One of the most effective tools for improving client loyalty and gaining new perspectives on your business is a client advisory board.

“[A CAB] helps to demonstrate commitment to clients and it also gives you an insight into your business that you can’t get anywhere else,” says Julie Littlechild, president of Advisor Impact Inc., which has office in Toronto and New York. “The ability to which you can partner with your clients is definitely a driver of client engagement.”

Follow this expert advice to start your own client advisory board:

> Set goals
Ask yourself what your objectives are for running a client advisory board, says Littlechild.

Your goals should cover a specific area of your business but still be broad enough in nature to generate conversation. For example, if you are considering adding to your range of services, you might ask clients how they feel about the services they receive from you.

“Having a really clear strategic plan in place can be one of the most important things that you can do,” she says. “Otherwise, [the CAB] will die on the vine.”

> Be selective
Invite a specific group from your clientele who can relate to the CAB’s objectives.

Over the past seven years, Bev Evans, a vice president and investment advisor with Richardson GMP Ltd. in Mississauga, invited specific clients to her five client advisory boards. For example, in one case she invited high net-worth widows to the event; for another, she invited the adult children of her high net-worth clients.

Asking different groups of clients to attend the meetings helps keep ideas and opinions fresh, Littlechild says. Be clear in explaining to clients when you first invite them that you may ask a different group to the next meeting.

> Right-size your group
Make sure your CAB is not too big and not too small — that is, large enough to keep the conversation dynamic, but small enough that everyone has a chance to speak.

The ideal number is between eight and 12 people, says Littlechild. To prepare for no-shows, make sure 15 people confirm attendance before the event.

> Give clients some homework
Get your guests thinking before the meeting with a few questions.

About a week before the event, send invited clients a list of five key questions you plan to discuss, says Evans.

In the past, Evans has asked questions such as: what services are you getting from the team that you value? What are the services that you don’t want or need?

Use your discretion to decide whether clients would prefer to receive the questions in a formal letter or an email.

> Find the right venue
Consider the kind of atmosphere you want when choosing a venue for the client advisory board meeting.

For example, you can hold it in a formal setting such as your office, Littlechild syas, or a focus group facility, where the conversation can be recorded. Alternatively, you can invite guests to a restaurant for a more informal social event.

If you hold the meeting at a restaurant, it’s best to arrange a dinner, says Evans. Clients may have to rush to another appointment if it’s a lunch meeting.

“For a dinner you can also make it an appreciation event,” Evans says. “And [clients are] more relaxed.”

Next week: more tips on execution and follow-up

IE