Research shows the increasing importance of advisors having a solid communication plan in place with their investors.
A 2023 Nasdaq study found 88.2% of clients take into account both their advisors’ communication style and frequency when considering whether to retain their services. What’s more, nearly half (47.1%) of clients reported a desire for their advisor to contact them more than they currently did. This was especially true for higher net-worth clients and clients in the age demographic under 60.
Despite the growing evidence backing up frequent and personalized communication, many firms still lack a formalized communications plan and have historically dedicated little resources to implementing, measuring, and improving their communication with clients.
In this blog, we’ll break down five simple strategies wealth management firms can put into place to start improving their communication with clients today.
1) Listen Better
It may sound counterintuitive, but the best way to improve your communication and relationship with clients is to stop talking and start listening instead. Take the time to understand your client’s financial goals, concerns, and values. Take note of their preferred communication style — is it via digital channels, phone calls, or regular emails? Are they a visual or an auditory learner?
By practicing deep listening when in active communication with your clients, you can demonstrate genuine interest and empathy, thereby deepening your relationship and building the foundations of trust that are so important for advisors.
2) Clear Communication
While it may be commonplace to use industry terms or complex financial concepts in your day-to-day life as an advisor, it may not be as intuitive to clients. Accordingly, make sure all your communications are clear and easy to understand. Your goal should be to help your clients understand what you have to say, so cut the jargon.
With that in mind, make sure you practice open and transparent communication about everything from fees to potential risks. Your clients should feel informed and know they can trust you not to shy away from the honest truth.
3) Communicate Frequently
Almost half of clients wish their advisor would communicate with them more regularly, with only 21.9% of clients saying their advisor contacted them “very frequently.” If you want to improve your communication with clients, upping your frequency and varying your modes of communication is a great place to start. You should be communicating with your clients as often as necessary about things like:
- Goal check-ins
- Market changes and shifts
- Reviews of their portfolio
- Financial best practices
Why should you invest in more communication time? Because it pays off. Another survey found excellent communication was one of the top three most important factors clients considered when choosing an advisor. If you want new business, making a reputation as a great communicator is a great way to start.
4) Educate Your Clients
Your clients should see you as a source of information, not just an advisor. Communication gives you a chance to empower your clients and build your position as a trusted thought leader. Here are some ideas to get you started:
- Send a regular newsletter with market insights and trend analysis.
- Explain complex financial concepts in simple terms to help your clients understand your strategies and expertise.
- Share commentary on recent events and market shifts on your social media channels.
5) Use Technology to Streamline Communication
Last but certainly not least, technology can help your firm improve communication. A 2023 survey found that one of the top three reasons firms invest in new technology was its potential to improve communication — 57% of respondents said technology would help them improve communication with existing clients and deepen their client relationships.
For example, tools like Docupace can help firms streamline their back office processes so they have more time to spend with clients. Going paperless can also improve formerly tedious and inefficient tasks like onboarding, making it easier for advisors and clients alike to stay organized, compliant, and on the same page.
If you’re ready to improve your client relationship with better communication, check out how Docupace can improve RIA productivity and more. Get in touch today.
