Now Is the Time to Reach Out and Listen
By Martin R. Baird

WOW! The financial services industry is drastically changing before our very eyes as our country’s financial mess continues to unfold.
 
Bank of America has purchased Merrill Lynch, Barclays PLC has acquired the bulk of Lehman Brothers, the Federal Reserve has bailed out American International Group, Morgan Stanley and Goldman Sachs now have bank holding company status, J.P. Morgan Chase & Co. has purchased most of Washington Mutual and Citigroup has acquired Wachovia Banking Corp.’s banking operations.
 
My dad’s generation talked about circumstances like this – when “indestructible” businesses crumbled, crushing the people who worked for and invested in them. The days when people lost it all.
 
I’m not an economist or financial prognosticator. But I do know that people are getting more and more worried about the money they have. Not to be a broken record, but as people watch the value of their homes and investments slip south, it becomes more difficult for them to envision a bright financial future.
 
As a financial advisor, now is a critical time to measure and manage! Not measure returns and manage investments, but measure your clients’ real feelings, fears and frustrations and manage them intelligently. This is not the time to do a so-called satisfaction survey to make yourself feel good. Big-brain research clearly shows that satisfaction is fickle and that studying it is a waste of time, energy and money. Simply put, people lie. Ask them if they are satisfied and they will say yes because they think that’s what you want to hear. This was published in the Harvard Business Review, so you don’t have to take my word for it.
 
You need to measure your clients’ real mood. Don’t guess or hope. Get a handle on what they are really feeling. Are they willing to risk their most important asset, their reputation, to recommend you and your company? If not, why not? This is critical, especially in the tumultuous times we are experiencing. Merrill Lynch clients may have been satisfied in the recent past, but I’m sure they are now very concerned because one of the companies that was indestructible has crumbled. You need to ask the question and LISTEN to your clients. Listen and learn.
 
Taking a page from politics, this is a perfect time for small town hall meetings. Rally the troops and let them tell you what they see and feel. I’m not talking about seminars or veiled attempts to sell products to your clients. These need to be real opportunities to connect and share what is really on their minds and in their hearts. For those of you who are already well connected with your clients, this is an opportunity to leverage that connection. Explain why working with you yesterday was a good idea and why it is an excellent idea today.
 
This is also the time to demand more from your investment partners and broker dealer. No, not more golf balls or free lunches. Expect them to do more to help you service your clients and manage their expectations. Go to them and ask for real marketing support and other tools to help you grow your business and achieve long-term success. For example, if you don’t know how to do the research that is needed or you want to do it the best possible way with an unbiased third-party provider, ask your broker dealer or investment partners for help.
 
Sure, times are tough – real tough – but I see this as a golden opportunity for intelligent advisors to cement their relationship with their clients. If you help others through challenging times, those people just might stay with you for life. Advisors who embrace this challenge and step forward by communicating and listening to their clients will be positioned for long-term success. If you were one of my customers, I would recommend that you call all of your clients and prospects over the next five days and at least say hello or leave a voice mail.
 
As the media talks about the major financial services companies today, one often-repeated comment is that pride could have been a major factor in the fall of some of these businesses. Instead of being open to offers and opportunities, they said no. Some of those offers could have been a great deal for their clients and stockholders. Don’t let pride stand in the way of connecting with your clients or prospects. You may not like what they have to say about you or your recommendations, but that doesn’t mean you shouldn’t ask what they think.
 
I don’t know if the bottom of the financial crisis is around the corner or if there will be more bumps in the road. I don’t know if B of A’s deal is good for it and Merrill Lynch. But I do know that you need to reach out to your clients. Don’t let lack of action turn you into the next casualty of this struggle.

Martin R. Baird is chief executive officer of Robinson & Associates, Inc., a consulting company that helps financial professionals measure and manage the quality of client service and improvements to their internal operations to enhance business performance and increase revenues. He is a highly regarded speaker in the areas of marketing and client retention and development. Baird is author of “The 7 Deadly Sins of Advisor Marketing,” a book that offers easy-to-implement marketing ideas for financial professionals. He may be reached at 206-774-8856 or mbaird@raresults.com.