Page 37 - Investment Advisor October 2022
P. 37
THE FAST TRACK
By Angie Herbers
3 Steps to Transitioning Clients to
Other Advisors
With advisors in short supply, firms must serve more clients
with the human resources they have. Here’s how.
ow do we transition cli- How to effectively transition clients
ents?” That’s a question without losing them?
“HHerbers & Co. is hearing Here are some guidelines to help
more and more from financial advisors. transition clients.
Successfully moving a client from one
advisor to another doesn’t have to be 1. TAKE IT SLOW
complicated. But before I get into that, The first rule of client transitions is to
let’s look at why the topic of client trans- go slow. Don’t send a letter to the client
fers has become so popular. informing them that they’ll be work-
For the past decade, there’s been a ing with another advisor; that will only
perceived shortage of financial advi- create fear and uncertainty. Instead,
sor talent within the industry. Some aim to gradually establish a relationship
have argued that there’s little to be con- between the client and the new advisor.
cerned about: Capacity challenges will Many firms will begin the transition
be solved through technological inno- by having the “new” advisor at the next
Asked to name their vations. Others argue that clients need client meeting. Rather than focusing
top business challenge, human advisors to understand their on meetings, having the new advisor
emotions, and then help them pivot with
answer clients’ questions between meet-
firm after firm will confidence to facts and figures. ings often builds trust faster.
point to the difficulty of In the past couple of years, it’s If the client emails, the primary advisor
recruiting, training and become clear that we are indeed short of forwards it to their colleague. The client
hears back from the new advisor, explain-
advisors. Asked to name their top busi-
retaining talent. Amid ness challenge, firm after firm will point ing that the request was forwarded to
the human resources to the difficulty of recruiting, training them, and adding that they’re happy to
help, while explaining what’s been done
and retaining talent. Amid the human
crunch, advisory firms resources crunch, advisory firms con- in response, or what the client might do.
continue to grow. To tinue to grow. To accommodate that Likewise, an incoming phone call may
accommodate that growth, they need more advisors — who be routed to the new advisor, or the new
are in short supply.
advisor might return a call placed to the
growth, they need more Thus, organizations have been looking original one. The key here is that the new
advisors — who are in at ways to serve more clients with the advisor be perceived not as a replace-
human resources they have. And many
ment but as an added, helpful resource.
short supply. are finding that the best solution is to
transition clients from busy primary advi- 2. TRANSITION THE MEETINGS
sors to advisors who have excess capacity. Once the groundwork for the new rela-
Firms often have a hard time moving tionship has been laid through reactive
forward with client transfers, though. responding to a client email or phone
One reason is that they fear a nega- call, the next step is transitioning the cli-
tive reaction from the clients that may ent meetings. Ideally, the original advi-
threaten growth. Thus, the question: sor leads the first meeting or two, then
OCTOBER 2022 INVESTMENT ADVISOR 35
