Retaining Clients by Building Trust During Recessionary Times

September 19, 2022

Retaining Clients by Building Trust During Recessionary Times

September 19, 2022

Retaining Clients by Building Trust During Recessionary Times

September 19, 2022 | Marketing Intent

Avoiding tough conversations is a sure way to erode trust. In the late 2000s, the firm I was working at conducted a market research study to understand how well wealth managers were serving their clients during one of the most difficult times in our market’s history – the global financial crisis.

The results were shocking. The prevailing sentiment among investors was that their financial advisor was MIA – no communication.

While it can be uncomfortable to discuss the portfolio impacts of a recessionary market, it’s critical to retaining clients for the long-term. Poor communication leads to mistrust, which can also contribute to clients being less tolerant of poor portfolio performance.

Ways Clients Demonstrate Trust

Let’s talk about how much your clients trust you today. Think about how open your clients are to your advice. Have they consolidated all their investment accounts with you? Have they introduced you to other family members? Have they referred you to anyone? If your answers to these questions are “no,” now is the time to improve your trust quotient.

Trust Improvement Strategy #1 – Educate Clients

Your clients hired you to capitalize on your expertise in positioning them well financially. When the market turns negative, you’ll have insights on what it means for certain industries, investments and financial sectors, but many of your clients won’t – even high net worth investors. Consider steady communications to clients that help educate them on market events. Knowledge is power…and your knowledge is a powerful trust builder.

Trust Improvement Strategy #2 – Communicate Proactively

If you don’t already have a consistent, proactive communication plan for clients, now is the time to establish one. Consider regular emails and social media updates. Choose a simple approach to the information you want to provide so it’s easy to stick with your strategy over time – even when you’re busy. And keep the information succinct. Emailing out a blog post or an informative article are effective strategies to remind clients you’re available and paying attention.

Trust Improvement Strategy #3 – Show Up Visually

We’re all human. And in times of discomfort and anxiety, we crave connection to other people more than usual. This is true with your clients too. Show up for them visually as another way to let them know you’re there, have things under control and are ready to help. Get creative beyond in-person meetings. Use video to record yourself providing updates or education and post on social media or use in emails.

While you can’t predict where the market is headed for your clients, you can increase their knowledge level, trust and comfort so they stick with you for the long term – in all market conditions.

As seen in the WealthManagement 2022 Midyear Outlook.

Learn more about Marketing Intent at www.marketingintent.com.


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