Over the course of your career, you have likely had a rocky relationship with at least one client, who has either threatened to leave or who has jumped ship to another advisor.
In a situation like this, you shouldn’t just let the relationship float away, says John Pappas, who is the associate director of relationship management with Moody’s Analytics/CSI Global Education in Toronto. Instead, Pappas says, you should conduct a pre-emptive “exit interview” in an effort to win back that client’s business. “Hiding under your desk and hoping things will get better just doesn’t work,” Pappas says.
Pappas offers some tips on how to run this type of interview to mend the relationship:
> Identify the problem
Before jumping into the interview process, it’s a good idea to reflect on where and how the relationship began to erode in the first place.
For example, was your client unhappy with the frequency of communications? Were they displeased with the rate of returns on their investments?
Before your meeting, revisit the expectations that you and your client established at the beginning of the relationship. From there, you should be able to identify where things went off the rails.
> Prepare casual questions
If, after your review of expectations, it still isn’t clear why your client is considering jumping ship, compile a list of questions that will help you identify the root cause of the problem.
Avoid being adversarial with your client. You want to explore why the client is upset. This isn’t supposed to be a cross-examination.
With this in mind, Pappas recommends working your questions into a casual conversation — no clipboards. “You are likely to find out much more in a casual conversation than you would in a formal interview process,” says Pappas. “The client will likely be more relaxed and open.”
> Set the right tone
You might think that a phone call with an unhappy client will suffice. But Pappas recommends that you try to organize a face-to-face meeting.
One idea might be to organize a casual lunch with your at-risk client. Pappas says meeting outside of the office would be best because it is “neutral territory.”
“If you go through the process in a formal atmosphere, like your office, it could raise the ante with the client and they could get their back up even further,” says Pappas.
Be mindful of the tone you are setting: “the key is to make it not feel like an interview at all,” Pappas says.
> Re-establish common ground
Once you are familiar with your client’s concerns, and how you might mend fences, ask for the client’s permission to try again.
Unbeknownst to you, there might be a quick fix that can save the relationship and allow you to carry on.
When asking for a second chance, propose a probationary period, which could be anywhere from one to six months. At the end of that period, agree with your client to meet again to revisit expectations and see if the relationship can be salvaged.