As financial advisors we have a lot of expectations from our clients. Some of these expectations are those expected as a professional and also those basic expectations as a person. Meeting this expectations is a crucial ingredient for success as an advisor. The advisor has to align his entire business practice to match the client expectations. While there may be countless expectations from clients, there are those which hold the basic fabric of the the relationship. In this piece, we will talk about some of these expectations ...
The basic expectations
- Respecting time: No longer can we continue with a 'chalta hai' attitude to our clients. This is one big thing which differentiates us As the markets become more competitive and professional and times more hectic & busy, respecting time of the clients is now a basic expectation. Advisors should make it a habit of arriving, meeting, calling, etc. on time with clients.
- Keeping records: Imagine already taking a decision with client and then forgetting it! It is something to be seen as a professional sin! Better we keep a proper record of all our meetings, tasks and all the conversations we have with the clients.
- Response time: In the age of instant foods and T20, the response time expectation has been severely curtailed. There is no excuse frankly for not responding on time. If there is some problem, you are expected to handle that but respond in time. You can take a cue from our Railway Minister who responded to a tweet from a lonely lady passenger at night. Let us set our own personal standards.
- Clear communications: Communications have to be precise, understandable, clear and concise. In today's digital age, the medium of communication also become crucial given the various mediums available. The advisor has to be follow the medium of his client to reach him else all other important ingredients of communication will be of no use.
- Regular updates: Needless to say, clients expect to be kept informed and updated, even if they are not very vocal about it. Basic expectation is of regular update on investments and financial plans, if any.
- Keeping in touch: Clients like to be remembered. The gesture of greeting on festivals, events, etc. is too basic to be stated. Some form of regular communication like news, articles, new products, etc. may be communicated as per client interests.
- Respectable & presentable: Being a complete man – with good etiquettes, dressing and language is always welcome. Successful professionals try to maintain a respectable, pleasant and attractive image and personality. It definitely you greatly in getting more business, references and obviously new clients.
The professional expectations:
- Understanding client: Understanding the client goes beyond his stated needs. It covers a whole gamut of client profile – right from risk appetite, financial situation, family background, family goals, etc. to provide truly customised and comprehensive range of services – as per your engagement. Understanding client is an ongoing process and it is not something to be asked or a matter of data collection.
- Fulfilling advisory role expectations: An important element of client engagement is knowing your role and the expectations. As financial advisors, there may be a lot of things which you can do, but perhaps which the client does not want. It is better to stick to your role and not push the boundaries of relationship unless the client wants it. Fulfilling your role to the full satisfaction to the clients is first step towards growing relationships.
- Keeping client interests supreme: Needless to say, no advisor can become big and famed unless he keeps client's interests supreme and at the heart of the relationships. Compromising this may fetch short-run benefits but they are also short-lived. There is every chance that another advisor comes along the way and highlights your misadventures to the clients. The best way to do this is to listen to your conscience after asking the question – am I truly helping the client without bias?
- Disclosing material facts: Trust develops when we do not hide things. However, it is also not necessary that we disclose everything which the clients does not need to know or is unable to understand. The true test of being material is when an information is relevant for making a decision or an element of the engagement or something which the client needs to know in his best interests. The choice of disclosure is of the advisor but so is the onus and the moral responsibility.
- Keeping updated & skilled: A financial advisor is expected to be knowledgeable, certified, licensed, informed and skilled in his area of expertise. High standards of knowledge & expertise should be maintained on an ongoing basis if we desire to grow in the business and stay relevant in coming times. This broadly covers the areas of regulations, markets, products & solutions and technology.
- Giving justice to relationship: There is only so much an advisor can do. Being human and being in the profession where your time is a precious commodity, there has to be a fine balance struck with the available time and the number of clients. There are ways to play this balance – through automation, infrastructure, people or team and by differentiated service offerings. The idea is to do 'reasonable and fair' justice to the client as per his expectations. There is no point in adding clients if you cannot do justice to the relationship. Over time, it only adds to the stress, low service quality and ultimately a dissatisfied client.
The Bottom Line
The reality today is that clients are increasingly aware and choosing their advisors carefully. In a world where many things are increasingly becoming automated and robotic, the importance of personal approach to a comprehensive advisory can never become out of fashion. Having a human face, today's financial advisors have challenges which can be met by putting proper practice related principles, policies and processes in place. The above behavioural and practice tips for meeting expectations, is but only a small part of the things that we need to do. Let us take the right step in this direction by first having strong expectations from our own selves....
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