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Financial Advisors – Why Building Community is Key

March 18, 2020 (0) Comments

Every economic recession in recent history has been a result of crises of all shapes and sizes. In the early 1980’s it was sudden stagflation from the oil and energy crises in the ’70s. In 2008, it was the housing bubble peaking 2 years prior. And today, in 2020, the uncertainty of the global economy with the Coronavirus outbreaks all over the world followed by an oil price war.  These recessions and crises all pose an immediate threat to financial advisors because once the economy goes sour, even for a brief period, clients get nervous. They potentially blame you for their losses, even though the global economy is a broad economy with many vulnerabilities. 

So how can clients be retained when the bear market lumbers in? It’s quite simple actually – building community with your clients.

Here are 3 quick ways to do just that

Idea #1: Establishing relationships with your clients that exist outside of your office can look like just about anything: from events like golf outings, craft parties, renting out a family skate rink for the night, to little things like a monthly community newsletter. Big community-building events and small community-building can bring about a variety of benefits for both you and your clients. Not only do these events bring about trusting relationships between you and your clients that will help with retention through the ups and downs of the global economy, but your clients might meet some great new friends or people that they enjoy seeing at regular events. Most importantly, they can also help you, as a financial advisor, better know and understand your clients. This knowledge and understanding will make for better informed financial decisions being made on a client’s behalf. This type of relationship also allows for more general communication throughout the year. This is especially important during tough times when a client needs to feel like they can ask their Financial Advisor questions and has trust in their advisor.  

Idea #2: Another key point about community building is retention and referrals. If you are effectively communicating with your clients, this greatly increases the chances of a client recommending you to a friend or family member. We understand referrals can be difficult to obtain in this industry, but if you have a relationship with a client that feels comfortable to email or call you, enjoys your events, trusts your other employees, those referrals will naturally happen and the retention is likely higher.  Of course, we understand that ultimately they are worried about their investments, but that’s why that relationship and effective communication is key, especially during times like we are experiencing with COVID-19.  

Idea #3: It is also important to think of your client’s beneficiaries.  Do you have a beneficiary program set up as another source for building your community? Beneficiaries don’t just stick with a financial advisor because that’s what their parents did, in fact, it’s quite the opposite.  

Community building is not a quick fix in an economic crisis but is likely to save clients down the line when the next big dip comes along and likely to increase your retention. It’s an investment that will pay back in full and then some if you pursue a community with your clients warmly and intentionally.

If you have questions or would like more information, please schedule a complimentary marketing check-up with Spotted Monkey Marketing.

There are many avenues, but only one spot.


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