Clients and call reluctance

There is a new trend developing in this topsy-turvy financial marketplace. Many of your clients are suffering from call reluctance. Despite deep-rooted concern for the welfare of their nest eggs, it seems they’re afraid to call their financial advisors.

Last week while I was conducting a coaching meeting with a veteran advisor, he exclaimed, “I feel pretty good,” adding that he had not received many calls from concerned clients.

The lack of calls from concerned clients might be a sign that this advisor’s hard work to establish trust has paid dividends; however, I believe it’s more likely that much goodwill has wilted along with the falling markets. Don’t kid yourself into thinking your clients aren’t worried. They are worried, but they are equally concerned that they will be a nuisance by calling you.

In early October, I conducted a client advisory session with a group of 12 families. After a couple of minutes, I realized that our predetermined agenda should be replaced by a discussion about the current market climate and how they were feeling. I asked how many were concerned about their portfolios. The response was resounding — all 12 families said yes, they were definitely concerned. When I asked how many had called or met with their advisors to discuss these concerns, surprisingly only two said they had made the call.

Here is a sample of the reasons offered for not having called:

“I know he is busy. I think he has other clients to worry about.”

“I hate to complain. I don’t want him to think I have lost confidence in him. I know he will call if he thinks he should.”

“I am in denial mode. I am basically ignoring reality. I have stopped opening my statements. I have chosen not to call because I prefer not to look at what impact it has had on my savings.”

“I know he has more important clients than me. I don’t want him to think of me as a pain.”

“Every time I come home, I check our voice mail to see if he has called. I want to call but really expect him to call.”

I know this is a small sample of client feedback, but it seems there may be a trend brewing. Despite the stress clients are enduring with these falling markets, their inability to call their advisor has become an equal stressor. Could there be a tug of war taking place with both sides equally worried about calling the other?

How do you overcome this stressor and communicate with clients effectively?

With the benefit of hindsight, I think advisors should have a communication protocol. What does this mean? I think advisors should lay out a communication plan for all clients. This plan states how frequently the client can expect to receive statement mailings, portfolio reviews, newsletters and event invitations. It should also include a “return call policy.” In extraordinary times like these, there is a need for more responsive, timely communication.

Some leading-edge financial advisors have introduced video blogging to address this need.

A video blog is a three- to four-minute video in which you share your thoughts with clients in an audiovisual format. The technology required is a $500 camcorder and a blog site. The clear benefits are speed, efficiency, authenticity and cost to name a few. How can you possibly speak with all of your clients while maintaining a full schedule of appointments? You can’t, but you can craft a video message and send the link to all of your clients in the time it would normally take to prepare for and meet with just one client.

Blogging in itself is an opportunity to share your thoughts. Video blogging, however, is far more effective because your clients can hear and see you. By communicating in this mode, you have a greater ability to connect and bring comfort.

Tips

You don’t need to produce television-quality video. In fact, the research suggests that the most effective video blogs aren’t slick. This communication, of course, should be run through your compliance department. Ideally, you should also add a link to the video blog from your website to maintain continuity. The best advice I found about video blogging comes from Robert Scoble. The author is a technology blogger, but his tips are universal. This seven-minute video blog identifies his top five tips for video blogging. Click here to watch it. (Editor’s note: This YouTube link will open in a new window.)

Caution!

I suspect that our industry will embrace blogging like it has embraced e-mail. But I have one huge caution. It is an effective augmentation strategy, particularly in times like these when there are so many worried clients. It enables them to hear your voice and sense your conviction without having to pick up their phone, but sending an e-mail or video blog link doesn’t replace the need for one-on-one meetings or calls.

Shawn O’Brien is president of Shift Consulting. For more information, contact Shawn@SlowDownGoFaster.com.

(10/21/08)