Given the multitude of crises in the past few years across politics, economics and climate, building resilience through effective communication is a crucial skill set for financial advisors. According to Kumud Khare, a one-year MDRT member from Faridabad, India, "Effective communication helps manage stress and builds resilience. One must be assertive, listen, and empathize with their clients. These skills will help advisors thrive in a world that is in a state of flux. It protects clients and other stakeholders in a crisis and helps maintain trust."
Reshma Karve, a two-yearr MDRT member from Gujarat, India concurs. She points out that effective communication was constructive during the COVID-19 pandemic. "Clear and transparent communication helped manage expectations, reduce uncertainty, and foster a sense of community. We offered regular updates via email newsletters and WhatsApp broadcasts that were focused on being emphatic in our messaging and opened channels for feedback, "she says.
For example, she created dedicated WhatsApp groups where clients could directly share their concerns or questions, and we also conducted regular virtual Q&A sessions where clients could provide real-time feedback and receive immediate responses. These channels not only allowed us to stay connected but also helped us address client needs more effectively during a challenging time.
Khare says, "As a relationship manager, I have a roster of clients that I reach out to regularly. It ensures they are able to reach me in case of any issues. I can often suggest fixes and resolve the issues. It has helped me build trust with my clients."
During the initial days of the pandemic, Karve offered daily briefings to the team and clients.
"We shared accurate information, outlined the response plan, and offered reassurances about the road ahead. We assured clients their investments were being closely monitored and we were ready to make adjustments to protect their portfolios if needed. We also emphasized the importance of sticking to long-term financial plans despite short-term market volatility. By reminding them of past market recoveries and our commitment to their financial well-being, we were able to control the crisis and mitigate panic and confusion. This approach not only helped curb potential client attrition but also boosted the team's morale and confidence," says Karve.
Khare and Karve say active listing is the key skill that helps advisors build rapport and trust with stakeholders, as they feel heard and understood. One should also be transparent and use positive language to reassure clients. They believe consistency in messaging across platforms avoids confusion and helps nurture a sense of trust and cooperation. Rather than saying, "The market is uncertain right now," they suggest framing it as, "While the market is experiencing some fluctuations, we are closely monitoring the situation and are here to guide you through it." By consistently delivering such reassuring messages across all communication channels, clients feel more secure and confident, knowing their advisor is both proactive and supportive.
On incorporating past learnings into communication strategies in a crisis, Khare points out, "I saw the pandemic as an opportunity to educate my clients on the importance of life and health insurance for the family and how financial instruments such as systematic investment plans, fixed and recurring deposits can help the family in a crisis. I was able to sell multiple policies and other investment options in this period. It helped me build my client base and helped clients by building awareness about various financial options."
Karve talks about the importance of being agile and prepared. "We have a crisis communication plan in place that details key steps and responsibilities and scenario planning, with regular updates and rehearsed responses to potential future crises. We are also working on continuous improvement programs to refine strategies and ensure better preparedness for the future.”
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