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I recently heard about an advisor who got a call from a significant client who was really upset about an investment that hadn’t worked out. This client had a long history of being emotional … on this call he got so worked up that he accused the advisor of having recommended that investment because he got paid better on it than other alternatives.
The advisor got livid. He told the client that he didn’t like to have his professionalism questioned and they began yelling at each other over the phone.
Ultimately they fired each other.
Over the years, I’ve found that several principles are key to breaking the tension before situations like this become catastrophes.
Setting boundaries
Let’s be clear, nobody should allow themselves or their staff to be abused by clients. Unfortunately, there are some people who are bullies – that’s their nature and they are unlikely to change. And if you find yourself dealing with someone like that, I recommend that you figure out how to part company with that client.
I’ve talked to advisors with large clients so abusive that every time they had to call them or meet with them they got a sick feeling. When they finally parted company with them it was a huge load off their shoulders – as a result they became more productive in other parts of their practice and almost always ended up replacing that revenue more quickly than they’d expected.
Counting to three
I’m not talking about clients who are in the category. But let’s suppose you have a client who may be emotional and sometimes difficult but who you ultimately want to retain.
And let’s suppose they say something on the phone that upsets you, perhaps something like: “I don’t know why I’m paying all these fees for atrocious performance.”
When a client says something that pushes your buttons, consider doing two things.
First, before responding, count quietly to three, so that you don’t say something that you’ll regret.
And those three seconds of silence does one other thing –it lets clients know that they have crossed the line and they’ll apologize right then and there.
