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Michelle Connell, CFA and adjunct professor of Finance at University of Texas in Dallas, has some straightforward advice.
“Get your clients on the phone... and shut up!”
In other words, listen. Call and then really listen to your clients.
Connell works with both private investors, and non-profit organizations. In an era of economic instability, she has dealt with more than her fair share of frightened, anxious and angry clients.
“Even the most rational and reasonable client can become emotional and sometimes even irrational when faced with investment losses,” Connell said. “As advisors, it would be easy to avoid conversations with these individuals.”
This wisdom is not just for those in financial services, but for all who attract and serve high-paying clients.
But Connell advises against “hiding under your desk” during these situations. For financial analysts like Connell, maintaining active communication channels is about more than great customer service.
“We have a fiduciary duty to reach out to clients and reduce their anxiety.”
You can apply that same level of duty and commitment to your clients no matter what field or industry you represent. Especially during times of crisis, approaching your clients needs with a sense of duty may set you apart from the hollow attempts of competitors.
Connell’s major note for starting a conversation with your clients is not just to shut up, but more importantly, to listen.
“Make sure you are letting your client speak!” implores Connell. “Clients already know their advisors are smart and experienced in their field. We don’t need to reiterate our knowledge and backgrounds. They hired us to give them confidence that their financial security is safe. In the middle of this economic crisis, they want to know that they have enough money to meet their needs and goals. Our strategy for these conversations should be for the client to agree and be happy with their long-term investment plan that will allow them to reach their goals. However, client satisfaction is in fact related to the amount of time that the client speaks! They need to do most of the talking regarding their needs and this plan.”
No matter what your specialty, you are an investment that the client is making, and they have a right and a need to be reassured that you have their interests at heart. Let’s be real, these are scary times for many, a little empathy is a valuable and rare commodity.
This approach to advising clients can be applied to any professional service.
“Start the conversation by gaining an understanding of how worried the client is about the economy and how it could impact them,” advises Connell. “Ask what they need you to address for them to have a reasonable level of comfort. Speak to their short and long-term needs and plans. If you need to do some research before you can respond, schedule a follow-up call within the week.”
It will take more work and time on your end, but by specifically addressing the client’s concerns you increase their satisfaction and confidence. That leads to retention and retention leads to profit.
