Managing Your Clients Through Turbulent Times

Well the stock market has gone to 10 year lows. Has it hit the bottom? That is not necessarily the crucial issue although this downward spiral will be raising more fears. What is crucial is how you handle this situation in terms of your own behavior and managing that of your clients. If you read my last blog you will see research is showing that advisors are on the whole not going far enough in client discovery and in particular understanding behavior.

Here are some tips for managing your clients which are all based on having greater behavioral understanding:

  1. Help your client to objectively face the reality of their situation. This requires understanding how they will innately respond to times of change and difficulty. Are they a rational decision-maker or a procrastinator?
  2. To make your clients feel comfortable and respond to your advice communicate on their terms not through your lens.
  3. Re-evaluate your clients risk tolerance – most measures of risk tolerance are situational. You really want to know their hard-wired risk tolerance as this will be the paradigm from which they make decisions now and in the future.
  4. Build a behavioral portfolio for your clients – base the asset allocation on who they are.
  5. Review the clients product suitability from a behavioral standpoint.
  6. Re-build the overall financial plan recognizing who the client is and their changed circumstances.
  7. Critical to helping your clients move forward is to help them find what their true life purpose is. After all they will still be breathing tomorrow. So lets get a positive state of mind on how they will live their life.
  8. Review your client service team. Have you got “round pegs in round holes” for serving the clients? The advisor client match process is very important.
  9. Transform the client experience you provide. Look how you can make every aspect of it totally client centric and you will be amazed at the bottom line results.
  10. Project positive energy and confidence. This means being very comfortable with who you are and your planning approach. People like animals sense fears and will react.

Remember times of change and difficulty bring opportunity. Are you up to it?

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1 Comment on "Managing Your Clients Through Turbulent Times"'
5 years 9 months ago
Hugh, If an Advisor does not what is his strenghts and struggles,to make it worse he does not have a proven process to manage himself, how can he manage clients behavioral without knowing who they are in a deeper level.