In the current environment of unpredictable markets, you may be fielding frequent calls from worried clients – and experiencing more than a little worry, yourself. Here are some areas of focus, for maintaining the confidence of existing clients and for finding new clients as well.

Communication
Your task is to reassure people that you understand the significance of recent events, that you empathize with their concerns, and that your advice is (if anything) more important than ever. Reach out to all of your clients via newsletters, personalized emails, Web bulletins blogs, or other media. I also encourage you to share your message with prospects and other investors who are concerned about their financial situation. Your clients trust you and want to know your overall opinion of the financial crisis. Remember to avoid jargon, maintain a positive and realistic throughout your communication, and limit references to other “experts” – especially those who are already in the media. Use your own voice.

Along with mass communication, you should also proactively contact your clients, via phone or face-to-face meetings, with a personalized interpretation of today’s market environment. Many clients have seen a decline in their portfolio but nonetheless are still on track toward their goals, requiring only minor adjustments. Others will need your help in revisiting their financial plan. If you identify and talk through a change process with concrete steps, then the client will be empowered to act instead of feeling helpless. Make sure you review past plans, so you can reinforce your earlier objectives and adjust if necessary.

Financial Planning
For advisors who provide planning as a fee-based service that is separate from investment management, the crisis is in fact an opportunity to create premium value for clients. The careening up-and-down markets are beyond your control, but helping a client to plan for the “certainty of uncertainty” is well within your control. Be sure to stress this component of your value proposition in client communications.

Of course, not all advisors currently offer separate fee-based planning. Unfortunately, I cannot say that now is the ideal time to introduce new fees to clients, at a time when so many of them are likely struggling. However, you can make plans to introduce separate fee-based planning in the future. Investigate this idea, as it represents a revenue stream that is tied to controllable value rather than the market.

“Crunch-time Referrals”
The crisis also represents an opportunity to reach out to many investors who either (a) don’t have an advisor at all or (b) have an advisor who is unable or unwilling to change along with the client. Referrals are more important than ever as a means of communicating your value proposition – but how you explain that value proposition matters. The standard recommendation (“I’m happy with my advisor; they do a good job for me”) is not a crunch-time referral. Here is a crunch-time referral:

“I had the same concerns you did about the market. I am working with an advisor that has a defined process. We set specific goals, measure progress against each goal, and quickly account for where the gaps are and how to respond. In fact, only one of our three discussions each year is specifically about my portfolio; the rest are about my goals and how I can plan for the unexpected. I sleep a lot better at night knowing that we are prepared for a wide variety of scenarios.”

Anxiety and emotions are high these days, but your confident presentation of a well-defined planning process – one that addresses all market environments – is exactly what prospects need to hear today. Make sure that you’ve documented your process in an easy-to-understand manner, and consider using work-flow charts that graphically illustrate your decision-making process. This logical approach will help alleviate some anxieties and position you as a trusted advisor. Remember—keep it simple.

Conclusion
By communicating with clients, reinforcing your process-based value proposition, and enhancing referral opportunities, you not only can retain clients in this difficult environment but in fact can grow your business.