Excerpted from “It’s All About The Client”, by Frank LaRosa
The last half of 2022 for the financial services industry was defined by a swinging pendulum of market fluctuations which resulted in a decided upward trend in client turnover throughout the industry, which is directly correlated to and an unfortunate side effect of turbulent markets.
What is interesting; however, is that client turnover need not be an eventuality of a down market. In fact, not only can market fluctuations afford a massive opportunity for client retention, but for the savvy advisor these market times allow them to position themselves in such a way as to reap the benefits from industry-wide client turnover. All it takes is a few insightful operational and marketing strategies to pivot client relations for a practice into growth mode.
First and foremost, advisors must become laser focused on client communications during down market times. To whatever degree an advisor feels comfortable reaching out to their clients, they should stretch well beyond that when market returns are in the negative. By overcommunicating during difficult market times, and not shying away from hard conversations, an advisor establishes themselves as both as a thought-leader and resource for intelligent information on the markets. Further a heightened level of trust is built between advisors and their clients by building transparent and open communication.