jennifer, who runs a practice that focuses on group benefits, supports charities in Latin America. A few years ago, her church organized a group of volunteers to build a school for a remote village in Guatemala. Since then, Jennifer has helped to organize annual trips back to this village, working with residents to improve the water supply and irrigation for the fields. As part of her commitment, she’s also on the organizing committee for an annual fundraising evening at her church that features performances by local musicians.

“For many years, I sent clients a card at Christmas letting them know that in lieu of holiday gifts, I was paying for the education of children from a poor family in Ecuador,” Jennifer says. “I got only positive responses to that – no one needs another box of chocolates at Christmas.

“But nothing compares to the response from clients to the volunteer work I do in Guatemala,” Jennifer continues. “I’ve invited some clients to the fundraiser. They always have a great time and, when we meet, often will ask about how things are going at the village. And when we do have the occasional service stumble, clients are always understanding. It’s hard to get mad at someone who spends two weeks each year volunteering to help villagers in Guatemala.”

– Unexpected consequences

Martin is another advisor who volunteers. Six years ago, a client asked Martin to join the organizing committee for a gala evening to fund the annual Santa Claus Parade in their city. Martin’s efforts have grown each year – to the point that last year, he was asked to co-chair the event.

Here’s what Martin had to say about his experience: “This is a very big-time commitment, but it has been incredibly rewarding personally. What’s been entirely unexpected has been the reaction from clients. Clients love that I’m helping make the Santa Claus Parade happen, and a number [of clients] have mentioned that they were at the parade with their kids or grandkids.

“I’ve realized that clients want to feel good about their advisor, and this lets me show clients a different aspect of who I am.

“The other thing that’s unexpected is the way [this charitable work] has helped me broaden my network. The client who first asked me to join the committee still is involved and our bonds are much deeper as a result of the time that we’ve spent working on this. But I’ve also met members of the organizing committee whom I would not have gotten to know otherwise. And even though that was never my intent, two have approached me about taking on their investments. These are high-profile, successful people; one of them told me that he gets calls from advisors all the time, but working together and getting to know me made his decision to move his account to me easy.”

– Lessons you can take away

As I reflect on these conversations, I’ve identified four common elements that make these advisors’ charitable commitment work for them:

– Continuity. In no case were these one-off events. The advisors have volunteered their time for several years. Their efforts resonate with clients because the advisors are in for the long haul.

– Emotional appeal. In every instance, the causes these advisors selected tug at clients’ heartstrings and have an emotional connection. There’s nothing wrong with supporting the symphony or ballet in your city; but for most clients, that won’t create the same impact as the causes these advisors chose.

– Leadership. All four of these advisors have made very big commitments of time and taken a leadership role. The key to their success is that they haven’t just written cheques to support a charity; rather, they have rolled up their sleeves and gotten involved personally.

– Communication. Each of these advisors have sent clients a low-key but compelling message about what they are doing. Whether inviting clients to fundraisers or featuring the charitable work in newsletters, these advisors allow their clients to see them in a different light.

Volunteering is a very personal decision. While preferring to do it quietly is an absolutely legitimate decision, there’s nothing wrong with sharing your charitable activities with your clients. As you think about your volunteer work, consider whether there is an opportunity to use that work to allow your clients to see you in a new light. IE

Dan Richards is CEO of Clientinsights (www.clientinsights.ca) in Toronto. For more of Dan’s columns and informative videos, visit www.investmentexecutive.com.

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