Steps in Maintaining and Gaining Market Share
Are you diligent in making calls to your top tier clients? In past Bears, you have learned the lesson that making frequent client calls is a great way to hand hold your clients.
1) Bring your client back to the original plan and goals.
2) Let your clients know that the markets and investments are set up to make the layman minimize return and possibly lose capital.
There is also a high tendency for investors to avoid making changes to their portfolio despite good reasons for doing it.
3) Be armed with at least 3 solid stories of your clients who weathered bad/volatile markets in the past and came out ahead using your advice. The reason your clients panic during market downturns is due to emotion, not logic. Dont try to console them only with logic, they wont stay convinced. They can’;t remember the logic and are again consumed by emotion. That is why you should always use solid Behavioral Economics arguments followed with stories the clients can remember. If you can do that, you wont have to say the same things over and over to the same clients.
4) At the end of the conversation, ask for referrals. I am sure the last thing you think of in a market downturn is ask for referrals. Its like asking a car crash victim to buy life insurance while still in the ambulance. Yet while most advisors don’;t even call their clients during downturns, you will be able to pick up more market share (clients) who are terrified about losing even more money.
According to one study, 57% of your clients would leave you if another advisor approached them. This means that many High Net Worth clients would meet with you if you had the courage to ask.
After steps 1-3, here are the words you can use to gain referrals:
I really enjoy working with you.
Contrary to common sense, your clients depend more on your ability to communicate than your ability to pick investments.