The Importance of a Clear Structure for Client Reviews:

Building Strong Relationships and Managing Expectations

As financial advisors, one of our most important responsibilities is to ensure that clients feel heard, understood, and valued. I met with a client of a financial broker recently and he indirectly explained to me that neither felt heard and valued. As a result, he was contemplating whether he needed to make a formal complaint to the Financial Ombudsman. A simple empathetic conversation with the client would have solved the whole situation. Client reviews are a critical part of this relationship-building process. They offer the opportunity to not only assess a client’s financial progress but also to provide reassurance, adjust plans as necessary, and most importantly, reinforce the bond you have with them. Without a clear structure though, it is clear client reviews can sometimes feel unorganised or rushed, leaving clients feeling uncertain or underappreciated which is what happened in the above situation.

In this article, we’ll explore the importance of having a structured approach to client reviews, the benefits of a clear framework, and how to ensure that clients feel important throughout the process.

Why Having a Clear Structure Matters

A structured client review process benefits both you as the advisor and your clients. Here’s why:

1. Consistency and Professionalism: A clear structure ensures that you cover all key topics systematically, making the process more efficient and ensuring that nothing important is missed. This consistency helps you build trust with clients by demonstrating professionalism and reliability.
2. Efficiency: When you have a framework to follow, you can conduct reviews in a timely manner without feeling rushed or disorganised. This improves your ability to manage multiple client meetings and prioritise effectively.
3. Clarity and Confidence for the Client: Clients are more likely to feel secure and engaged if they understand the flow of the review. A structured approach provides clarity about what will be discussed, leading to a more productive conversation.
4. Proactive Problem Solving: Regular, well-structured reviews allow you to identify potential issues before they become bigger problems. By reviewing the performance of investments, goals, and other aspects of their financial plan, you can offer timely advice or make adjustments as needed.

Key Elements of a Client Review Structure

Now that we’ve established why structure is important, let’s look at what an effective client review structure might include. Here’s a framework that will help you stay on track during the review process:

1. Preparation:
   • Before the review, ensure that all relevant documents, statements, and reports are up-to-date and organised. This includes portfolio summaries, goal tracking, and any other documents that reflect the client’s financial status.
   • Review the client’s goals and any changes in their life circumstances (e.g., retirement plans, new family additions, or major purchases). This will help guide the conversation in a more personalised direction.
2. Welcome and Recap:
   • Start the meeting with a warm greeting and a brief recap of previous discussions. Ask the client how they’ve been doing and if there are any new questions or concerns they would like to address. This helps to build rapport and shows genuine interest in their life beyond the numbers.
3. Review of Performance:
   • Go over the performance of investments, savings, and other financial aspects in a clear, easy-to-understand manner. Use charts, graphs, or other visual aids to make the information more digestible.
   • Relate the performance back to the client’s goals and explain any variances. This helps the client understand whether they’re on track or if adjustments are needed.
4. Addressing Concerns:
   • Ask open-ended questions about how the client feels about their current financial situation. Are they comfortable with their portfolio? Are there any changes in their life that may require a shift in strategy?
   • Be a good listener. Show empathy and understanding when clients express concerns, whether they are related to market conditions, personal finances, or broader economic factors.
5. Proactive Solutions:
   • Based on the review, propose any adjustments to the financial plan. Whether it’s reallocating investments, revising retirement goals, or addressing tax planning strategies, offer solutions with clear explanations of the rationale behind your recommendations.
6. Closing and Next Steps:
   • End the meeting by summarising key points discussed, confirming any agreed-upon changes, and setting the next meeting date.
   • Reassure the client that you are available for any additional questions or concerns that may arise between reviews. This provides ongoing support and reinforces the client’s sense of importance.

Making the Client Feel Important

One of the most important aspects of any client review is ensuring that your client feels valued and heard. Here are some ways to make sure clients feel important throughout the process:

• Active Listening: Throughout the review, listen carefully to what your client says. Acknowledge their feelings and concerns, and make sure they feel understood. Clients who feel that their concerns are being heard are much more likely to remain loyal to you.
• Personalisation: Tailor the review to your client’s specific situation. A personalised approach shows that you’ve taken the time to understand their goals, preferences, and financial life. This adds a level of care and attention that goes beyond a simple financial transaction.
• Acknowledging Achievements: Celebrate milestones and progress, no matter how small. If the client has made positive strides toward their financial goals, be sure to acknowledge and congratulate them for their efforts. This builds a sense of accomplishment and motivates them to continue on their financial journey.
• Follow-Up: After the review, send a thank-you note or email to express appreciation for their time. This simple gesture can go a long way in strengthening your relationship.

Managing Client Expectations

There are so many things that you can’t control in supporting clients but the one thing you can control is how you manage their expectations. It is fundamental that you know how to align client expectations with the actual service provided especially as financial services are intangible, in that they can’t be seen or touched.

If you have communicated certain expectations to your clients (e.g., regarding the performance of their investments or the frequency of reviews), it’s important that the review process aligns with what they expect. Any discrepancies between what was promised and what is delivered can lead to dissatisfaction and trust issues.

The following are useful to manage expectations:

1. Set Clear Expectations Upfront: From the very beginning of your relationship with a client, be clear about what they can expect during client reviews. For example, let them know how often they’ll receive updates on their investments or when they can expect to have a formal review of their financial plan. Setting these expectations helps prevent misunderstandings.
2. Communicate Regularly: During the year, keep clients informed about any changes or developments that might affect their financial goals or portfolio. When the review comes around, the client should already have a sense of what to expect, making the process smoother and more engaging.
3. Be Transparent: If there are areas where performance isn’t meeting expectations or if there have been market fluctuations that may affect their portfolio, be transparent and honest. Clients appreciate when their advisor is upfront, and it helps manage their expectations for future reviews.

Conclusion

A clear, well-structured client review process isn’t just about discussing numbers, it’s about building trust, demonstrating your expertise, and reinforcing the personal connection with your clients. By offering a clear structure, listening attentively, and managing expectations, you create a foundation for long-term success and client satisfaction. When clients feel heard, valued, and well-informed, they are more likely to stay engaged in the financial planning process and feel confident in your ability to guide them toward their goals.

Remember, the goal isn’t just to meet expectations, it’s to exceed them. By fostering a relationship that goes beyond the transactional and truly supports your clients in achieving their financial goals, they will be in good hands for the future.

If I can help you further, please reach out to me on www.advisorboard.ie