6 client management tips for advisors

May 18, 2022 2:16 PM

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Whether you are looking to communicate with clients in new ways or cut ties altogether, the advisor community has many resources at its disposal.

Everything from virtual reality to old-fashioned texting are just some of the ways wealth managers are staying connected these days. And for the sake of productivity, there is never a shortage of new ways to look at the business.

Here are six client management tips to consider for your practice.

The case for firing that client, after this documented procedure

As many as 97% of practice management professionals say that “serving too many non-ideal clients” is a “moderate” or “major” challenge to advisor productivity, according to a 2021 survey by industry research firm Cerulli Associates.

The decision to part company with a client is not easy, especially for advisors who are just starting out in their careers for whom revenue is a key factor. However, there are many reasons that make a client “non-ideal” and hence equally good reasons for going separate ways.

How do you know when something’s not right? “When you see their number come up, you don’t want to talk to them,” said advisor Liana Poodiack of Poodiack Wealth Management. “If you have clients that are like that, generally that’s an indication that maybe they’re not a fit.”

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The case for firing that client, after this documented procedure

5 prescriptions for bridging the client communication gap

Communicating clearly and effectively is the bedrock of an advisor’s relationship with a client. But while simple enough in concept, in reality there is ample opportunity for misunderstanding and error.

In many cases, the advisor-client relationship is inherently imbalanced from the outset. An untrained client seeks a professional advisor schooled in the intricacies of finance and knowledgeable in the terminology of wealth management, which is in all likelihood Greek to the inexperienced investor.

Indeed, given that by definition an advisor’s function is to make clear the investment options and opportunities for clients, bridging the communication gap is a prerequisite for success.

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5 prescriptions for bridging the client communication gap

How to have ‘the talk’ with clients when crypto tanks

Crypto is an inherently volatile asset class. While all asset classes go up and down over time, crypto’s ability to scale massive heights in incredibly short periods of time with major dips in between is perhaps unsurpassed.

From Jan. 1 to Nov. 29, 2013, Bitcoin rose by 8,660% from $13.22 to a peak of $1,158, but with five separate dips of more than 20%. In the 20-month period from May 2016 to December 2017, the digital asset grew by 4,443% to a high of $19,800 with six drops of more than 20%.

Advisors can allay the concerns of their clients who may not be accustomed to, or indeed comfortable with, such volatility by talking with them ahead of time about taking action before it hits and reacting positively after it does.

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How to have ‘the talk’ with clients when crypto tanks

How financial advisors can take the stress out of annual reviews

Annual reviews are now part of the calendar for wealth management firms. But these SEC-mandated internal reviews do not have to be a tension-inducing chore.

“The stress is largely in completing it at the end of the year without having done the interim steps throughout the year to lighten the load,” said Chris DiTata, vice president and general counsel of RIA in a Box.

Straightforward steps such as checking client accounts for the correct paperwork and staying on top of regulatory developments can make the difference between a smooth process and being written up for a poor review.

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How financial advisors can take the stress out of annual reviews

Is there room for virtual reality in wealth management?

When Bank of America became the first financial institution to use virtual reality training for its employees in October 2021, with simulated client interactions as part of its instruction, it became clear that the technology may have a key role to play in wealth management.

Mixed-reality use cases that combine physical and digital worlds are already being developed. Areas for client engagement under consideration include annual portfolio review, new experiences and events, and transforming the branch experience.

While concerns such as security and privacy exist, the opportunity to create immersive customer interactions, develop new offerings and improve collaboration is there to be taken by the wealth management community.

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Is there room for virtual reality in wealth management?

Why it’s time 2 txt ur clients and prospects

Texting has come a long way since its first incarnation in 1992. So far, in fact, that a recent study reveals that text messaging is the top area of opportunity for advisors to build and grow client relationships.

As much as 97% of Americans have a cell phone, and 85% a smartphone, while open rates for text messages stand at 98% compared to a meager 25% for emails.

Texting is so much a part of the fabric of modern-day life that it’s inevitable it should become an essential part of the advisor-client relationship, too.

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Why it’s time 2 txt ur clients and prospects