Yesterday’s BYB Daily article identified signs that a client might be a bad fit. If you have a client who is causing problems, it’s best to act before they begin to affect you personally and professionally.
You should end the client relationship when you feel it’s no longer productive or healthy, says Roger Tuttle, president of Annapolis Md.-based Tuttle Financial Advisors Inc. Otherwise, “emotionally, it will just suck you dry,” he says.
Here are a few ways to tactfully show a client the door:
> Don’t wait
Deal with the situation immediately if you feel the client’s behaviour is putting undue pressure on you and your staff.
“If you wait until it gets to a boiling point you’re just giving an opportunity for the client to be dissatisfied and take action [against you],” says Keith Weber, a certified financial planner and president of Weber Consulting Group in Fort Collins, Colo.
If the client has recurring issues with you, they probably won’t change, says Tuttle. When you find there’s an ongoing problem, and you feel you are justified in ending the relationship, it’s best to do so immediately.
> Talk to the client
If a client is constantly clashing with you, speak to him or her about your business philosophy.
Explain again how your business works and that you are concerned that it doesn’t match the client’s expectations, Weber says. Present the client with alternatives, including other advisors he or she can work with, so the client doesn’t feel left out in the cold.
“The last thing a client wants to feel is that they are being abandoned,” Weber says. “That only creates anger and potentially invites action [against you].”
> Put it in writing
Another way to let the client go tactfully is to write a letter.
Describe the situation politely and clearly in the letter and explain that you are ending the client relationship, Tuttle says. Let the client know that the manager of the branch or firm will be in touch with the client to see if a more suitable advisor is available.
“Write them a very nice letter,” Tuttle says. “Do it quickly [and] sever the relationship.”
IE