In our profession, where it is upon the financial advisors to suggest the best way to secure a client’s future, building a relationship of mutual trust and faith is extremely crucial. This mutual bond ensures that the client trusts your recommendations as a financial advisor, guarantees long-term revenue and secures the overall health and longevity of the business.  

But how do you build this relationship of trust? The answer is simple – through effective communication.  

An effective communication channel means the establishment of a system where clients have the comfort and opportunity to speak to you whenever there is a professional doubt while you as a financial advisor are also constantly engaging with them proactively at your end. This cross-communication results in the foundation of a mutual relationship between the client and the financial advisors. 

Applying a seamless communication system is crucial for the success of your advisory services. Hence, these are some compelling techniques that you can use to build that coveted relationship of trust and information exchange: 

1. Create a system 

The first step in facilitating effective communication is to set clear expectations between the parties.  

Nidhi Bhargava, a six-year MDRT member from Mumbai, says, “I always try to connect with my clients’ inner self. This helps me understand them better and creates a sense of comfort for them to be ready to follow my advice.”   

You must ensure that your client onboarding process contains clear instructions about how often you, as a financial advisor, are going to communicate with them and what is going to be the preferred medium of communication. The day, date, time, month and medium of communication should be clearly stated to the client.  

2. Meet your clients halfway 

Not all your clients are going to be tech-savvy or digitally literate. You may have some Gen Z clients who love their information in the form of social media posts, whereas there may be some who need periodic telephonic interactions or meetings with their relationship managers. Different clients have different requirements when it comes to relationship management and as a financial advisor, it is your duty to meet them halfway.  

3. Customization is key 

You cannot sell the same product to every client. Likewise, you also cannot communicate with every client in the same way or use the same strategies. 

“Look at the bigger picture rather than just selling your product to the client. Taking care of their exact needs and solving them through customized methods is important,” said Yash Arondekar, a two-year MDRT member from India.  

There is no ‘one size fits all’ here. When speaking to clients, it will work wonders if you personalize your interactions with every client depending on their background, goals, experiences and priorities.  

A quick tip: Some clients in India also tend to be more comfortable and warmer towards financial advisors who speak to them in their mother tongue.  

4. Be sensitive 

The crux of effective communication is to speak and exchange information in a way that is consumable and comprehensible. Here, sensitivity goes a long way. As a financial advisor, since your service concerns money transactions, you must be polite and sensitive in your approach to your client’s problems. Before speaking or putting your opinion forward, you should ensure that you are mindful of any personal issues of the client and do not communicate anything that can be offensive or disturbing.  

5. Feedback 

Even after you have implemented the best of strategies, there is always room for improvement. Request timely feedback from your clients regarding your mode and methods of communication and see how it’s working with them. Listen to their response and if necessary, take suitable actions to remedy any grievances.  

6. Communication is the ultimate superpower! 

It is often said that “The first impression is the last impression”. In the case of current or potential clients, it is absolutely true. Your very first interaction with a prospective lead is going to decide the course of your relationship with them – and utilizing these communication techniques is one way of ensuring it goes in a positive way only.  

Good communication practices and techniques can not only help you rank high on client satisfaction and happiness but also have a direct impact on your reputation in the industry as a stellar financial advisor. 

Contact: MDRTeditorial@teamlewis.com