Six Signs Your Client is Going to a New Advisor

2. They do not understand your importance

When the market is good, your clients may think that they can manage their finances well and even do better by themselves, and thus, they decide to remove the middleman or the financial advisor. You can prevent this by communicating with your clients about your work, even if you don’t feel the need to make any changes to your client’s financial profile.

3. Your business is linked to something scandalous

Suppose your company’s name gets associated with something scandalous or gets into legal trouble and gets reported in the media. In that case, your clients will decide to leave as they’d not want to associate themselves with the company anymore. To prevent this, you may try to distance yourself or your department from the people or departments involved in the scandal.

4. Your client is worried about keeping the privacy of their money

This scenario can happen in small towns. If a wealthy person constantly exits your storefront office, they might assume that everyone knows their business. They might want to relocate their account to a nearby city to maintain anonymity. To prevent this, you’ll have to reassure your client that you keep the information confidential.

5. The decisionmaker’s spouse doesn’t like you

If you only pay attention to the primary decision-maker, their other half may feel belittled, and you might lose their business. You should treat them both equally and try to consult with them even if one of them expresses their disinterest in financial matters.

6. You're unreachable

Suppose you’re a team leader, you have people working under you, and it is you who approach a potential client for their business. Once they become your client, you assign a team member to their case. In this scenario, some of your clients may feel that they’ve been duped and become another victim of the classic “bait and switch.” If this happens, you should explain to your clients that having dedicated team members make things run fast. You should also reassure them that they can reach out to you anytime about any query that they might have.

Conclusion

Several causes make clients fire their financial advisors; broadly, you can classify them under three main reasons:

Performance – If clients are not happy with the arrangement they’re getting, and they think that the service is not worth the money they’re paying, there’s a high chance that you will get fired by your client.

Lack of communication – If you don’t keep in touch with your clients, especially when the markets are down, your clients may feel neglected and fire you. When the markets are down, there is a chance that your clients may get into debt. If you stay on top of their finances and manage to offer them effective debt solutions, chances are they’ll be pleased with your efforts, and you’ll be able to build strong relationships with your clients.

Fees – High fees won’t bother your clients if they receive high returns. When they don’t get their desired returns, they look for ways to save money. They can fire you if you’re unable to fulfill your promises.

If you keep your clients informed about their finances and let them know that you have a plan, that’ll reassure them, and you’ll be able to build a strong relationship with them.

Lyle Solomon has extensive legal experience as well as in-depth knowledge and experience in consumer finance and writing. He has been a member of the California State Bar since 2003. He graduated from the University of the Pacific’s McGeorge School of Law in Sacramento, California, in 1998, and currently works for the Oak View Law Group in California as a principal attorney.

Read more articles by Lyle Solomon