More Important Than Performance Is How You Present It
Recent studies have confirmed what most advisors see every day: clients value trust more than they value slight variations in performance.
This may be common knowledge, but it’s worth dialing into the mechanics of what ultimately builds trust: clear communication. While much of the information IAs present at year-end meetings is generic and complex, the communication you have with clients should instead accomplish two things: help them understand you, and prove you understand them.
In other words, trust-building communication is that which is not only clear and accessible, but also a reflection of your commitment to that client’s personal needs.
Let’s start with the clear and accessible part. Since mystery erodes trust, the way you present an investment strategy, portfolio performance or a financial plan should demystify the concept in the mind of your client. If you can incorporate visuals and jargon-free language into your client presentations, you can help simplify complexity and contextualize information.
Clients can also benefit from having something tangible that they can walk away with and refer to without having to recall everything discussed in the meeting.
Trust-building communication happens when you’re presenting clients with new information; it also happens when you’re reflecting their own words back at them. The individuals you work with want to know that they’ve been heard, and that the work you’re doing is specifically directed toward the goals and priorities they’ve shared with you.
So in a literal sense, reiterate their stated objectives and other comments in communications like client proposals, meeting summaries and end-of-year review presentations. Help them maintain a clear outlook on their finances and provide updates in the context of their overall financial wellbeing.
It’s about helping clients understand what you’re doing, while showing them you understand what they need. Clear presentation of information—especially information about their personal financial picture—is an investment in the longevity of that relationship.
