Why Strong Client Communication Prevents Panic During Market Volatility

Nothing tests how well you communicate with your clients like experiencing world events that – if they weren’t working with you – might send them into a panic. Instead, they are calmly weathering the storm.

The last month has seen some wild activity in the stock market. As usual, I’ve stayed in close contact with my clients, asking them if we need to increase our communication: what questions are their clients calling them with? What worries do they have? What can we address?

And most of my clients have said, “We’re not really hearing from anyone.”

Given what’s going on, the silence they’re experiencing from their clients isn’t because they’re disinterested. (No one can look at their retirement accounts fluctuate and not give at least a little attention.)

It’s because their advisor – my client – has communicated in such a way that they know they’re in good hands.

Whether it’s in review meetings or monthly/weekly newsletters, the advisors have stayed in close communication with their clients, letting them know what they think about what’s going on. They’ve talked about their process, why they invest the way they do, so the client is confident their portfolio can get through this. They’ve made them feel comfortable when other investors might be panicking.

Some of this reassurance happens when they meet one-on-one. But a lot also happens with consistent email communication. Here’s how we do it:

• We make sure that we stay consistent with a newsletter. Whether it’s weekly or monthly, we don’t deviate from the schedule.

• We create thoughtful content that addresses the ideal client’s specific questions. Are there things in their specific geographic area that need to be discussed? Is something affecting business owners right now? Are clients experiencing ups and downs in their industry? What’s happening that could affect their family?

• We make sure to include financial education that meets them where they are. We explain terms that they might not otherwise know but in a way that’s engaging a palatable. We want to ensure they know why the advisor does what they do so their questions are answered before they’ve even thought of them.

This type of communication isn’t “in your face” – it’s messaging that creates impact over time. Eventually, knowing what’s going on or at least having the confidence that your advisor knows what’s going on is like second nature.

So, when an advisor tells me their not hearing from a ton of people when the market fluctuates, that calls for a celebration.

We’re doing things the right way.