The standard process for an investor seeking an advisor is to ask around and get referrals from family members, friends, and maybe even coworkers. Then the pondering starts and hesitation begins because often times the investor doesn’t really know what to look for and is fearful they may choose the wrong advisor.
If the investor takes the most effective approach they will interview numerous advisors which will be narrowed down to about 3 to 4 choices and so begins the angst and daunting process.
In the investor’s mind they may favor 2 out of 4 potential advisors based on first impressions: personality, looks, style, and over all demeanor. However, they still don’t know what level of service any of the finalists actually provide to their clients.
I saw this when I was an advisor and continue to see it in our investor research. The quest for the right advisor impacts some investors so much they suffer anxiety, stomach ailments, and even depression. The risk is very real to them and they know it can have an everlasting negative or postive impact on their retirement future.
I don’t think the investment community really understands the stress that investors face when seeking an advisor for the first time and I know they don’t understand the angst when an investor is looking to leave their current advisor because of his lack of service just to start the process all over again in finding another who may be worse- not better.
A great advisor who really understands customer service will take the time and step out of his own shoes of the daily quest to gather assets, and see the big picture of what investors go through. If an advisor can successfully do this, then his business will grow because his clients will speak highly of him and others will remember it. For the other advisors that put on the act - you can fake sincerity, but ultimately your actions and bottom line will reflect it!
Nothing, and I mean nothing, will make an advisor shine and produce more referrals than great customer service. It’s what business is all about; the relationship. And the greatest asset retention tool a financial advisor has at his disposal is his reputation for great customer service.
It’s easy for an investor to leave their advisor when there’s no relationship, they just have to go through the process I mentioned earlier to find the right one. But when a strong relationship exists, there is an emotional tie that has to be broken and the investor is less likely to walk out that door when their portfolio is taking a beating in the market. So, the question advisors need to ask themselves is this: How many of your clients are with you only until they find someone with better customer service?
Here’s where financialJoe’s “Track Advisor” tool comes into play and helps take away the angst an investor feels and provides the assurance that they made the right choice. After the investor interviews all their potential advisors, they can add and track those advisors on their “My Advisors” page at financialJoe watching how each advisor is reviewed by their clients over several months. The “Track Advisor” tool can easily and efficiently assist them in making their overall decision.
If an investor really wants to put each advisor to the test based on performance, they can track each advisor’s recommended portfolio 0n their personal “Myfinjoe” page, but we don’t recommend that an investor ever make a decision on which advisor they choose based solely on portfolio performance…which comes and goes.
Hope your day started off great and ends even better.
Shawn Tierney, Founder/CEO financialJoe