6 Ways to Boost Client Retention and Satisfaction for Financial Advisors

Clients are the lifeblood of an independent financial advisor’s business. But unlike some service businesses, your success doesn’t depend on a high volume of incoming clients or a revolving door of short-term engagements. Your business growth depends on developing strong, long-term relationships with satisfied clients who are happy to refer you to their friends and family.

You’re in the relationship business.

Invest time and resources into nurturing your relationships with existing clients. Client appreciation efforts are a form of relationship marketing that retains clients and cultivates high client satisfaction.

Here are six relationship-marketing tips advisors can use to celebrate clients.

1. Host client appreciation events

Client appreciation events are a time-tested way for financial advisors to celebrate clients and strengthen relationships. Treating clients to something like a fine dining experience, wine tasting, family picnic, or sporting event rewards their loyalty and provides an opportunity for you to get to know them better in a social setting outside of your regular business meetings.

And when you host events, encourage clients to bring guests. This bolsters the sense of community you’re building among your client base and allows you to connect with more potential clients. Clients will talk about it with friends and colleagues. “My advisor threw a dinner party last night…” is likely to turn into a conversation about you and a possible referral.

2. Send anniversary “thank-you” cards

As each year passes, remind clients that hiring you was the right decision. Just like you mark the anniversary of other happy occasions in your life, mark the anniversary of their relationship with your firm.

A card with a simple message thanking them for continuing to trust you is a nice reminder that they are in caring hands. Some advisors send branded gifts to mark milestones, such as an engraved pen or paperweight for five or 10 years of loyalty with the firm.

Include a personal note that references the progress you’ve made in the past year or your progress since your initial meeting. The idea is to reinforce the sense that they are in the right relationship, that you are growing together, and that you have their long-term goals and interests in mind.

3. Mail birthday cards

A client’s birthday is yet another occasion to remind them that you’re there and that you care. In the past, sending a birthday card through the post meant that it was likely to be overlooked in a pile of junk mail. Now that most people relegate happy birthday wishes to a quick Facebook post, your card may be the only one they receive. This simple, old-fashioned, and inexpensive gesture can be a nice surprise when they open their mailbox.

If your budget allows, sending a thoughtful gift is even better. This is where your customer relationship management (CRM) tool comes in handy. Using it to make note of their favorite hobbies, interests, and items they collect allows you to send a gift that you know they’ll enjoy – perhaps a favorite wine, charcuterie gift basket, golf gloves, or a spa package.

4. Recognize life events

Acknowledge special events in your clients’ lives with a gift that shows you’re thinking about them and their family. This is why it’s important to pay attention, take notes in your CRM, and have a system that makes it easy for you to act on your good intentions.

Is their child getting married? Are they welcoming a new grandchild? Is there a new graduate in the family? Are they closing on a new home? Did they lose a parent? Have they finally turned in their notice for retirement?

Sending a card, flowers, or a gift will go a long way in gaining favor with the family and reminding clients that you value your relationship.

5. Hold workshops and educational events

Clients come to you because they recognize and appreciate your knowledge and expertise. Holding workshops to dive deeply into topics they find useful will reinforce your standing as a resource and demonstrate that you care about their needs.

Because they see you as a credible source, they are also likely to value your relationships with other professionals that offer related services, such as accountants, estate attorneys, insurance brokers, and real estate professionals. Inviting clients to guest speaker events is another opportunity to show that you care about their goals while also building stronger relationships with centers of influence that can help your business grow through referrals.

6. Give generously

One of the best ways to show clients that you care is to make charitable donations to the causes and organizations that matter most to them or to support their charitable activities. This lets them know you are someone they can count on and demonstrates a values alignment that can help strengthen your relationship.

Are they a board member for a non-profit? Is their child’s school hosting a fundraiser? Do they support a medical research organization because they lost a loved one to a disease? Are they an avid environmentalist or animal lover? Do they volunteer for a literacy organization, a domestic violence shelter, or a food pantry? Find out how you can give a charitable gift or become an annual donor on their behalf as a holiday gift.

Celebrating clients always pays off

Because I specialize in working with financial advisors, I always encourage my clients to celebrate their clients by incorporating client appreciation activities into their marketing strategy. I also remind them to keep documentation of a gift's monetary value for compliance purposes. A little goes a long way, and the more effort you invest in relationship marketing, the better. It pays off in boosting your client retention and word-of-mouth marketing, and it’s also the right thing to do. Without happy clients, your business will not thrive, and serving satisfied clients means having a business you’re proud of, and that you enjoy running.