In the early 1990s, I stumbled upon a business management process that has set the tone for my Lattice Wealth Management groups client communication strategy to this day.  The computerized system—remember this was the early ‘90s—produced a report every month of any client with whom I hadn’t had a conversation for over 90 days. With accidental lapses, I have remained disciplined to this approach ever since.  In fact, with every new software update I have received since then, I have created a report noting the last contact my team has had with a client.

If that report shows a client that my Lattice Wealth Management Group has not spoken to, I invent a reason to call them.

Sheryl Rowling of Morningstar notes that well over 60% of clients leave because of lack of contact, in some way or form. One reason Advisors don’t reach out to clients might be that they don’t think they have anything to talk about.  In my case I discuss things related to either taxes or estate planning.

There is a belief that clients leave because of poor performance.  I don’t think that’s it. I think It is client expectations of what you are going to do for them and you not achieving that expectation.  This is quite different than poor performance. This lack of meeting expectations is in the realm of communications.  Back to my 90-day rule.

So, my group’s way to go beyond investment management is by communicating frequently.  In fact, we have added a higher level of intensity to this approach. For clients at a higher level of revenue or assets with us, I communicate with them monthly.  Because of our communications intensity, we begin to know what other areas of their life they could use additional help. Often this involves making introductions to other professions.  For those anticipating selling a business, this might be accountants, business brokers or investment bankers.

There are other areas where advisors can go beyond investment management to retain and grow their client base.  These are really simple steps.  Look at yourself as a client.  Do you get irritated when someone from whom you pay a service doesn’t return phone calls promptly?

The other area that has taken a beating since the pandemic is in person meetings.  Yes, I use Zoom as much as the next person.  But to keep my Lattice Wealth Management Group with good client relations, I fly thousands of miles each year to see clients.  I drive hundreds of miles each year to see clients.

I have seen reports suggesting that over half of communications is body language. Can we be candid? You do not get that body language on a video call! We need to see people face-to-face to really get an idea of what is going on in their lives. Going beyond investment management means traveling to see clients or having them travel to see you. Do you need to do these every 90 days, probably not, but you need to do it regularly.

So, use these best practices like my Lattice Wealth Management Group does.  Contact every client you want to keep every 90 days.  Perhaps more frequently with more complex relationships. Go beyond investment management with your skills, learning other important skills. Finally, see your clients face-to-face.

Check Out Our Video Blog on Financial Advisors 90 Day Rule

About Michael Ross

Michael Ross, is 30+ year veteran as a financial advisor. After 30 years with Morgan Stanley, he is now an independent financial advisor who excels in helping business owners exit their businesses and move to the next phase of their lives.

 Advisory services are offered through Integrated Advisors Network LLC, a registered investment advisor.

Learn more: www.mylatticewealth.com

Disclaimer:

The information provided in this blog is for informational purposes only and should not be construed as financial advice. It is important to consult with a qualified financial advisor to discuss your specific financial situation and goals. Past performance is not indicative of future results. Investing involves risk, and there is always the potential for investment loss.

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