Best Practices for Building a Client Bond

Make marketing, client retention and investment strategies part of your practice's mission statement and those three tenets should translate into quality client relationships, according to Carl Stuart, a Raymond James independent contractor and president of Carl Stuart Investment Advisor Inc. in Austin, Texas.

Applying those three values helps separate financial advisors from the competition, says  veteran advisor Stuart, who will share insights from his 32 years in the business during one of Tuesday's Top Advisor sessions in Las Vegas.

"How you build and sustain relationships is very fundamental," says Stuart. "If you're a therapist, you listen and ask questions. That's what we're supposed to do."

Advisors, he says, should also strive to be the best-known financial professional in their respective markets, while also being deeply involved in, and passionate about, their communities and the community organizations in which they are involved. An advisor could become the financial director of a local non-profit, for example.

"Typically, there are prospective clients on the [organization's] committee [or board]," observes Stuart. "Because our business is finance, becoming the financial director is a very significant component." And hopefully, a mutually beneficial one, too. The organization benefits from the advisor's financial expertise, while the advisor benefits by making new contacts.

Client retention also ranks high on Stuart's list of priorities as an advisor. "It's largely about setting client expectations," he explains. "Ask them what a healthy, happy client relationship is. We also send a newsletter with three components: financial updates, investment planning and personal. And it's written in an active voice."

For advisors, finding a voice that is personal and resonant is crucial, Stuart maintains. "People are thirsty for honest, objective information about attaining financial independence and investment planning. They're skeptical about financial advisors because of the negative stories about Madoff and others. Now it's about trustworthiness."

The third component of a strong client relationship is investment strategy. In that regard, experience serves an advisor well, says Stuart. "I learned the key to keeping clients is not to lose most of them in bad times. They're interested in investment returns, but that is secondary to the trustworthiness of the advisor."

He's also learned to acknowledge that he can't expect to be all things to all clients. "I explain to people I may not be their guy if they want to trade options or buy annuities," Stuart says. "And I treat every caller and client with respect."

Attend Stuart's Top Advisor Session (Tuesday, starting at 2:10 p.m. in Lando 01 – 03) to hear him dive deeper into the dynamics of relationship-building.