6 client management tips for advisors

As many as 97% of practice management professionals say that “serving too many non-ideal clients” is a “moderate” or “major” challenge to advisor productivity, according to a 2021 survey by industry research firm Cerulli Associates.

The decision to part company with a client is not easy, especially for advisors who are just starting out in their careers for whom revenue is a key factor. However, there are many reasons that make a client “non-ideal” and hence equally good reasons for going separate ways.

How do you know when something’s not right? “When you see their number come up, you don’t want to talk to them,” said advisor Liana Poodiack of Poodiack Wealth Management. “If you have clients that are like that, generally that’s an indication that maybe they’re not a fit.”

Read more:  The case for firing that client, after this documented procedure

Communicating clearly and effectively is the bedrock of an advisor’s relationship with a client. But while simple enough in concept, in reality there is ample opportunity for misunderstanding and error.

In many cases, the advisor-client relationship is inherently imbalanced from the outset. An untrained client seeks a professional advisor schooled in the intricacies of finance and knowledgeable in the terminology of wealth management, which is in all likelihood Greek to the inexperienced investor.   

Indeed, given that by definition an advisor’s function is to make clear the investment options and opportunities for clients, bridging the communication gap is a prerequisite for success.  

Read more: 5 prescriptions for bridging the client communication gap

Crypto is an inherently volatile asset class. While all asset classes go up and down over time, crypto’s ability to scale massive heights in incredibly short periods of time with major dips in between is perhaps unsurpassed.

From Jan. 1 to Nov. 29, 2013, Bitcoin rose by 8,660% from $13.22 to a peak of $1,158, but with five separate dips of more than 20%. In the 20-month period from May 2016 to December 2017, the digital asset grew by 4,443% to a high of $19,800 with six drops of more than 20%.

Advisors can allay the concerns of their clients who may not be accustomed to, or indeed comfortable with, such volatility by talking with them ahead of time about taking action before it hits and reacting positively after it does.   

Read more: How to have ‘the talk’ with clients when crypto tanks