Tips for Financial Advisory Firms to Improve Client Relationships

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Searching for new clients requires ample energy and time. Once you acquire them, you must retain them. Here, client management plays an essential role. Engagement is an essential aspect of a firm’s marketing strategy, as it helps to build long-term relationships.

When executed correctly, client engagement tactics, followed by financial advisory firms or advisors, can help generate constant revenue from their current customer base. Additionally, it helps to find and connect with new clients through research or referrals.

This article will discuss the useful tips financial advisory firms can use to strengthen their client relationships.

The Importance of Client Engagement for Financial Advisors

There’s no doubt that the advisory industry is very competitive. The way you approach client engagement plays a vital role in getting new business to your firm while maintaining good relations with your existing clients.

If your firm’s client relationship tactics are superficial and don’t add value to clients, they will not consider keeping a permanent association with your firm. Chances are they will look for another financial advisor and will not refer you to their friends, family, and acquaintances who might need an advisor.

Engagement presents a chance to get to know clients personally and better understand their objectives and needs. When your advisory firm has a clear understanding of clients, it can suggest the best solutions customized to their specific situation. It can result in better client outcomes, motivating them to continue working with you and recommend your firm to others.

In a nutshell, effective client management can:

  • Help to develop trust and improve client loyalty.
  • Help to get more business and create an end-to-end revenue channel.
  • Offer the data you require to cater to your clients better.
  • Drive referral traffic.

There is no need for you to take on the role of your client’s best friend. However, your efforts to engage clients will make them realize that you have their best interest at heart.

Data Reveals Clients Need You

According to recent studies, clients don’t merely want a close association with their financial advisor; they need it. According to a study conducted in 2022, it was revealed that:

  • 50% of Americans aren’t aware of how to manage their personal finances and need expert guidance.
  • Close to 36% of millennials opt for manual tools, such as Excel spreadsheets, paper, and pens for managing their finances.
  • Nearly 73% of Gen X Americans today tend to fret about their financial future more than before.
  • About 88% of affluent Americans are searching for a customized digital financial experience.

Hence, the data at hand highlights that your clients require the assurance you can provide in their financial planning through your expertise. They want you to provide your expertise through a personalized digital platform, which is much easier than before.

Start With Asking the Correct Questions

One of the essential parts of client engagement is to ask in-depth and crucial questions for a comprehensive financial planning process. The questions a financial advisor should ask include:

  • What are your objectives?
  • What is your desired lifestyle?
  • What is your risk-tolerance threshold?
  • What do you wish to gain from financial planning?
  • Are you financially accountable for anyone?

According to Asset-Map, one of the vital questions to ask is if your client has an insurance agent, accountant, or lawyer. When you collaborate with people associated with your client, it helps to understand their financial status better. When asking a few additional questions, you should know who you need to contact.

Answering all these questions will help you assess your client’s financial situation and provide more customized solutions, fostering a personalized relationship. It’s essential to understand that you need more meetings to understand your client.

Request Client Feedback

When you ask for feedback from your clients, it speaks about your commitment to ongoing improvement in managing various aspects, like the 401(k) plans for a business. When clients provide you with constructive feedback, you can recognize the areas where you need to improve as a financial advisory firm.

Highlighting the value you add to your client’s financial portfolio, for instance, by accomplishing certain financial milestones and improving their investment returns, emphasizes your credibility as a financial advisor.

You can ask for your client’s feedback in several ways. One of the smart ways is to send out a survey through email and request that your clients share their reviews on your website or a third-party review website. Furthermore, you can ask them for feedback during check-ins and meetings to see if they are content with your service or want to share suggestions for improvement.

Appreciate Your Clients 

Your clients want to feel appreciated, and you can accomplish this goal in many ways, which also helps foster engagement. You can send them a birthday or business anniversary card with a personalized note that will have much meaning for them, and they will cherish it.

If you have the resources, plan something bigger, for instance, a client appreciation get-together. It can be an informal event, like a bourbon tasting at an eminent local distillery. If you wish to make it educational and offer value, you can plan a complimentary estate planning workshop.

Schedule such events once or twice a year to thank your clients. It will provide you with the scope to interact with them personally compared to the traditional, official meetings held in conference halls.

What Do Market Experts Say for Improving Client Relationships?

A stable financial advisor–client relationship, when managed well, will last for several years. According to market experts, here are a few tips for enhancing client relationships.

Ensure Better Information Access, Stephen Bruce, from The Family Office Group

There are times when your clients will fail to understand the investment choices they have at hand. The private markets aren’t reserved any longer for only investors with an extremely high net worth. 

As a financial advisor, you should start to educate your clients on the investment options available through simple and coherent content. It will help in better knowledge sharing as well. It will help your clients make informed investment decisions and count on you for sound advice.

Ensure Frequent Check-Ins, Meredith Moore, from Artisan Financial Strategies LLC

There are times when financial advisors miss out on check-ins with their clients. If you think an annual review is all that is needed, then it’s the bare minimum. There are several incidents taking place throughout the year, for instance, the need to select investments for a retirement plan or the refinancing of a home equity line. 

Hence, you must check in with your client frequently so that you know about their financial landscape well and can suggest solutions accordingly.

Demonstrate the Advantages of Technology Tools, Amir Eyal, from Mylestone Plans LLC

If yours is a savvy financial advisory firm, chances are you know and have access to advanced technology tools that help you cater better to your clients. A few advisors miss this mark when they fail to let their clients know how the latest tools can benefit them quantitatively.

As a financial advisor, you have the scope to correct any pitfalls by getting all these ‘behind the scenes’ client relationship management tools while conducting a client review.

Listen To Your Clients, Stacy Francis, from Francis Financial, Inc.

Make sure that you listen to what your clients have to say in terms of their concerns, values, and goals. Try to create a comfortable space for sharing where they can voice up all that they want from financial planning without feeling judged or criticized. It’s not a good idea to push your agenda or plan.

There are times when advisors use financial jargons without keenly listening to their existing or prospective clients. This is not a good practice. Instead, keep the client’s goals and interests in mind while you communicate with them, and strengthen the relationship by allowing them to talk freely. Once you have listened to them carefully, you can share your suggestions, that way, they will feel heard and acknowledged.

Quit Using Inflated Tools for Calculating Retirement Plans, Geanette Rodriguez-Ojeda, from Prestige Finance LLC

At times, financial advisors end up using automated retirement calculation tools, which might intimidate clients. This will affect the client-advisor relationship in such a way that the client will have problems trusting you.

Therefore, your financial advisory firm should opt for a realistic approach in assessing a client’s present and future financial mandates. You should also consider every income source, like social security statements and pensions, to correct this loophole.

Try To Know Your Clients Closely, Mia Erickson, from Whitnell

A vast majority of people think that financial advice is mostly about money. The truth is that it’s not. Instead, it’s all about the client’s objectives and requirements. However, for a client to tell you their dreams and wish list, you have to earn their trust. And one of the best ways to get there is to try and know clients deeply, beyond the superficial level. Financial advisors can use coaching to learn how to approach clients and get to know them better.


When you take time to improve your client engagement initiatives, it helps with positive returns, from new clients to referrals and appreciation from existing clients. It will also add to the reputation of your financial advisory firm for the holistic approach you take to service clients better. As a result, your firm will have a competitive edge over others, which will benefit both your revenue and customer goodwill.

I'm Allison Dunn,

Your Business Executive Coach

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