Whether it’s a dramatic market sell-off, a systems breach or some other event that creates a crisis in the financial markets that affects your clients, you must contact your clients as soon as you have assessed the situation and can deliver a meaningful and comforting message.
“Although it is advisable to have a crisis communication plan, most advisors do not have one,” says Nadira Lawrence-Selan, marketing and communications consultant with Hathleigh Consulting in Woodbridge, Ont. “You must be prepared to deal with unforeseen events that can be very disruptive, making sure you put your clients first.”
Here are some strategies you can use in communicating with your clients during a crisis:
> Create a clear message
Clarity is of paramount importance in your communication with your clients.
You must have a thorough understanding of the crisis situation, says Lawrence-Selan, including its cause, its impact, how it might affect your clients and what steps you are taking to deal with it.
“Put on your ‘client’ hat,” she says. “Come up with a list of questions you believe they might be asking and address them in your message.”
You must be transparent and honest. “Trying to gloss over or cover up anything material can backfire,” Lawrence-Selan says.
As well, don’t speculate, or communicate information that is not necessary.
Adds Joanne Ferguson, president of Advisor Pathways Inc. in Toronto: “Let clients know that ‘we are in this together’ and that you are looking out for their best interests.”
> Be proactive
Clients typically become nervous during a crisis. “Contact them before they contact you,” Ferguson says. This step will give your clients the comfort that “you are on top of things,” she says, and that they should not be worried.
> Prioritize your communication
Often, it is not feasible to reach all clients at the same time. If this is the case, contact your most important clients first, or those who you know will have a bad reaction if they don’t hear from you.
“You should know how your clients want to hear from you based on information in their profile,” says Lawrence-Selan.
Ferguson recommends using all available methods to reach clients, including e-mail, letters and other forms of automated communication. If the situation permits, host a client event, where you can reach a large number of clients at the same time.
> Appoint a spokesperson
During a crisis, try to void having several staff members speaking to clients, Lawrence-Selan says. Your practice should have a “common voice” that deals with clients. Whether that is you or someone you appoint as spokesperson, this individual must be sensitive to the situation, have sound knowledge of the crisis and how you are handling it. Your spokesperson also should be personable and empathetic.
Most important, your spokesperson must be accessible, says Lawrence-Selan.
> Be honest and transparent
Avoid making promises or speculating on solutions.
“Make sure you can deliver on what you tell your clients or you could end up hurting your reputation,” Lawrence-Selan says.
If you do not have a solution, tell clients you are working on it and will be back to them. Be honest and transparent. Acknowledge the problem, show concern and take responsibility.