Consistent communication is key when it comes to client retention. Proactive communication and good customer service go hand in hand and firms that have a good communications strategy seem to be leading the pack.
According to Ray Henderson, a Partner and Director at Business Health, touching base with clients, particularly clients who are considered ‘A-class’ can help lift profits substantially.
On average, firms that contacted their best clients more than 10 times per year were able to generate up to 287 per cent more profit than firms who touch base with clients less than 5 times a year. ¹
Henderson suggests that firms looking to improve their communications strategy simply need to shift their perspective.
Although most firms make promises of providing financial advice that is tailored from the client view, he argues that advisers sometimes “talk in industry jargon and communicate things they think the client wants to hear” rather than truly focusing on what the client wants to achieve.
Building relationships are key when it comes to truly understanding a client’s objectives. As Henderson points out, “money is a given but building a relationship is not”.
The need for strong communication and a good relationship with financial advisers was perhaps most prevalent in the years after the Global Financial Crisis in 2008. During this time, firms that communicated regularly with clients were able to lift their average profit margin by 79 per cent.²
In addition to a proactive communications strategy, Henderson advises that firms need to make processes as transparent as possible. Besides the legal regulations around disclosure, firms should put everything down on paper and make sure that clients understand all advice.
Want to learn more?
To find out more about how you can strengthen your communications strategy with clients and ultimately boost your firm’s bottom line, register to view the recording of our webinar with Ray Henderson by clicking on the button below.
1 “The value of effective communication,” Professional Planer