Source/Contribution by : NJ Publications
While every business revolves around the customers and the clients, as an advisor your client is the business himself. You earn when your client invests in a product via you or based on your advice, thus if there is no client, no trust, there is nothing left for you.
As advisors we always advise our clients to make long term investments, so we should follow or own advise as well. We should invest our time in our clients to build a long term relationship with them. When an individual makes a long term investment based on your recommendation, it becomes your moral duty to make sure that over time this investment is working for the client. You can fulfill this duty only when you have been able to retain the client. Client retention is important not just in the sense of duty, but also for monetary purposes. Client retention is especially important since your income is directly linked to the how long the client stays invested, and that will happen when you advise him in a diligent manner and serve his investment needs.
3 reasons why you should focus on client retention
1. Increased business - deeper relationship
The number one reason why client retention benefits you is because these clients will give you continuous business. An individual never invests just ones. Investing is a continuous process and once you have a client, that client will continuously keep on investing on your advice. Thus, an individual who has once invested via you will give you business and income not just once but over the lifetime. The only condition here is, you should work on retaining the client. As the life cycle of the client changes, there will be tremendous opportunities for cross-selling and up-selling. The value of the relationship will also deepen. In short, increasing share in a deepening pocket is what we can expect.
2. Saving of Time, Efforts - right focus
Client retention is definitely less effort than client acquisition. With a very strong retention, you will have less pressure on client acquisition. Taking pressure away from client acquisition has multiple advantages – saving of great time and also saving of money spent on marketing /acquisition. This time will now be channelize to more productive and optimum use when you work more on existing clientele.
An individual who has already invested via you, knows your style of work and knows the importance of your advice. Thus, this individual will be willing to continue or invest more on the basis of your advice in the future as well as he trusts you, provided you are in touch with this client and have been of good service to them. When you look at acquiring a new client, you have to educate a new individual and have to familiarize him with your process, which takes simply takes more energy and more time.
3. Old clients will bring you new clients
As a consumer, when you like a product or service, you will definitely tell about it to your friends and family. Similarly, when your client likes your service, he or she will also tell about it to their friends and family. Servicing old clients well is basically investing on word-of-mouth publicity, which not only saves you on cost but also on time.
Also, word-of-mouth publicity is especially important for you as an advisor, because again, trusting someone with your money is not easy. Any individual will prefer someone who is reliable and trustworthy. When your service is recommended by someone, you automatically become more reliable than someone new.
What is expected from you:
It is customer happiness or satisfaction that separates a good business from a great business. In the wealth management space, winning client trust and retaining your customers for long-term, is what makes the real difference. Your clients expect the best when they agree to let you, an outsider manage their hard-earned money. Its is not just financial performance which should be satisfactory; you also need to be accessible, information provided should be quick. But above everything, your personal relationship with your client should be genuine, based on mutual respect and real.
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