Although this profession began as investment-advice forward, it may not come as shock that over the past two decades clients have come to advisors for much more.

As this year continues to surprise with unprecedented market moves, an evolving pandemic, civil unrest and deep implications for how we live and do business, client engagement has understandably skyrocketed. Given this tumultuous backdrop, it also makes sense that advisors are experiencing a wave of demand for something different than your technical expertise: empathy.

Counterintuitive as it may sound, advisors need to allocate less time to investment advice and more time to relationship management.

What Do Clients Want?
A human touch and personal connection with clients is now a key differentiator. Access to you is now front and center. So, what are clients looking for in their relationships with advisors, and how can you meet and exceed expectations?

Americans are experiencing the highest levels of stress and anxiety since the Great Recession of 2008–2009, with 53 million more people suffering significant worry on any given day this spring than in the summer of 2019. On top of that, 82% of American investors expect the pandemic to have an impact on their lives and legacies for years to come, while 54% of wealthy individuals are worried they may not have any wealth to pass on to the next generation.

In short, clients are acutely stressed. Emotion drives as much as 70% of customer behavior, which helps explain how the current anxiety surge correlates to soaring demand for personalized, holistic wealth-management services—and a desire for increased access to an advisor.

Clients come to RIAs with financial questions and goals but, more importantly, they also come for support. Advisors are increasingly called upon to listen, show understanding and concern, and provide a steady, trustworthy presence to help ease the anxiety caused by uncertain times.

The Elephant In The Room
Emotion is the secret sauce in all your client interactions—and, as we’ll see below, even in your investment returns. Meeting clients where they are and addressing the emotional subtext of their concerns is essential from both a client retention and performance standpoint.

Even before 2020’s series of unfortunate events, research made clear that emotional decision-making is one of the greatest risks for investors—especially the temptation to time the market and chase performance. Of course, many of us don’t consciously realize when emotions are driving our behavior, which is why it’s critical that advisors pay special attention to building relationships.

When you lay the foundation of a strong connection and build trust with clients from the start, this provides a platform for honest and empathetic conversations that allow you to show up for your clients in important ways. Acknowledging underlying thoughts and emotions sets clients at ease and helps build trust, laying the groundwork for successful behavioral coaching.

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