How to serve and build lasting relationships with HNW clients
Start with a few open-ended questions, writes Citi's Samuel Vallières, then always keep trust, credibility and preparedness in mind
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Working with high-net-worth individuals and families is an exciting and challenging opportunity. To effectively serve these clients and build lasting relationships, you need to keep a few key strategies in mind.
Build trust and credibility
First and foremost, trust is the foundation of any successful relationship with HNW clients. They need to have full confidence in your abilities and dedication to their best interests. So, be transparent, honest, and straightforward in your communications. Tell things as they are, without ambiguity.
Avoid using jargon and unnecessary complexities when explaining financial concepts. Instead, break things down into easily understandable terms. This approach fosters open communication, reinforces your commitment to acting in their best interests and ensures your clients feel comfortable and well-informed throughout the advisory process.
Credibility is another crucial aspect. Continuously showcase your expertise and knowledge, not just through your experience but also by pursuing relevant professional titles in your area of expertise or courses in other related fields, expanding your scope of knowledge. Attend conferences and read books while taking notes of relevant information that you can apply in your practice. If you have an accounting background, consider investment-related classes. For those with technical expertise, focus on soft skills like communication or negotiation. Expanding your skill set enhances your expertise and interactions with clients, providing a comprehensive advisory experience.
Staying open to learning ensures adaptability in serving HNW clients. Additionally, taking a more active approach such as teaching, writing articles, speaking at events and engaging with professional associations can enhance your reputation and foster trust with clients. By sharing your expertise, you not only establish yourself as a thought leader but also showcase your dedication to ongoing learning and development, which builds confidence among clients in choosing you as their advisor.
Collaborate and work as a team
Recognize that HNW clients often have complex financial situations. To provide them with the best possible service, collaborate with your colleagues and internal team of experts. If necessary, reach out to well-established centres of influence that you’ve built relationships with over the years.
Consider also direct meetings with the client’s own advisors, fostering a harmonized approach that ensures a cohesive integration of strategies. This collaborative approach demonstrates your commitment to providing holistic solutions and empowers your clients to achieve their financial goals with confidence.
Engage in meaningful conversations
To truly connect with your clients and provide personalized advice, engage in meaningful conversations by asking open-ended questions. One of my go-to questions to start is simply, “Tell me about yourself.” It’s fascinating to see where clients take it – they might talk about their family, business or something entirely unexpected.
By actively listening to their story, with a conversational approach, you not only uncover their goals and objectives, but also forge a stronger bond with them. It may reveal potential behavioral biases that can influence how you communicate and present information.
Taking a more active approach such as teaching, writing articles, speaking at events and engaging with professional associations can enhance your reputation and foster trust with clients.
Samuel Vallières
Another powerful question is, “What are the most important things you want to accomplish with your wealth?” By asking this, you can uncover their motivations and tailor your advice accordingly.
Effective communication and education play a pivotal role in empowering HNW clients to make well- informed decisions. Educate them using relatable stories and examples to simplify complex concepts.
For instance, if a client plays a sport, you can draw relevant analogies to help them better understand investment strategies. By incorporating familiar contexts, you ensure they have a clear understanding of the rationale behind your recommendations.
Collaborate with different family members to foster open communication and alignment of financial goals. Consider involving the younger generation early on; it is essential to teach them about finances and long-term planning from the start. By combining meaningful conversations and comprehensive education, you establish a powerful foundation for guiding your clients toward financial success.
Preparation is key for complex portfolios
Approach each client interaction well-prepared and organized. Take the time to draft a clear agenda with specific objectives, and involve any relevant colleagues if needed. Staying organized during the meeting is equally crucial – take detailed notes to keep track of essential details, client preferences and long-term goals.
Given the potentially numerous family members and financial matters spanning many years, staying organized is key. Anticipate potential interests, questions or concerns that your clients may have. This level of preparation demonstrates your dedication to understanding their unique needs, and most importantly it will allow you to provide personalized advice that aligns with their goals.
In conclusion, by prioritizing trust, expertise, collaboration, a comprehensive discovery process, education and preparation, advisors can successfully serve and build lasting relationships with HNW clients.
Samuel Vallières is an Investment Counselor at Citi in Montreal, where he is responsible for managing assets and providing comprehensive investment strategies for ultra-high-net-worth individuals. He leverages Citi’s global network spanning more than 160 countries to provide institutional-level product and services to his clients. Additionally, he serves as an adjunct professor at the John Molson Business School at Concordia University, teaching in their MBA in Investment Management program. Samuel holds the Chartered Financial Analyst (CFA), Financial Planner (F. Pl.) and Chartered Investment Manager (CIM) designations. He graduated with a bachelor’s degree in Business Administration, Finance (BAA) and a master’s degree in taxation (MTax).
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