Want a Better Advisor-Investor Relationship? Try These 5 Communication Tactics - PreciseFP

Want a Better Advisor-Investor Relationship? Try These 5 Communication Tactics

In the realm of financial advising, staying connected with clients is crucial. It’s not enough to communicate only during reviews; life is happening constantly, and your clients have diverse moments worth acknowledging. Whether it’s age-related milestones or personal events like a move or welcoming a grandchild, these moments matter. Recent studies show that 88.2% of clients consider their advisor’s communication style and frequency when deciding to stick around. Surprisingly, almost half of clients wish for more contact, especially those with higher net worth and those under 60.

Despite this, many firms haven’t formalized a solid communication plan, neglecting its importance. This blog will unravel five easy strategies for wealth management firms to enhance their client communication today, aligning with the evolving expectations of today’s investors.

1) Listen for Your Clients’ Preferred Communication Style

It may sound counterintuitive, but the best way to improve your communication and relationship with clients is to stop talking and start listening instead. Take the time to understand your client’s financial goals, concerns, and values. Take note of their preferred communication style — is it via digital channels, phone calls, or regular emails? Are they a visual or an auditory learner?

By practicing deep listening when in active communication with your clients, you can demonstrate genuine interest and empathy, thereby deepening your relationship and building the foundations of trust that are so important for advisors.

2) Be Clear and Transparent

While it may be commonplace to use industry terms or complex financial concepts in your day-to-day life as an advisor, it may not be as intuitive to clients. Accordingly, make sure all your communications are clear and easy to understand. Your goal should be to help your clients understand what you have to say, so cut the jargon.

With that in mind, make sure you practice open and transparent communication about everything from fees to potential risks. Your clients should feel informed and know they can trust you not to shy away from the honest truth.

3) Give Frequent Updates

Almost half of clients wish their advisor would communicate with them more regularly, with only 21.9% of clients saying their advisor contacted them “very frequently.” If you want to improve your communication with clients, upping your frequency and varying your modes of communication is a great place to start. You should be communicating with your clients as often as necessary about things like:

  • Goal check-ins
  • Market changes and shifts
  • Reviews of their portfolio
  • Financial best practices

Why should you invest in more communication time? Because it pays off. Another survey found excellent communication was one of the top three most important factors clients considered when choosing an advisor. If you want new business, making a reputation as a great communicator is a great way to start.

4) Education

Your clients should see you as a source of information, not just an advisor. Communication gives you a chance to empower your clients and build your position as a trusted thought leader. Here are some ideas to get you started:

  • Send a regular newsletter with market insights and trend analysis.
  • Explain complex financial concepts in simple terms to help your clients understand your strategies and expertise.
  • Share commentary on recent events and market shifts on your social media channels.

5) Employ Technology

Enhance your client communication effortlessly with PreciseFP.com – the go-to software for your tech toolkit. It takes the lead in addressing service needs, offering monthly engagements and making things smoother for your clients with pre-filled forms. Easy customization lets you build what you need, and setting a regular communication cadence becomes a breeze. Embrace technology to improve communication, as highlighted by a 2023 survey where 57% of respondents saw it as a key way to deepen client relationships. Ready to boost your client connections? Explore how PreciseFP can make client engagement a breeze. Reach out today!

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