Managing Your Clients Through Turbulent Times

by Hugh Massie 2/26/2009 4:50:00 AM
February 18, 2009 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 client’s 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 let’s 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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7/30/2010 8:34:00 AM

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Hugh Massie’s blog uses cutting edge research and behavioral insights to give you powerful solutions for client centered financial planning, building enhanced client relationships and practical ideas for managing the human side of your business and improving ROI.

Author

Name of authorHugh Massie

Hugh is the President and Founder of Financial DNA Resources, a leading international Financial Behavior Consulting firm. He has 22 years of unique and diverse financial and business advisory experience. Hugh has worked with financial advisors, professionals, and coaches from all over the world to provide client centric solutions. His educational programs and services are internationally recognized and centered on client discovery, business and personal development, practice management and improving human performance to increase ROI.



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