Sentiment vs. Reality
Consumer and investor sentiment, for one reason or another, does not always align with the reality of economic or market conditions. And that misconception can actually end up changing those conditions. This is an ongoing problem in economics, and it has its parallel in the advisory relationship.
Clients have a general feeling about the value you’re providing and the direction you’re leading them in. For many IAs, there is a gap between this sentiment and the reality of the relationship, where closing the gap could mean stronger client satisfaction, loyalty, and referral generation.
One of the main causes of this mismatch is the difficulty many advisors find in conveying the full value of what they do. Your work is often complex and behind-the-scenes, with payoffs that happen over long periods of time. So how do you get this value across?
To start, you can use your annual reviews, year-end updates and client communications to provide a reminder of all the resources your clients are benefiting from, all the recurring tasks that fuel their financial strategies, and the unique features and credentials of your team. Present not only quarterly returns, but also progression toward goals, year-to-date highlights, personal investment benchmarks and assets saved or protected through strategies like tax loss harvesting.
By communicating this information not only through talking points but also through a clear outward brand, you can also help correct any sentiment–reality gaps with potential clients as well, so that viable prospects can readily see who you work with and what your capabilities are.
As for topical communications, it’s important to frame the current market and economic climate in the context of client needs, focusing on the factors that most directly affect clients’ trajectories and presenting your rationale for either taking or not taking action.
You can’t change reality, but you can help inform sentiment—and sentiment is what drives decisions to work with you, trust you and refer you.
