Thursday 27th January 2022
Helping clients focus on their long-term picture during uncertain times
Financial professionals are the critical link between the clients’ world and the vast financial system. What often distinguishes financial advisers during troubled times is the ability to communicate between these two worlds effectively. Invesco Global Consulting’s mission is to help financial professionals do exactly that. As we speak to financial professionals during times of market volatility, we find ourselves turning to three main points, again and again:
- Make sure you are caring for yourself
- Focus on clients’ personal implications rather than market moves; and
- Never lose sight of the long term
Our research shows that maintaining resiliency, letting your clients know you’re there for them, and keeping your eye on the long term can make all the difference when markets become unstable. Here are some of our top tips from “What Matters Most Right Now: The Resilient Advisor,” Invesco Global Consulting’s framework for working with clients and strengthening performance.
It’s especially important during times of uncertainty that financial professionals keep their clients focused on the long term. Faced with short-term pressures, clients may understandably lose sight of their long-term goals or feel swayed by emotions rather than facts. You can play an invaluable role in keeping your clients from making rash decisions.
Our research has found that three words — “long-term,” “diversified,” and “strategies” — most effectively convey the measured, thoughtful outlook that clients crave during a crisis. When asked about various terms used by their financial advisers, clients responded best to these terms. The percentages below represent the number of clients who prefer hearing these words from their adviser.
75% – Long term
60% – Diversified
40% – Strategies
Finally, we discovered from our research on “the power of flaws” that putting too much pressure on an unachievable goal inhibits your resiliency and is also off-putting to clients. While we all want to do our best for our clients, that doesn’t mean we can, or should, have all the answers. Clients don’t expect us to be perfect, they generally know that markets are unpredictable and don’t expect (or believe) guarantees. Implying that you can know the unknowable undermines your credibility and can cause a loss of trust in the process.
Top-performing financial advisers are eager to offer their best selves to their clients. We also know that it can be easy to lose sight of how to accomplish that goal and maintain a sense of normality during unexpected turmoil. However, those who can do so will stand out. What’s required is not superhuman discipline or a magical crystal ball but the ability to stay true to fundamental truths and time-tested advice, when others succumb to emotion. This will be a difficult period for many clients, and financial advisers have a vital role to play in ensuring success. By keeping yourself in the right mindset, focusing on the personal impact for each client, and never losing sight of the big picture, you can show your value today more than ever.
Invesco Global Consulting is a unique resource that exists to help advisers in the three areas all advisers consistently focus on – winning new business, retaining existing clients and growing their wallet and market share. We focus solely on the importance of the client relationship, methodically researching the language of our industry and the emotions associated with it to create actionable and implementable practice management and business strategy programs, assisting advisers across Australia.
