Clients can become dissatisfied for many reasons. They might not be hearing from you as frequently as they would like; they may be upset about what they believe is poor service; or their investment returns may be below expectations.
Whatever the reason, you should get to the bottom of the cause of their dissatisfaction. “Clients always want to feel that you’re taking care of them,” says Francis D’Andrade, vice president with Fit Private Investment Counsel Inc. in Toronto. “Never pass them on to your assistant.”
Here are five tips for dealing with clients who are dissatisfied:
1. Listen carefully
“Meeting [your clients] face to face is usually best,” recommends Nadia David, director of communications with Precidia Communications Inc. in Mississauga, Ont. “Listen carefully and try to get as much information as possible about why they’re unhappy. Do not make assumptions about why they might be upset.”
Acknowledge the client’s feelings, D’Andrade says, by saying: “I can see that you’re clearly upset.”
Showing that you understand the client’s feelings, D’Andrade says, will help get the client talking.
2. Remain calm
Let your client blow off steam and vent his or her frustrations, if necessary, without interrupting and while remaining calm yourself, David says.
Once the client has had this opportunity, he or she will be easier to deal with. This will allow you to “defuse” the situation, D’Andrade says.
Usually, the problem is manageable, David says. But you must first know the underlying cause of the client’s frustration.
3. Accept responsibility
Take ownership of the problem, David says, because clients typically believe they’re right.
“Do not to become confrontational, make excuses or cast blame,” she adds. If you accept responsibility for any perceived shortcomings, you will regain the client’s confidence.
“Clients will forgive a lot of things” D’Andrade says, if you accept responsibility.
The solution could be as simple as saying, “I’m sorry I didn’t respond.”
4. Revisit expectations
The threshold of dissatisfaction is different for each client. It is, therefore, important that you revisit your client’s expectations, goals and objectives.
If, for example, portfolio underperformance is the cause of dissatisfaction, explain the cause of underperformance. “Be accountable for the recommendations you made,” David advises.
But also explain the nature of markets and investment risk. Perhaps you misunderstood your client’s risk profile or expectations.
At all times, be honest and upfront, David says. “It’s a sure way of building trust.”
You can end up cultivating a life-long relationship with a dissatisfied client if you resolve the problem to his or her satisfaction.
5. Get buy-in
However you resolve the situation, make sure your client understands and agrees to your proposed solution.
“You must get clients’ buy-in,” David says.
Offer alternative solutions, if necessary. Sometimes, you may find that the needs of clients are different from their wants. That is why it is necessary to set clear expectations to avoid dissatisfaction in the future.
If the client is still dissatisfied, it might be necessary to offer him or her the opportunity to find another advisor.