we think that offering specifics on how an advisor can assist a client can be a strong approach in this uniquely unstable market. That means rather than sending an emailed newsletter to clients inquiring about help or asking how an advisor could assist, instead try offering a reminder of all the ways you can help.
The volatility in the market, and the whipsawing reactions to it, have ushered in an email maelstrom of offers of help. Advisors may feel like those offers are falling on deaf ears. In such a unique market, why aren’t more clients responding? It could be that clients don’t know how to respond to offers to help that aren’t specific. Instead of reminding clients you are ready to help, try offering clients a rundown of all the ways you can help.
While it’s helpful as a client to see a reassuring note from their advisor’s firm sent early into a crisis reminding them that the aren’t alone in facing a volatile market or economic upheaval, some clients may not know what help they need. Reminding a client you are available for help is a great start. But it isn’t engaging. A mere reminder may seem like a quick check in. Advisors may want to dig deeper and offer help. In those cases, we think how you offer the help is essential.
Take for example, the difference between the questions "do you need help?" and "how can I help?" In the first question, the advisor is offering to help. That can reinforce that assistance is available, which is an excellent start. Yet, the second of these questions literally shifts the burden onto the one asking. That might make it easier for clients to respond. Additionally, by using an open ended question (how), the advisors invites a longer answer than the black and white answer of the first question. It’s possible to take this interaction one level deeper though.
As an alternative to reinforcing that help is available or inviting your client into a conversation where they can raise concerns, we think that offering specifics on how an advisor can assist a client can be a strong approach in this uniquely unstable market. That means rather than sending an emailed newsletter to clients inquiring about help or asking how an advisor could assist, instead try offering a reminder of all the ways you can help. That could look like a simple email noting all of the resources your firm has to offer. Or it could include specific concerns matched with specific resources. For example, the email could note concerns about 529 plan investments specifically, since those are often on shorter time horizons. Advisors could provide information targeted to graduation dates for parents with 529 plans.[1] That could include assisting with converting assets from stocks to more cash-like funds (such as savings accounts) or learning which specific states allow contributions from grandparents and other family members into 529 plans.
Advisors can also choose to send specific emails based on retirement stages noting specific areas of help. For example, clients in GenerationX may need more information about their parent’s retirement plans than their own, since they could have to shoulder a drop in retirement income if their parent’s investments do not rebound. That generation may be well served by an educational program that explains the process of placing assets in trust for a parent’s care.
Advisors should also consider messaging offers of assistance across multiple channels. That means reaching out to clients not only by newsletter but also potentially changing the landing page for their firm. Advisors may also want to consider what messages they can send on social media channels as well. In general, offers of specific services or tools are often not considered advice, though advisors should always consult with their counsel before communicating with clients and potential clients.
There’s no wrong way to offer help to clients in this unusual market situation. However, a bit of careful thought may go a long way to making it as easy as possible for clients to use their advisors during these odd and anxious times.
These articles are prepared for general purposes and are not intended to provide advice or encourage specific behavior. Before taking any action, Advisors and Plan Sponsors should consult with their compliance, finance and legal teams.
Before leaping into the unknown, we recommend a thorough examination of your plan. Because we are experts in the field, we know the marketplace and know what your existing vendor is capable of offering. Through this examination, we can help you optimize the service you receive.
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