Everyone loses clients. It’s an upsetting experience. If your manager was dissatisfied with you, this would be reflected in your performance review. You would be put on probation. Put another way, you would get warnings and the opportunity to improve. Clients vote with their feet. They disappear.
We are great at rationalizing. They weren’t a good client. They weren’t a good fit. You were going to ask they be reassigned anyway. Big clients don’t always jump ship immediately. The relationship often hollows out gradually. The revenue declines. By the time they leave, they are a much smaller, inactive relationship. The big client left long ago, we just don’t admit it.
Eleven Reasons Why Clients Leave
People don’t simply leave good situations. They often have the place where they will land already setup before they pull the ripcord and parachute out.
1. Lack of communication. This is the big one. The client doesn’t feel you are paying attention because you aren’t getting in touch. You aren’t staying on their radar. My wife and I have three insurance agents. One, for an out of state property, never gets in touch except via newsletter or renewal notices. Our health insurance agent promptly responds to inquiries, but doesn’t reach out. The third is in touch regularly, reviews our coverage and attempts to reduce our premiums when possible.
Proactive: Find the channel that works best for them. When you get in touch, remind them this is a monthly call or mention the last time you spoke.
2. They can’t get you on the phone. This has several meanings. At it’s most basic, the firm’s automated system makes reaching a live representative really hard. Try calling the power or cable company sometime. On a more personal level, they call your office and get your assistant or team member, but can never get their call directly to you.
Proactive: Some people want to speak with the person at the top. Accommodate them, while explaining this might not always happen immediately and different team members handle certain tasks. That might be the quickest way to get action.
3. Out for yourself. Fiduciary relationship is a frequently used expression. It basically means the advisor works on the client’s behalf. There are situations where the client thinks their advisor is making recommendations based on how much money they will make, not what’s the best fit for the client.
Proactive: When you make a recommendation, do you explain why it’s a good fit or how it’s in their best interests? You should.
4. There was an issue. Maybe there was a dispute involving money. The firm didn’t see things their way. Perhaps lawyers were involved. They viewed you as an agent of the firm, not an advisor acting in their best interests.
Proactive: Lets assume this wasn’t because of an error on your part. Be upfront if the firm says you must limit your contact. Remind them how you have consistently acted in their best interests. They will hopefully realize it’s an issue between them and the firm, yet you still might lose the client.
5. They think they outgrew you. They were a small account once, back when they were starting their own business. Now they are wildly successful with plenty of money and complicated needs. They think your knowledge and capabilities are limited. This is an idea often planted by the competitor prospecting them.
Proactive: Periodically remind them about the capabilities of the firm. They are your extended team.
6. Confidentiality. You keep your mouth shut, but that’s not enough for some clients. They think others in the office talk. They are concerned about being spotlighted as a prospect for local nonprofits. They might even think simply walking through the door of your office puts them on the radar. They move their account to another town where they are anonymous.
Proactive: Remind them you are bound by confidentiality. Hopefully your office is in a multi-story building. They could be visiting any of a dozen firms.
7. They were an account reassignment. They had a great relationship with their former advisor. They aren’t around anymore. They might have retired. Maybe they joined a competitor. You were given their account. They feel they weren’t consulted or cultivated, so they are forming their own succession plan.
Proactive: Although they are far better than a warm lead, be aware you need to win their business. Give them the service and attention you give your best clients. That’s likely what they got before. Emphasize they are a valued client of the firm.