Guest Blog: How to Communicate With Clients During a Down Market

By Gretchen Halpin, Beyond AUM

A down market can be a stressful time for advisors and their clients. For financial advisors, it is important to maintain communication with clients during this time and ensure that they are kept up-to-date on the latest market news. The noise from the media is blaring all day, every day. Showing that you’re in tune with the market assures your client that you’ve got it handled for them. Let’s discuss some tips for communicating with clients during a down market.

Acknowledge Your Client’s Feelings

First and foremost, financial advisors should keep in mind that their clients are likely feeling just as anxious as they are about the current market conditions. It is important to be understanding and patient with clients during this time. Acknowledging their feelings is the most important thing an advisor can do. After all, you’re handling their financial future. This is no small thing.

Remind Them of the Long-Term Plan

Sure, you’ve demonstrated and discussed your investment philosophy many times, but when you’re in the thick of it, reminding your client about the long-term plan you set forth helps your clients feel confident that there is a plan in place.

Stick With the Facts

Advisors should also take care to avoid sounding too optimistic or pessimistic in their communications. Clients are smart enough to know that there is only so much within your control. Stick with the facts. Put them into context. Be available for questions.

Focus On Providing Value

Another key tip is to focus on providing value to clients. This can be done by sharing relevant articles, holding webinars, or sending out monthly newsletters. Advisors should make an effort to keep their clients informed and engaged during a down market. Share ideas on how to use this down market to their advantage – tax-loss harvesting, as an example.

Take Care of Yourself

Financial advisors should remember to take care of themselves during a down market. This is easier said than done, but it’s important to avoid burnout. Advisors need to be able to maintain their energy and enthusiasm for their clients. When you’re taking care of yourself, it shows in your client interactions.

Communication is Key

Finally, financial advisors should remember that communication is key during a down market. By staying in touch with clients through email, social media, or blogs and articles and providing them with timely updates, advisors can help ease their anxiety and keep them informed.

In summary, financial advisors should keep the following tips in mind when communicating with clients during a down market:

  • Acknowledge your client’s feelings
  • Be understanding and patient
  • Demonstrate that you are in tune with current events
  • Remind them of the plan
  • Focus on providing value
  • Take care of yourself

Client experience is everything – make sure you’re giving them the best experience possible.

Do you have any other tips for financial advisors communicating with clients during a down market? Get in touch and let us know!

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