How To Build Strong Client Relationships In Financial Services (2024)

Unleashing the Power of Strong Client Relationships in Financial Services (2024)

Building strong client relationships in financial services can be a game-changer, not only for your business but for your life as well.

Our unwavering commitment to sharing this valuable insight with struggling financial advisors is rooted in its undeniable success.

From the humble beginnings of Eszylfie Taylor's career, all the way up to his status as an ACTIVE Million Dollar Round Table Top of the Table producer, this approach has always proved its worth. And David Hausdorff? He leveraged the same principles we’ll be sharing later, blasting himself straight to the Top 11 at his company in just 90 days. Not bad for a guy who was once lost among the Top 500, right? For Jonathan Burgess, the impact was profound: in less than two months, his productivity increased by an incredible 13 times, a feat that speaks to the transformative power of creating connections with your clients. 

Spoiler Alert: David Hausdorff, Jonathan Burgess, and countless others have achieved tremendous success with The Taylor Method, a unique sales training program designed specifically for insurance and financial services professionals. Through this program, you can learn proven strategies to develop the mindset, process, and language needed to build a thriving million-dollar practice.

Before we go any further, let’s get one thing straight:

We will be the first to admit that the path to success is paved with obstacles. However, by following the advice in this guide with unwavering dedication, you can expect to:

• Consistently fill your pipeline with warm leads with half the effort you're currently exerting.

• Convert passive prospects into enthusiastic advocates for your business.

• Deliver top-notch service that keeps your clients happy and satisfied.

• And never worry about running out of business because let's face it, that's just not going to happen with my sales process.

Eager to get started? Take the following steps:

Establish Trust

Trust: A Financial Advisor's Most Important Asset - Investopedia. And we couldn't agree more. 

Why?

Winning people's favor may make them listen to what you have to say, but earning their trust is what will ultimately lead to successful business partnerships. 

Your mission:

Strive to make your clients feel a sense of resolute security like they are falling backward with complete confidence that you will catch them. Your commitment to their success should never waver - guiding them through every challenge with ease and confidence. Only then will you set yourself apart as a trusted advisor in a sea of many.

Some ground rules to keep in mind:

1. Building trust can take years, and it's important not to be discouraged by this. Trust is something that is earned over time, and consistently demonstrating your expertise and commitment to your clients is crucial.

2. The key is to always continue prospecting, regardless of whether you have an immediate need for new clients. It's impossible to predict when someone might require your services, so it's essential to leave a lasting, positive impression on everyone you encounter. By doing so, you increase the likelihood that they will think of you when the time comes.

3. Relationships cannot be forced, but you can always leave a positive impression on everyone you meet. Even if someone doesn't currently require financial advising, by creating a positive impact, they will remember you when the need arises. Keep in mind that you are establishing long-term relationships.

The good news:

Trust can be cultivated. Here are some crucial steps that advisors can take to build trust with their clients:

• Adopt an education-first approach. Take the time to explain complex concepts and break down financial jargon. Also, communicate the rationale behind your recommendations and how they will help the client achieve their goals. This can help clients feel confident in their decision-making and build trust with their advisors. Finally, tailor the education to the client's needs and level of understanding.

• Be transparent: Be open and honest about your fees, services, and expectations. Clients appreciate transparency, and it helps establish a strong foundation of trust.

• Communicate effectively: Keep your clients informed and updated regularly. Respond promptly to their inquiries and be available when they need you.

• Demonstrate expertise: As a financial advisor, your expertise is proven not by your words but by your actions. Your clients want to see results, and it's up to you to deliver them. By providing unique insights and tailored solutions to their financial needs, you demonstrate that you are not just another advisor in the crowd. Remember, the taste of the pudding is in the eating, and in the world of finance, your clients' satisfaction is the ultimate proof of your expertise.

• Showcase your credentials: As an expert in your field, it's not enough to simply claim expertise - you must also back it up with credentials. Your clients want to know that you have the necessary education, training, and experience to provide them with reliable advice and guidance. So, showcase your credentials to demonstrate your commitment to staying up-to-date on the latest developments and best practices.

• Deliver on promises: You must always follow through on your commitments. Whether it's meeting a deadline, delivering a project, or simply showing up on time, your ability to deliver on your promises is a clear indicator of your reliability.

• Show empathy: Put yourself in your client's shoes and understand their perspective. This helps you build a deeper connection with them and shows that you care about their needs.

• Be consistent: Be consistent in your actions, communication, and delivery of services. This helps establish a sense of reliability and dependability.

One more thing:

Authenticity is another key element of establishing trust as a financial services professional:

• Be genuine about who you are. Don't try to be someone you're not or put on a facade. Clients appreciate authenticity and can sense when someone is fake.

• Admit mistakes: Everyone makes mistakes, and it's important to own up to them. Acknowledge your mistakes and take responsibility for correcting them. This shows that you are accountable and trustworthy.

• Share your story: Share your personal and professional experiences with your clients. This helps them get to know you better and can help build a stronger connection.

Takeaway: Building trust is a delicate art that requires patience, persistence, and a mindset focused on creating connections. While it may be tempting to push for a sale or try to win over clients who already have a financial advisor, forcing relationships rarely leads to positive outcomes. Instead, approach every interaction with the mindset of creating a meaningful connection, regardless of the immediate financial outcome. By showing genuine interest in a person's needs and concerns, you can establish yourself as a reliable and compassionate advisor they can trust.

Understanding Client Needs - The Power of Asking Questions

The most powerful tool you have for uncovering value - addressing  the needs of your prospects and clients, is asking questions. Let us explain:

It's like going to the doctor - you wouldn't expect them to diagnose you without asking a bunch of questions, right? The same goes for financial advice. You need to ask probing and thoughtful questions to gain a deep understanding of a potential client's financial situation, goals, and risk tolerance. Only via this means can you develop tailored strategies that align with their unique needs and help them achieve their financial goals.

Please Note:

2. This process should start even before they become a prospect, as you seek to establish a rapport and build trust with potential clients. Take the time to get to know them, understand their goals and priorities, and show them that you're there to help. This way, when they're ready to take the next step, they'll turn to you as their trusted advisor, and you'll have all the information you need to provide them with tailored and effective financial advice.

3. When fact-finding, it's important to have a structured process in place, to ensure that you cover all the necessary ground and leave no stone unturned. Remember, asking questions is not only about gathering information but also about demonstrating that you care about your clients and are committed to helping them achieve their financial goals.

So, what type of questions should you ask?

You need to approach it like a detective on a fact-finding mission - don't just rely on surface-level information or assumptions. 

Ask open-ended questions and follow up with probing questions:

If you want to encourage your clients to provide more detailed responses, open-ended questions are the way to go. These types of questions typically start with "what," "why," or "how," and allow for a wide range of possible answers. By contrast, closed-ended questions, which can be answered with a simple "yes" or "no," tend to be less informative.

For instance: Instead of asking a closed-ended question like "Do you have any financial goals?", ask an open-ended question like "What are your short-term and long-term financial goals?" This allows your client to share their thoughts and feelings freely and gives you more information to work with. 

And don't stop there - follow up with probing questions like "Why is that goal important to you?" or "What obstacles do you see in achieving that goal?" This helps you uncover even more information and gain a deeper understanding of your client's priorities and concerns.

Additionally…

Keep an eye out for nonverbal cues: 

When you're trying to get a picture of your client's needs and motivations, it's not just about what they say - it's also about what they don't say. These can include things like body language, facial expressions, and tone of voice. For example, if a client seems hesitant or uncomfortable when discussing a particular topic, that might be a cue that there's more going on beneath the surface. Or, if a client seems particularly enthusiastic or engaged when discussing a certain financial goal, that might be a cue that it's a high priority for them. By paying attention to these nonverbal cues, you can gain a deeper understanding of your client's needs and tailor your advice accordingly. 

Personalizing Your Approach - One Size Does Not Fit All

After you've understood what your prospect or client needs, what next? Crafting a solution, right? But not just any solution:

“Financial advisors who proactively establish personalized connections with their clients are more likely to foster stronger relationships and serve as more effective partners” according to Salesforce. 

A personalized approach in the financial advisory context refers to the practice of tailoring investment recommendations and financial planning strategies to meet the unique needs and goals of each client. 

For example, if your client is nearing retirement age and has a significant amount of debt, you may recommend focusing on paying down debt before investing heavily in retirement accounts.

Now, here's the thing: not only does this approach make for an awesome client experience, but it can also lead to better investment outcomes. And let's not forget about the trust factor - building a stronger bond between you and your clients. 

And as clients' needs evolve, the best financial advisors will continue to adapt their approach to ensure they remain an effective and trusted ally.

Maintaining Regular Communication - Staying Top of Mind

The evidence is unequivocal. In today's fast-paced world, effective communication is more important than ever. 

According to recent research published in the Journal of Financial Planning:

• The findings showed that clients were notably more content when they received frequent investment-related educational communications, along with some personalized greeting cards, handwritten notes, and regularly scheduled sit-downs.

• When investment-related educational communications were sent out more often, financial planners saw a boost in their future retention rate and percentage of assets managed.

But wait, there's more!

• Increased instances of educational communications not related to investment were found to be positively associated with a higher volume of referrals.

• Thoughtful cards and notes that demonstrate a genuine interest in clients deepened the relationship and established a stronger emotional connection with clients leading to enhanced client satisfaction and trust.

On the other hand:  

• Excessive use of interest and hobby communications can harm satisfaction, trust, and commitment levels

Finally….

• There's a positive correlation between scheduled meetings and higher levels of satisfaction, trust, and commitment across all domains.

How often?

• Holding approximately four scheduled meetings per year can provide the optimal balance between building strong client relationships and avoiding overburdening clients with excessive demands on their time.

Over to you…

To up your communication game, there are several key recommendations to consider. 

• First and foremost, know your audience. Consider their needs, wants, and preferences, and tailor your message accordingly.

• Be proactive, and don't be afraid to get personal.

• Use visual aids and storytelling techniques to help convey your message. Visuals like graphs and charts can help simplify complex information, while storytelling can help create an emotional connection with your audience.

• Listen actively. Communication is a two-way street, so be sure to actively listen to your audience's feedback and respond to their needs.

• Leverage the power of online communication. If you're comfortable with expressing yourself through words, blogging, and email newsletters may be your go-to choice. On the other hand, if you're more visual, social media could be your best bet. With so many options available, it's all about finding the right fit for you and your clients.

Providing Ongoing Value - Annual Reviews and Beyond

To attain the status of a highly regarded financial advisor, you must move beyond the conventional approach of merely acting as a salesperson. Instead, aspire to be a trusted resource for your clients.

One way to do that is through annual reviews. 

A process that enables financial advisors to keep clients abreast of the progress made, incorporate necessary adjustments to the financial plan, and demonstrate an unwavering commitment to the success of clients.

But that's just the tip of the iceberg.

To stand out, you need to go above and beyond. Share market insights, financial news, and educational resources with your clients. Give them a reason to keep coming back to you. And show them that you're genuinely invested in their success.

Such resources are indispensable in giving clients a compelling reason to maintain a long-term relationship with their financial advisor while showcasing the advisor's authentic investment in the clients' progress and growth.

Conclusion

It is imperative to keep in mind that to establish yourself as the go-to financial advisor for your clients, you need to commit to the long haul. Building solid client relationships takes time, effort, and dedication to their success. And if you're ready to take things to the next level, it might be worth considering a sales training program that's tailored for financial advisors.

A program of this nature can furnish you with the requisite knowledge and skills to excel in this fiercely competitive industry and cultivate the enduring relationships that are fundamental to your success.

After all, as they say, "It's not what you know, it's who you know." And building those relationships is key to making it in the finance world. We can help - get in touch here.