Real challenges advisors face: Keeping clients informed

Real challenges advisors face: Keeping clients informed

by Jon Lagerstedt, Wells Capital Management

Keeping clients informed fills a void that they might otherwise fill with not-so-good assumptions. Todd Crawley and Jon Lagerstedt provide helpful tips.

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Jon Lagerstedt: Keeping clients informed is a great opportunity to set yourself apart. I’m Jon Lagerstedt.

Todd Crawley: And I’m Todd Crawley.

Jon: And this is The Essential Practice. In episode 217, we discussed another real challenge advisors face, which was about having that diversification conversation with your clients. And, Todd, you articulated it well by saying that in addition to the obvious benefits to the client, it helps “keep clients in the advisor’s chair.”

Well, this week, we’re talking about keeping clients informed and why that matters.

Todd: Yep, we’ve talked about this ad nauseam on these programs, but if you never call that client up—or that prospect, but especially the client—then that vacuum is left for them to assume. And those assumptions can be filled with not-so-much-positive things for the advisor.

Jon: Excellent point.

Todd: It’s communication.

Jon: So what are your thoughts on how an advisor might approach this situation?

Todd: Jon, it comes back to something I’ve learned over the years, and that is advisors have to have conviction and they have to have an opinion.

This is going to sound hokey, but if I go into a store to buy a shirt and a tie, I want somebody to say, “For this blue shirt, you need this tie; this will look great with a gray suit.” I don’t want them to say, “Well, what do you think?” Because, automatically, then I’m starting to question [their expertise]. But if I walk in and that salesperson has conviction and says, “This is the tie you need,” I don’t even really question it. I say, “You’re right; that works.” And I think that’s the same thing with an advisor.

People, I think, especially in their finances, want somebody to tell them what they are doing, why they are doing it, have an opinion, and have conviction about that opinion. That, I think, makes the client feel so much more comfortable [knowing] their advisor and team are on top of things. They may not agree, but they at least know and understand what they are doing. And they believe in what they are saying.

Jon: And I think you bring up a great point of having a real sound client service model where the advisor is in communication, is in contact, with their clients, front and center—to your point, Todd—and if you’re providing that level of service, that’s the kind of accolades you want your clients singing from the hilltops: “My advisor does a fantastic job. I know exactly why my portfolio is doing what it’s doing. I don’t have to call him; he calls me.” That’s a powerful referral network!

Todd: Sure is.

Jon: Well, that’s all the time we have this week. Until next time, I’m Jon Lagerstedt.

Todd: And I’m Todd Crawley.

Jon: And this is The Essential Practice.