Most of your clients lead busy lives. You stay in touch regularly to reinforce your value as an advisor.
Then there are a handful of clients who pose the opposite challenge: They check in with you too often.
XYou welcome client inquiries. But sometimes their incoming calls and emails prove a bit much.
It's understandable that they're in close contact when undergoing stressful events such as divorce or selling a business. But in some cases, they may ask you about trivial matters.
Ideally, you'd like to say to them, "I'm here for you. But can you wait a few weeks and come to me with a list of five questions rather than calling me five different times with five separate questions." Yet, that's a risky strategy if you care about retention.
"I love the incoming calls," said Erika Safran, a New York City-based certified financial planner. "If a client calls you more than you want them to, that means there's something they need that you have to provide."
Over her 30-year career, Safran has found that the best way to respond to such clients is to open more communication channels. By proactively contacting them more regularly, she preempts them from contacting her as much.
"When a client calls once a week on minor matters, it is likely they want more of our attention," she said. "So I'll initiate more frequent calls with that person, asking what's up this week or if there's anything they want to talk about. Over time, that resolves it and they don't call as much."
Assign Homework
Advisors who serve lots of retirees may find themselves on the receiving end of more requests. That's because seniors with time on their hands may find more reasons to reach out to their planner.
For example, Safran fielded a call from an elderly client who lost his driver's license and didn't know what to do. She researched the steps online and guided him through it.
"It would've taken him 20 or 25 minutes," she said. "We did it in seven."
On those rare occasions when a client has called too often, Safran takes creative steps to address their concerns. When a client's relative called repeatedly about buying property, for instance, Safran requested that the individual gather some data before their next chat.
"If they keep calling over similar things — variations on the same topic — I'll give them an assignment and then we schedule a meeting," she said. "Otherwise, we're having the same conversation over and over again."
Advisors may feel overwhelmed by a client's onslaught of calls and emails. That's especially true if the communication becomes routine, as opposed to stemming from a temporary or time-sensitive situation.
"In some cases, I've said to the client that his question is best left for our next in-person meeting or that we can address this other question in our next phone call," said Jeremy Levinn, a certified financial planner in Philadelphia. "But I always tell clients to call me or email me. That's why we're here."
Fee Hike
New clients may contact their advisor more frequently at first, especially as they get accustomed to the relationship. Setting reasonable expectations helps both parties engage in more efficient forms of communication over time.
Levinn recalls a new client in his 50s who was used to managing his own finances. It took a while for him to delegate various duties to Levinn.
"For a few weeks, I might get a dozen emails a day," he recalled. "That was clearly what he needed to do to gain peace of mind and understand the process and where we were going."
Eventually, the client grew more comfortable letting go. Levinn earned his trust and no longer receives the same volume of inquiries.
For advisors who charge a retainer, managing clients who check in too often can present a challenge. Individuals who demand too much of a planner's time can prevent advisors from tackling other responsibilities.
Eric Gabor, a certified financial planner in Jersey City, N.J., had a client who texted him often. Examples included asking Gabor to help him secure renter's insurance or get the routing number for his bank's checking account.
The client was paying a retainer of $400 a month, so Gabor decided to increase his fee. But rather than say, "I'm raising your fee because you text me so much," Gabor handled it more diplomatically by saying, "I'm adjusting your fee to compensate me for the value that I provide."
"A lot of my clients are millennials who often text me," Gabor said. "It may be about something trivial, but they want to get it out of their head."
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The post Advisors' Smart Steps To Stop Clients From Checking In Too Often appeared first on Investor's Business Daily.
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