Become ‘indispensible’ to your clients

“You have to go beyond managing their portfolio and become deeply connected with them,” says Prem Malik, financial advisor with Queensbury Securities Inc. in Toronto.

Here are some steps you can take to become indispensible to your clients.

> Deepen client relationships
“You have to strive to know everything about your clients over time,” Malik says, “so that they can be comfortable talking to you about things that are unrelated to your role as their advisor.”

Adds Sajjad Hussain, vice president and private wealth counselor with Fiduciary Trust Co. of Canada in Toronto: “Always put them first and build trust and integrity.”

It is important to serve clients when they need you the most, Hussain adds, such as when the markets are not doing well. Also, communicate with your clients regularly and “always follow up on things you promise to deliver.”

> Use differentiated strategies
Find ways to add value to your client relationships, Hussain advises. For example, do not just focus on their investments; give them advice on things they are not necessarily thinking about, such as estate planning.

Step out of the familiar “box” and show clients that you care about their wellbeing. “Each client scenario is different,” Malik says, so you must be flexible and be able to provide a range of value-added services tailored to their individual needs.

For example, show them ways to save on taxes or how to build a consistent income stream, if that is what they need.

“Clients really appreciate when you go outside of the norm to help them,” Hussain says. “It sticks in their minds and reminds them of why they chose you as their advisor.”

> Host “smart” client events
Clients are accustomed to attending financial seminars and workshops that focus on products and investment strategies. Instead, invite them to non-financial events that focus on issues such as health, happiness or long-term care. Bring in outside experts on the subject who can share different perspectives. Provide clients with an opportunity to participate.

“Events such as these bring you closer to clients,” Malik says. “They deal with the real-life issues clients have to deal with.”

More important, they show that there is more to you than being their financial advisor.

> Be upfront about fees
“Always be transparent about fees,”Hussain says. “Never have hidden fees, and periodically remind clients about what they are paying.”

Hussain recommends having a tiered fee structure, in which fees decline as client assets grow. “The reduction in fees should be automatic,” he adds, “once client assets reach a certain defined threshold.”

It is satisfying, Hussain says, to be able to tell a client: “By the way, you will get a discount in fees.” That is especially true if the client reached the threshold not by adding assets but through growth in market value.

“Clients would love you for this.”