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Why do agents and advisors lose clients? Relationships take many forms. If a prospect bought just one product, the ties aren't very strong. It's like meeting a person at a conference once. They might know your name, but there's not much of a connection. Years ago, the standard was 3+ products solidified relationships. The industry term was "sticky" because leaving or changing providers took more of an effort.
Let's assume your relationship is longer term, measuring in years. Suddenly someone moves. No warning. This isn't open for discussion. Why?
1. They feel taken for granted. You've heard the expression "I'm just another number." They feel they don't get attention. They can reach you only if they initiate the call. Maybe their call is intercepted by an assistant or team member. You are out of reach.
What to do: If they are a client in your book, they deserve frequent or at least periodic contact. Your CRM system can simplify the process.
2. They've been prospected. Your best client is someone (several someones') best prospect. They tell them changing firms is a step up. They talk about the attention they will get.
What to do: Clients need to feel loved and appreciated. They need a good answer to: "When was the last time you heard from your advisor?"
3. I got a better price. Either someone undercuts your pricing or they decide investing is so easy, anyone can do it. They opt for online trading with those free commissions.
What to do: Clients need to know what they are paying for and the range of their holdings where you are providing advice.
4. A relative's in the business. Their nephew got their license. They need clients. They've been approached. They want to be a team player. They move their account.
What to do: This is a tough one. Maybe the relative can get a smaller piece. Explain why it's important to keep everything together.
5. Negative news stories. Your firm is in the news for the wrong reasons. Headlines talk about wrongdoing at the top. Big fines.
What to do: Let them know the firm is a big place – a problem in one part doesn't mean there's a problem in your part. To many clients, "the firm" is the agent or advisor they work with regularly.
6. They don't realize the scope of your firm's services. Another firm offers banking, insurance and investments. One team. All under one roof. You might have the same capability. They never knew.
What to do: They won't know unless you tell them you offer these services too.
7. Consolidation. They do business with a few firms. They need to keep track of these accounts. It's confusing at tax time. Someone has suggested bringing it all together. Unfortunately, "together" is elsewhere.
What to do: Why haven't you suggested consolidation? Maybe it's not too late.
8. Charitably inclined. Your wealthy client serves on charity boards. They volunteer. They meet hardworking fellow volunteers. They bond. They admire the other person's "giving back" to noble causes. They happen to be in financial services! They move their account.
What to do: This is another tough one. You need to give back to the community. Let clients know what you do. Even the playing field.
9. Retirement. Your client thinks you are approaching retirement age. Maybe you don't come in as much as before. They assume you are a short-timer. They want a stable relationship that will continue for years. They decide that's not you. They move.
What to do: Clients need to know your succession plan. Are you bringing your son or daughter into the business? Have you joined a team?
10. Those new products. The insurance and financial services industry are constantly rolling out new products. More bells and whistles. They read or hear about them. They want that. They call the firm in the ad or the article. They are gone.
What to do: You probably have those products too. You need to make clients aware when they are suitable. They should also be advised on what isn't suitable.
11. I'm stuck, not making any progress. Their statements look the same. They don't think their money grows. It just sits there. It might be safe, but it's boring. They want to make some money. Do something different. They move.
What to do: Clients often forget about money that they have withdrawn. They also need periodic reviews. Talk about progress toward goals.
12. They are upset. The stock market declined. Obviously, it's your fault. You should have seen this coming. Rates changed. They were meaning to send you more money, now it's too late. A check was lost. It took time for the firm to replace it.
What to do: When conversations cool or they start establishing distance, you need to make the first move. Ask what's on their mind.
13. Enter the meddler. Actually, it's more polite to call them an intermediary. Your client is getting older. Family members are concerned their uncle might agree to anything. They are inserted into the decision-making process. In the future, when you make suggestions, they must be approved by the nephew. He doesn't like anything. He has a friend in the business. The account moves.
What to do: Meet all the players. Establish your competency. Ideally, your client explains to them that you are to be trusted.
14. They get invited to free events. Your client is retired. A competitor invites them to seminars and open houses with free food. They see this as benefit of moving to that firm.
What to do: Invite your client to events. Take them to lunch. Maybe you can meet their friends.
People leave for all sorts of reasons, but often there is a common theme – it's lack of communication. Most of these problems can be addressed if you regularly engage with each client.
Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book, "Captivating the Wealthy Investor" can be found on Amazon.
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Bryce Sanders
Bryce Sanders, president of Perceptive Business Solutions Inc., has provided training for the financial services industry on high-net-worth client acquisition since 2001. He trains financial professionals on how to identify prospects within the wealthiest 2%-5% of their market, where to meet and socialize with them, how to talk with wealthy people and develop personal relationships, and how to transform wealthy friends into clients. Bryce spent 14 years with a major financial services firm as a successful financial advisor, two years as a district sales manager and four years as a home office manager. He developed personal relationships within the HNW community through his past involvement as a Trustee of the James A. Michener Art Museum, Board of Associates for the Bucks County Chapter of the Fox Chase Cancer Center, Board of Trustees for Stevens Institute of Technology and as a church lector. Bryce has been published in American City Business Journals, Barrons, InsuranceNewsNet, BenefitsPro, The Register, MDRT Round the Table, MDRT Blog, accountingweb.com, Advisorpedia and Horsesmouth.com. In Canada, his articles have appeared in Wealth Professional. He is the author of the book “Captivating the Wealthy Investor.”
