The good news is that problem clients are few and far between. The bad news is that you are likely to encounter at least one client who is difficult to deal with during your career.
“Every advisor I talk with can think of one or two clients they dread picking up the phone and talking to,” says Jordan Rosenberg, a coach with the Personal Coach in Toronto. “They’re usually [among] their top clients.”
That is one good reason why it is worthwhile to make every effort to resolve conflicts or difficulties with your clients before letting them go. Perhaps your client’s expectations are not realistic, or he or she has lost sight of his or her investment goals.
There are steps you can take to determine the cause of the problem and then attempt to improve the client relationship before calling it quits:
– Discuss expectations. At the end of a client meeting, ask your client about his or her expectations. Some of the questions you can ask are: “Are you getting value from what we are doing?” “What is your opinion of our relationship?” “What is missing from the relationship?”
This also is your opportunity to speak. Share your ideas on how to make this relationship a success with your client.
Rosenberg suggests you explain the responsibilities of both advisor and client, such as the client responding promptly to requests for a decision on a portfolio recommendation or being on time for appointments.
– Talk about goals. A client who ignores recommendations or who is not engaged can be discouraging for a financial advisor. One solution is to provide a friendly reminder to your client about the goals the client had deemed important at the beginning of the relationship.
Approach the conversation carefully, says Jennifer Black, an advisor with Dedicated Financial Solutions in Mississauga, Ont. You are not assigning blame, but asking if the client’s original goals are still accurate.
“You take a step back,” Black says, “and work as a team.”
– Same team, different advisor. The conflict could be a result of personality types that do not work well together. If you suspect that is the case, Rosenberg suggests, try delegating that client to someone else on your team who may be more suitable.
– Take a time out. Although Rosenberg recommends a “time out” as a last resort, this is still an option that can give both you and your client some breathing room without taking any drastic measures.
“Maybe the client has had a bad week and he or she is taking it out on you,” Rosenberg says. “Maybe you’ve had a bad week and you’re just out of sorts.”
Either way, you may want to suspend contact with your client for a few weeks. Then, revisit your conversation about values, expectations and goals to determine whether the two of you can still work together.
If the problems remain, your client may be what Rosenberg calls a “vampire.”
“They suck the positive energy out of you and your team,” he says, “and it’s not worth the money that they bring. Let them go.”
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