From accounting to moviemaking to policing, the ability to nurture solid relationships leads to success. The same applies to your relationship with a financial planner.
You’ll find that top advisers are able to connect with clients on an emotional level, says Matt Oechsli, founder and chief executive of the Oechsli Institute in Greensboro, N.C. A popular author and professional speaker, Oechsli urges advisers to cultivate relationships with their most valuable clients that go beyond investment tips or financial planning recommendations.
“You want to treat your clients like a good friend,” he said. “Do things personally with them. Let them know about your kids” and ask about their family, hobbies and travels.
Through his research, Oechsli has found that affluent investors rate an adviser’s “personal presence” and “people skills” as essential traits in building trust. That means if you find an adviser who shows genuine interest in your past, present and future, you’re likely to feel a stronger bond.
Specifically, Oechsli suggests that advisers keep a social calendar and book lunches with top-tier clients on a regular basis. He defines the top tier as the 20- to 25 individuals who represent an adviser’s most-treasured clients.
“The biggest challenge in keeping a social calendar is putting a structure around relationship management,” Oechsli said. “Advisers tend to wing it. But it’s better to discipline yourself to maintain a written pipeline [of social events] on an Excel spreadsheet and keep at it with all your top-tier clients, not just the ones you already like to spend time with.”
During these lunches and other social encounters, individual clients should look for the adviser to forge a personal connection. Don’t expect much talk about your portfolio, market commentary or formal discussions about estate planning, life insurance or tax strategy.
Oechsli’s advice for advisers: “The less you talk business, the more business you’ll get as a result. There’s always going to be a chance to dive into your technical knowledge later. For now, ask lots of questions, especially follow-up questions [as clients open up], and make fewer statements about yourself.”
Clients respond to advisers who practice what Oechsli calls “the three Cs”: concise; conversational, and confident. When an adviser doesn’t talk too much, listens well, and radiates enthusiasm and warmth, clients come away with a lasting positive impression.
“You can’t fake an emotional connection,” Oechsli said. “The problem is some advisers think that because they have an occasional nice conversation on the phone [with a client], that’s an emotional connection,” when a real bond flows from more face-to-face socializing.
Some advisers struggle to take Oechsli’s advice. Even if they arrange a series of lunches with top clients, they may dominate the conversation or focus on business matters.
“The affluent hate that,” Oechsli warned. “They don’t want advisers who brag about themselves or who go on about their technical skills. But we see veteran advisers all the time when they’re out there socially, it’s all about them and they talk too much.”
