Top Tips for Financial Advisor Client Communications

Learning how to talk to clients and find the communication tools that work for you is crucial to your financial advisor’s success and, ultimately, the relationships you build with your customers and their families. Financial advisor client communications are vital to developing trust and camaraderie with the people you serve.

In a 2019 survey, 85% of respondents said that communication tools and style would be considered when deciding whether to retain an investment advisor. 

Greg Hammer is a Yale graduate with a degree in applied mathematics who has spent the last decade with C2P Enterprises, learning how to simplify the financial planning process and talk to clients more effectively.

In a recent episode of the Bucket Plan On-Demand Podcast, he and Dave Alison discussed proven metaphors and relatable examples you can start using right away to help your customers better understand the role of an investment advisor and the benefits of working with one. 

Greg’s holistic financial practice services 800 clients per year. Greg attributes much of his growth to the financial advisor education he has received and the communication tools and methods he has refined throughout his career.

I tell my clients to think of me as the mechanic. I need to lift the hood and show you what’s going on. That’s my job as a fiduciary. But after our relationship grows—if you never want to look under the hood again, I’m good with that. When you want me to shut up, tell me to shut the hood!” 

-Greg Hammer 

Investment Advisors Need to Simplify Complex Ideas 

The first meeting can be overwhelming for a new client. 

Greg recommends explaining upfront that you’re going to be throwing a large amount of information at them in a brief period. 

Encourage them to ask questions but let them know that it’s okay if they don’t understand everything.  

That’s why they hired you. 

When you take your car to the shop, do you understand everything the mechanic says or does or put your trust in the expert to handle it? 

Financial planning is no different. 

You could spend all day explaining every detail of the portfolio, running through possible scenarios and market forecasts. But most clients don’t want that—they want to come in annually for a tune-up. Unless the check engine light comes on, they don’t want to worry about it. 

A good investment advisor prevents breakdowns when they can. And when they can’t—they pop the hood back open and fix the problem at its source. 

The mechanic analogy is easy to understand. 

When you inevitably hit them with a bunch of jargon and acronyms, your client will feel less bombarded if they know upfront that they don’t need to comprehend every little thing you say. 

They don’t have to understand how the engine works because they hired an expert. You’ll see immediate relief on their faces when you reiterate this. 

However, the client is still responsible for the upkeep of their portfolio. There will always be gaps in the plan and changes to the market. You can’t take a set it and forget it approach to retirement. 

A brand-new car still requires maintenance, after all. You have to change the oil, rotate the tires, and check for any damage or vulnerabilities. 

There is a reason that financial advisor education is a continuous process—things tend to change quickly.  

Life happens. When you get a flat tire, you assess, adjust, and continue your journey. 

Top Investment Advisors Take the Time to Ask Questions 

Ongoing holistic financial planning will account for adjustments and life changes. Retirement planning is like a road trip, sometimes your priorities change, and you need to alter your destination entirely. 

“Just because you didn’t see the pothole doesn’t mean it’s not going to hurt.” 

-Greg Hammer

An investment advisor should ask simple, decisive, open, and direct questions. 

The more data you gather, the better your decision-making will be throughout the planning process.  

For instance—instead of flying blind and reworking the Income Gap Assessment over and over, ask the customer an honest question.  

How much money do you want to be guaranteed in your financial plan when you retire? 

Now you know how much you need to put in annuities—it’s as simple as that. 

On a recent episode of the Rainmaker Multiplier On-Demand Podcast, Bryan Bibbo and DC Chamberlin recommend scheduling quarterly financial advisor-client communications with your VIP customers to keep them updated on how their accounts perform and ask questions about what is going on in their life. 

Additionally, don’t be afraid to ask them questions about themselves and their families. You want to connect with them on a human level, even if that’s through such commonalities as sports teams or musical tastes.  These questions will come in handy when nurturing your leads.   

Common Questions Financial Advisors Should Ask Their Clients 

  • Has your family experienced any major life events recently?  
    • Graduation 
    • Promotion 
    • Retirement 
    • Engagement 
    • Marriage 
    • Divorce 
    • Birth 
    • Medical Diagnosis 
    • Death 
  • Do you have any expected milestones coming up? 
  • Are you planning a vacation or other significant expenditure? 
  • Are you considering any surgeries or medical procedures? 
  • Since we last spoke, do you have any new financial needs, concerns, or goals? 

How can you utilize various financial advisor client communications to develop your relationships further and provide constant value throughout all stages of the customer lifecycle? 

Consider a card or flowers depending on the occasion. You can also use promotional products or corporate gifts around the holiday season to say thank you and stay top of mind going into the new year. 

Bryan recalled a client whose wife was turning 60, and he mentioned they were planning a trip to Tahiti for her birthday. Before the trip, his team sent them a travel book on Tahiti. 

Dave Alison suggests going so far as to ask where they’re staying and have a nice bottle of wine sent to their room.  

Want to learn more simple, practical financial advisor-client communications?

Schedule a free 20-minute consultation with a member of the C2P Enterprises Team to see how we can help you build strong relationships with your customers.

Financial Professional Use Only

The information provided in this presentation is not intended as investment advice or legal advice. The information provided is for informational and training purposes only. The information in this presentation was accurate as of the time of the material was created. Tax laws and rulings can frequently change. Please discuss the client’s current situation with an accountant or tax advisor.