To be a successful financial advisor, you need clients; without them, it’s impossible to make an income or maintain your job. Unfortunately, just as with any other industry, clients call the shots, and there are a handful of reasons that they’re likely to fire a financial advisor. While the umbrella reason that a financial advisor will be fired is because the client is unhappy with their services, it’s absolutely crucial that you breakdown the underlying causes. Without looking at these factors, it’s impossible for you to change for the better.
In today’s blog, we are going to cover some of the most common reasons that financial advisors are fired. Our hope is that by presenting you with these reasons, you can pay more attention to some of the areas that clients are most frustrated with. Let’s get started.
As you may have guessed, communication (or the lack thereof) is one of the primary reasons that financial advisors are fired by their clients. Given that money is the name of the game in the financial advisory world, communication becomes all the more important. Finances can be a sensitive subject for people to introduce strangers into the conversation, but it is equally challenging for people to share control and decision making when it comes to their money. Under these circumstances, communication becomes all the more critical.
Aside from communicating regularly with your clients, the information that you’re communicating needs to be valuable to them. You are someone that they’ve purposely hired to help with their finances, so they aren’t only looking for you to simply touch base. Each time that you connect with them, there should be some information that you’re sharing with them, an update that they’ll be happy to hear, or a plan of action that can direct them as to what you’re doing. Every form of contact needs to have a purpose.
Difficult to Get Ahold Of
Following our point about communication is something very closely tied to communication: availability and access. As someone that is hired to work for an individual, it’s crucial that you are available to them when they need you. Of course, you shouldn’t be readily available or on call at all times. It is, however, vital that you are available for questions, concerns, inquiries, and the like each and every day.
Don’t get us wrong, we entirely understand how busy the day of a financial advisor is. That being said, it’s essential that you spend some time creating a loose schedule that you follow pretty regularly. Whether you choose to start your day catching up with emails and returning calls or you immediately jump into creating new strategies for your clients, you always want to factor in some time for clients to stop by and chat or call you and ask their questions.
Finances are something that everyone needs to manage. While that may be the case, not everyone goes to a financial advisor for guidance or assistance. When they do, they’re hoping for solid advice that helps them obtain more money or advance in their finances. If you’re unable to provide them with quality guidance or answer the questions that they have, they’re going to lose respect for you almost immediately. To avoid this, you want to ensure that you’re not making rash decisions or answering just to answer. It’s always better to let them know that you need some time to review or find an answer rather than respond poorly.
Lack of Results
It should go without saying — if your client’s investment portfolios aren’t performing well, they’re probably going to fire you. Money doesn’t grow on trees, and it’s not easy for people to trust others with their money. That being said, as a financial advisor, you are one of the few that people will turn to for guidance with their finances. When things go poorly, trust is often lost, and clients jump ship.
Of course, it’s difficult to guarantee results for clients, especially when you’re merely playing the game of the market. For that reason, the strategies that you implement when investing need to be smart. To do that you need to continue to focus on your education, follow the market, stay up to date on market news, and spend time working through your strategy. It’s time-consuming, but if you do it correctly, you can maintain a happy client base. Luckily, technology has made it just a little bit easier for you to create a sound strategy. Alpha Droid is one of the many tools that you should consider adding to your financial advisory practice, and here’s why.
Why Add Alpha Droid to Your Strategy
Finances aren’t the only strategy that financial advisors need to focus on. Customer retention and growth are equally important to the success of individuals in this industry. The team at Alpha Droid completely understands how challenging it can be to wear the various hats that this position requires you to wear; that is why we’ve created an asset allocation software that makes your job just the slightest bit easier.
Our software will provide you with insight into the current market as well as a portfolio of strategies to help create investment strategies for your clients. Overall, our software can save you a lot of time! The best part is, you’re not only saving time, but you’re also helping your clients by providing them with sound investment strategies. If you’re interested in seeing this software for yourself, get a glimpse in our 30-day free trial. For any additional questions or inquiries that you have, reach out to our team, and we would be more than happy to get you taken care of.