Focus on the Behavioral Coaching of Clients

Have you ever fully dissected the value of the service you are providing to your clients? This is an exercise that I highly recommend you do as a way of reviewing the value proposition to your clients and the brand promise. Whilst many advisors do not want to be measured solely on the investment performance, this is what typically happens. It is easy because the results are reported in a very tangible way.

However, the real value of what you do is in the behavioral management of your clients. That is how you manage the impact of your client’s emotions on their decision making through the ups and downs of the markets and life. As an advisor, ?your role is more than the education of your clients about the technical investment and financial management issues. Further, it is more than teaching your clients behavioral self-awareness. Your role is to guide the client and positively influence their behavior. This is behavioral coaching.

For years, many advisors have dismissed the behavioral work as soft and not measurable. Recent research by Vanguard in their Alpha Advisor report states that behavioral coaching is worth 150 basis points a year. Lets say you have average AUM of $1m per client, this is $15,000 per client. This level of value is too big to ignore. This is predicated on the basis that the value of an advisor is 300 basis points and behavioral coaching is worth 50%. Other research studies from Dalbar would support these conclusions.

I encourage you to read the Vanguard research and do a review of your value proposition. Will it change how you present your services and the types of tools you will use to reinvent yourself as the behavioral coach of the client? You can access the Vanguard research at the following link Advisers Alpha: Putting a value on your value.

Hugh Massie

Hugh Massie

Hugh Massie - President and Founder of DNA Behavior International

Hugh Massie is a Behavioral Finance Strategist helping people and organizations worldwide "behavioralize money". His purpose is to guide people to be Behaviorally SMART for achieving greater financial empowerment so they can live with meaning and unlock their human potential.

Hugh liberates investors, advisors and organizational leaders with a unique blend of financial personality and economic insights to make improved life, financial and business decisions.In particular, he helps people become more self-aware so they do not make emotional decisions under pressure which sabotage their relationships and long-term horizon goals.

Hugh has over 60,000 hours of experience serving millions of investors with assets of $1 to $1 billion+ and the leaders of more than 2,500 businesses in 123 countries. (

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