The importance of understanding who your clients are

By Ryan Smith on June 4, 2018

Make a connection for increased business growth.

Within the financial services sector, it is worth taking the time to understand your clients, both as people and in terms of the financial guidance that they need. Not only will this allow you to offer your clients a much better service but also mark your business as one that deals with people in a positive manner.

For many financial advisers, the main question is just how to get to know your clients better. Knowing that you should do it is one thing, but doing it is another.

A great tip to start with is to get to know your clients as people, right from your first meeting. Find out about their lives and their personal situations as well as their financial concerns. If, for example, they tell you about their grandchildren when chatting, then you know that they may be interested in setting up a trust fund when it comes time to offer advice.

Many financial advisers will also use a “Know Your Clients” form when first meeting with people. This form gives a general overview of your clients and what they are looking for from you. It is a very useful tool to have when you are on your way to subsequent client meetings.

Why is it key to understand your clients?

As a financial services provider, your relationships with your clients are crucial. To effectively build the kind of relationship that will help you both, you must understand what makes each person tick. Here are a few reasons why this makes perfect sense:

  • Tailored advice – When clients come to you for advice, they want to get specific information that you can tailor to their individual needs. By taking the time during your first meeting and moving forward to understand your clients, you can make good relationships possible. Not understanding your clients will see you waste time and look foolish offering advice on products that they do not want.
  • Long-term business with clients – If your clients see you as a financial adviser who really deals with people on a personal level, then they will be much more likely to stay with you. This is great for naturally building a base of loyal, long-term customers to help make your business a success.
  • Increased brand reputation – Reputation is everything when offering financial advice to people. If you have a poor brand image based on not taking the time to understand your clients fully, then people will not come to you when choosing a financial advisor nor stay with you for long.

Although so much of working in the financial services sector is based on facts and figures, human interactions are at its heart. The key to driving business growth as you progress is harnessing the power of these human interactions. Make the effort to know your clients as people, and you will be able to figure out the best service to give them.

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