Performing annual client reviews can be a great way for financial professionals to better connect with clients, reinforce their value and help grow their practices, recent research shows, yet some aren't making the most of this valuable opportunity.
A survey of financial professionals and clients conducted by Jackson and Greenwald Research ahead of this year's review season provided these and other insights on the value of the annual client review. The research polled 305 consumers who recently participated in a review and 305 financial professionals who recently conducted at least three reviews with clients.
The results showed that 80% of clients found annual review meetings extremely or very effective, and almost all said the sessions contributed to greater confidence in their investment decisions and reinforced their loyalty to their financial professional. On a loyalty-related note, four in five clients said the review meetings supported their willingness to make a referral.
Surprisingly though, many financial professionals report limiting the number of reviews they conduct to certain clients, which points to a significant missed opportunity, even if reviews don't take place in person. In fact, a full two thirds of clients who met virtually said their financial professional understood their emotional issues, which defies the notion virtual meetings are impersonal.
The research also provided useful information on what traits lead to a quality annual review by asking financial professionals what's important to ensure reviews live up to client expectations. Here are some of the common themes and best practices they shared:
1. Create a meeting agenda
Financial professionals consistently highlighted the importance of identifying topics to discuss before the meeting. Many suggested the agenda should be distributed to the client ahead of the meeting, which can help clients better prepare and provides them the opportunity to suggest additional topics. Half the financial professionals surveyed said they ask clients to re-state their short and long-term investment objectives at the start of an annual review meeting.
2. Communicate with the client beforehand
There was also a focus on collecting updated client information before the meeting, including tax returns, life insurance policies and other account statements. Some financial professionals reported sending clients a pre-meeting questionnaire in support of this goal.
Phil Wright, a Registered Principal and Certified Fund Specialist, is a team leader at Jackson National Life Distributors LLC.
