Source/Contribution by : NJ Publications
Our entire advisory practice revolves around pleasing our customers, we put in our best, we engage in practices fulfilling our client needs, and creating a league of happy and satisfied investors. But often, there is a gap between our perception of what clients need from us, their satisfaction and what they are really looking forward to.
A major percentage of your clients won't communicate their preferences in words. Due to the implicit nature of the client partner relationship, doctrine of substitution has a major role to play. We need to step into the shoes of clients at large and assess their lookout.
To make things easier for you, here are some common traits which most investors are looking for in their financial advisors:
A Relationship of Trust: A client would be comfortable entrusting his/her money and personal financial information to someone only if the client trusts him/her. A client partner relationship can survive only if it's based on trust, and building trust is not a day's process, it evolves over time and a number of elements go into it, two prominent ones are:
Ethics: People will trust you if you are ethical in your conduct, when you maintain integrity and high professional standards, and when you place your clients' interests above your own. Your ethical conduct will let people believe that the financial planning and investment activity will be in their best interests. So, be honest and stick to your ethics even if it means losing the client.
Knowledge & Experience: Another factor that goes into winning trust is your credibility, which banks on your knowledge about the products and the industry, practical application of financial planning concepts and your experience. A wise financial advisor is trusted by clients because of the fact that he is qualified and has the ability to deliver right advice.
Communication: One basic expectation that all investors have from their advisors is timely communication. People appreciate being informed about industry updates, new products in the market, regular review and performance of their portfolios, etc. Proactiveness in communication keeps investors in the loop and instills confidence in them, plus it helps in taking right decisions in time. Investors do not like being kept under false impressions, so it's important that you communicate the risk associated with investments, communicate even when things are not going right, because of bad markets or because of a bad decision. Timely communication is essential so that you can focus on the solution, instead of accelerating the problem.
Concern: Another universal desire most investors have from their advisors and which often goes unsaid is, they like being cared for. They want their advisor to listen to them, and base their advise on their unique needs and financial position. They must feel that you genuinely care for them and you are working in their best interests. Advising is about micro level servicing even if you have a thousand clients. When you go to see a client, quickly run through the client's profile, and his goals, because you are not exhibiting concern when you don't remember the basics about the investor. An investor will be comfortable talking to you, sharing his life story when he/she senses your authenticity.
Safe Returns: Investors want high returns, but they also don't want to lose their money. So, it's important that you explain to them the risks associated with different investment products. Risk cognizance will prevent investors from taking wrong decisions, when the risk comes to play. Also it won't fall on your shoulders since the investor was aware of the risk and took an informed decision. Also, your choice of investments and portfolio management can significantly bring down the risks.
Human Touch: Consider the example of a dietician and his/her patient. The Patient can easily source a good diet plan suitable for his body, the kind of foods he should/should not eat, that he should exercise to cut the extra fat from his body. But he prefers going to the dietician for the human touch, when the dietician asks him about his unique needs and preferences and prepares a plan “just for him”. The Dietician personally follows up on the progress of his weight loss and appreciates the patient for the efforts he is putting in. This relationship could never be established between him and google, which takes him to the dietician. Here, the advisor is the dietician and investor is the patient. Investors choose Financial Advisors over Robos for the human element, they expect to connect with you on an emotional level. So, try to build a relationship with the client which is beyond business. Empathize, Care, Share, Celebrate.
So, the above were a few points which most investors are seeking from their advisors. There are a lot of things, much simpler than what your doing, which can draw you closer to your clients. You just need to adopt a personalized approach to cater to people, gauge their unique needs and work on them.
{s}
[[script type="text/javascript"]]
$(document).ready(function(){
new DiscussionBoard("divDiscussionBoard", "1167", "http://www.njwebnest.in/esaathi/index.php/discussion").load();
});
[[/script]]
{/s}
