Silence creates space.

One of the biggest complaints about advisors is that clients don’t hear from them enough. Maybe this isn’t something you’ve heard about your own operation, because you’ve earned your clients’ trust. 

But it’s important to remember that trust can erode, and when you’re facing external pressures like turbulent markets and record inflation, that erosion can happen faster than you might expect. 

It happens because of the space that silence creates. Without effective communication, clients have more room to question the value of what they’re getting, and they have more reason to consider the value being created elsewhere. 

Even if your returns are exactly the same as the next advisor’s, it’s the one with the stronger communication process that will have the most success with retention and referrals. Developing this process isn’t something that will happen overnight, but you can start with these three goals:

Inform: Disclose the most essential information first. Not everyone wants to know what’s happening in the markets all the time, but if they’re curious, your perspective should be the one they rely on. 

Demystify: Explain what your methodology is and how it’s being applied today. When there is mystery around what you’re doing for your clients, they might begin to imagine that you’re not actually doing very much.

Connect: Make time for personal communication outside of the annual review, particularly for top clients. This mechanism can still be automated or delegated to some degree, but a few simple touch points can strengthen your connections with the relationships that are most crucial to the success of your practice.