How to Thrive in a Crisis
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The market has tanked. Your clients are terrified. Your business is down. If you are like most advisors, you are playing defense. Nobody is going to seminars. Nobody wants to meet with you face-to-face. It is easy to be paralyzed and do nothing.
In the great recession of 2008, 72% of advisors were avoiding calling clients for fear of losing AUM. Ironically, 82% of clients during that period were looking for a new advisor because of the same lack of contact. As history repeats itself, you will lose clients and fail to gain new ones unless you make dramatic changes right now. The solution is to contact your clients and prospects at a rate you have rarely done before. But you must use the right script.
According to the University of Connecticut, 89% of your clients care more about the relationship with you than the fees they pay. According to Forrester Research, clients want three things:
- Understand what they bought;
- Have faith that you are watching out for them all the time; and
- Frequency of contact.
If you apply this research, your business will not only survive, but thrive. If you do the following steps effectively, your business will grow 38% in the next 30 days.
1. Catch up
Let’s break this down. Call any clients you want to retain and catch up on the family. Ask about the kids, spouse, and loved ones. You might even catch up on anything that happened since you last spoke. The average advisor talks to their clients every 18 months. The average client starts thinking about a new advisor relationship in the 19th month. During normal periods, you should be calling your clients every three months. Now, it’s critical to call your clients every two to four weeks.