Client Relationships: Performance or Personalized?
When the financial markets become volatile, which is confusing and upsetting to clients, the blame game begins. Financial advisors who have established and maintained a relationship with clients that is based on “performance” will often suffer the unintended consequence of losing clients. When the relationship is based primarily on performance, the advisor becomes a commodity. The client might move on to the proverbial greener pasture, induced by the intoxicating attraction of higher yields or lower costs.
A “personalized” relationship, where there is frequent meaningful contact and trust, creates a “stickier” professional environment that is not as impacted by the ups and downs of the market. Clients resist change in a relationship when they feel the personal touch, knowing their advisor understands their situation and is making recommendations that are thoughtful and in their best interests.