The Number One Reason Why You're Losing Clients

March 22nd, 2023 | Nicole Toppin

There’s no question – the world has changed a lot in the last three years. Financial service is already an industry in a state of constant disruption, which was only exacerbated by the pandemic. Since the beginning of the pandemic, many people have reconsidered how their money is managed. A whopping 25% of the 670+ clients that participated in a YCharts survey considered switching advisors. What’s more - 21.8% of those clients actually made the switch!1.

Can you guess the #1 reason clients decided to make the switch? Communication. (Total shocker, right?)

Since 2020, clients now desire more frequent touchpoints with their financial advisor. The more assets a client has with an advisor, the more outreach the client expects from them – and rightfully so! Some advisors may think, “I don’t want to constantly bother my clients.” According to YCharts, however, almost half (47.1%) of the survey respondents said they wish their financial advisor would communicate with them more2.

Since the pandemic, there has been a substantial increase in virtual meetings and decrease in in-person meetings. Virtual platforms have become an accepted forum for client meetings in addition to the classic in-person style. While virtual meetings have become a good alternative during the pandemic, it’s possible the reduction of face-to-face contact has impacted the overall frequency of client communication1.

We’ve crossed the Rubicon on virtual meetings – truly, there is no going back. That’s one of the reasons communication has steadily become one of the most important factors for clients when selecting a financial advisor. Communication helps to build and establish trust with your clients, which in turn results in increased customer longevity.

Additionally, clients consider their financial advisor’s communication habitswhen making recommendations to family or friends. The good news is that this word-of-mouth marketing method is also the most cost-effective. Statistically speaking, people are five times more influenced by family and friends than other kinds of influencers. Hubspot did a study and found that 90% of people trust suggestions from their family and friends.3 Ideally, you want to build strong relationships with your clients to leave the door open for potential referrals.

Long story short, clients need communication – and want it on their own terms. The more AUM a client has with an advisor, the more communication they expect from them. Myriad’s best rule of thumb is that you can never communicate with clients too much as a financial advisor. In fact, it’s better to over-communicate rather than to lose clients.

If you’re not sure how to increase your client communication, Myriad Marketing has your back! From social media outreach, to HTML e-mails, to physical letters, we can help keep you closer to your clients than ever before. Call 515.850.1212 or click here to start learning about ways you can increase your client communication!

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