Effective communication begets thriving client-advisor relationships. Financial professionals need to infuse elements of trust, clarity, and confidence into each interaction to create lasting value. Consider these dos and don’ts as you look to refine client communication in 2025.
The Dos
1. Do Listen Actively
Clients want to work with financial advisors who take the time to validate their needs and concerns. Be mindful that you address their personal and financial goals. Listening engenders trust and allows you to come up with solutions that meet their lifestyle and objectives.
Active listening techniques like mirroring can result in more dynamic communication and deeper connections. It’s always a good idea to summarize your client’s statements so they can set the record straight if you mischaracterize anything.
2. Do Keep It Simple
You might be inclined to show off your knowledge by using industry terms. Financial jargon can be obtuse and have the opposite effect, weakening your message. It’s best to pare down complex financial concepts into more accessible language. This is especially important when working with people whose first language isn’t English or who are new to investing.
3. Do Communicate Regularly
Consistent and proactive communication nurtures any client relationship. Make time and space to check in with clients regularly, even if it’s a casual “how are things going?” email. Regular touchpoints let them know you’re invested in their financial well-being and don’t have an agenda.
4. Do Personalize Your Approach
Every client is a unique individual. You should approach each interaction as if they’re the only one in your practice. Personalize your communication with relevant details that let them know they care about them as a person, first and foremost. A CRM is great for capturing personal details, such as birthdays, employment information, and investment preferences so you can make your outreach sound more human and less automated.
5. Do Establish Transparency
Clear expectations set the tone for a healthy client-advisor relationship. Disclose fees, potential risks, and reasonable results. Share visual tools like reports or graphs to support your points and provide clarity. Having honest conversions is how you can earn long-term loyalty.
The Don’ts…
1. Don’t Overpromise
Be careful about making promises or claims you can’t deliver. Money is a very emotional topic and the last thing you want to do is let someone down. Overpromising can erode trust and harm your personal and firm’s reputation.
2. Don’t Rely Solely on Email
Email may be your go-to for communication, but it’s not necessarily the best venue to deliver bad news or navigate complex conversations. Whenever feasible, save important discussions for phone or video to give them proper weight.
3. Don’t Avoid Difficult Conversations
If market conditions are creating widespread anxiety or a financial plan underperforms, resist the urge to disengage. Tackle tough topics head on and offer solutions and reassurance that you’re going to be there for them no matter what. Clients will appreciate your willingness to engage even when the going is tough.
4. Don’t Use Generic Templates
Canned or impersonal communication can be a turnoff. Generic messages don’t inspire confidence that you’re in the business to meet their individual needs. Add personal details to all your communications to show you care enough to take interest in their personal lives.
5. Don’t Neglect Feedback
Client feedback of all varieties can prompt you to improve and become the best version of your professional self. If you encounter criticism, take it in stride. Address it professionally and take proactive steps to correct course.
In general, it’s good practice to create an open environment in which clients feel comfortable sharing their feedback. Surveys or post-meeting follow-ups can be the right time and place to seek out this information.
Take Your Client Communication to the Next Level
Communication is king. With that in mind, look to Docupace to bring a new dimension to your advisor-client interactions. Docupace’s solutions automate and simplify critical processes, leaving you more time to focus on fostering meaningful client relationships. Click here to learn more and schedule a discovery call.
