Our research continues to support the fact that clients are seeking a personalized financial planning experience.¹ To fully achieve this, financial planners must encompass personalization into their communications strategies. In a world where impersonal, one-size-fits-all communication is abundant, tailoring your approach to each client’s unique preferences and needs can set you apart from the competition.

Effective personalized communications foster better client experiences, strengthen the bond between you and your clients, and ultimately play a pivotal role in improving client retention. Tailored interactions create a sense of belonging and appreciation, reducing the likelihood of clients seeking services elsewhere. Personalized communications can be a powerful differentiator in an industry where client retention is critical for long-term success.

Three Ways to Improve Your Communications

To achieve effective personalized communications, there are three key aspects to consider: understanding client preferences, simplifying financial concepts, and leveraging tools for consistency.

Understanding Client Preferences

One of the most critical steps in delivering personalized client communications is to have open and honest conversations about preferences right from the start. When onboarding new clients, it’s essential to inquire about their desired channels for communication, such as email, phone calls, text messages, or a secure online portal. Additionally, ask about their preferred cadence for meetings or check-ins, whether that’s quarterly, semi-annually, or annually.

To ensure you’re providing an appropriate level of communication, consider segmenting clients based on their service levels or investment portfolio size. Higher-net-worth individuals or those with more complex financial situations may require more frequent touchpoints, while others may prefer a more hands-off approach.

If clients are unsure about the ideal communication frequency, provide recommendations based on industry best practices and your firm’s experience. A general guideline could be to suggest quarterly check-ins at a minimum, with additional touchpoints as needed for significant life events or market volatility.

For established clients, regularly solicit feedback on their communication satisfaction levels. Ask if they would like more, less, or different types of communications from your team. Pay close attention to significant milestones or achievements in their lives, such as retirement, selling a business, or reaching a financial goal, and be sure to commemorate these occasions with personalized outreach.

By taking the time to understand each client’s unique preferences and tailoring your communications accordingly, you’ll foster stronger relationships, increase satisfaction, and ultimately improve client retention.

Simplifying Financial Concepts

One of the most critical aspects of effective client communication is ensuring they understand their plan and the financial concepts it incorporates. It’s essential never to assume that clients have a deep understanding of technical jargon or intricate financial topics. Even if they have some experience, it’s best to err on the side of caution and break down explanations into easily digestible pieces.

To achieve this, financial professionals should strive to simplify their explanations as much as possible, without overwhelming clients with excessive technical details. A helpful exercise is to practice explaining financial concepts to non-financial friends or family members and seek their feedback. This can provide valuable insights into areas where further clarification or simplification may be needed.

Encouraging clients to speak up when they don’t understand something is also crucial. Building an open, collaborative relationship fosters an environment where clients feel comfortable asking questions and seeking clarification. Planners should actively encourage this behavior and make it clear that no question is too simple or too complex.

By simplifying financial concepts, encouraging open communication, and using plain language, financial professionals can ensure that clients truly understand the advice and recommendations provided. This not only enhances the client experience but also helps to build trust and strengthen the advisor-client relationship.

Leveraging Tools for Consistency

Client portals provide a seamless digital communication channel, allowing you to share documents, data, and updates efficiently. Leveraging a secure portal keeps everything in one centralized location that clients can access anytime, anywhere. This transparency builds trust and keeps everyone on the same page.

A customer relationship management (CRM) system is pivotal for tracking important client dates, milestones, and communication preferences. With detailed client profiles, planners can ensure no birthdays, anniversaries, or other key events slip through the cracks. The CRM also helps segment clients for more personalized, targeted outreach.

Marketing automation tools provide the ability to share pre-approved educational content with clients on a consistent schedule. Rather than manually sending one-off emails, use this tool to set up workflows to nurture clients by sharing valuable insights. This thought leadership content positions the firm as a trusted authority.

Developing a communications calendar is critical for planning client touches in advance across multiple channels. The calendar can map out quarterly performance reviews, monthly email newsletters, annual policy updates, and any other recurring communications. Batching content creation for these channels enforces consistency while boosting efficiency.

With all of these touchpoints mapped out, planners can then automate reminders for key client outreach moments. Setting up automated tasks and notifications prevents anything from slipping through the cracks. Clients will appreciate this proactive, attentive service.

Personalization Delivers Peace of Mind

In the ever-evolving world of finance, building strong client relationships hinges on more than just investment performance—it requires a personalized approach that resonates with each client’s unique circumstances and preferences. By paying close attention to client life events, milestones, and market conditions, financial professionals can tailor their communications to foster deeper connections and provide reassurance during times of uncertainty.

During periods of uncertainty, clients may experience heightened anxiety, making effective communication paramount. In such times, work to strike a balance between providing transparency and instilling confidence. Financial planners can incorporate aspects of financial psychology (finpsych) into their communication strategies to further personalize their approach to providing clients with peace of mind.

• Use empathy and active listening to understand clients’ emotions and concerns during times of uncertainty due to life events or market volatility.
• Educate clients about common behavioral biases, such as loss aversion, recency bias, and herd mentality, to explain how these biases can influence decision-making during uncertain times.
• Implement behavioral nudges, such as setting up automatic contributions or rebalancing, to help clients stay disciplined and avoid impulsive decisions during times of uncertainty.

By integrating finpsych into their communication strategies, financial planners can reach a level of personalization that builds trust and rapport, ultimately leading to better client retention.

The Lasting Impact of Effective Communication Strategies

Implementing personalized, simplified, and consistent client communication strategies pays dividends. It builds trust, which is the foundation of successful, long-term advisory relationships. Clients feel understood, informed, and appreciated rather than overwhelmed or neglected.

Over time, this level of attentiveness leads to higher satisfaction and retention rates. Clients view you as a true partner invested in their financial well-being. They’re more likely to accept advice, leverage additional services, and provide referrals from their positive experience.

While it requires ongoing effort, developing robust communication practices is a worthwhile investment. It differentiates your firm and delivers an exceptional client experience that drives sustainable growth.

Source:

1 eMoney Evolution of Advice Research, July 2022, Advisors n=300

DISCLAIMER: The eMoney Advisor Blog is meant as an educational and informative resource for financial professionals and individuals alike. It is not meant to be, and should not be taken as financial, legal, tax or other professional advice. Those seeking professional advice may do so by consulting with a professional advisor. eMoney Advisor will not be liable for any actions you may take based on the content of this blog.

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