How to Attract and Retain Clients

  1. advisory-message

Artificial Intelligence

I just discovered a great new CRM system based on Artificial Intelligence algorithms and it basically does all of your work at prospecting for new clients and maintaining relationships with your existing clients.

Once you load in your prospect’s or client’s information and populate as many of the fields as you can – their interests, children, schools attended, etc. – the system searches the internet and draws in more data from the person’s social media presence and any other sites on which they are mentioned. Then, as you enter data about each new interaction with the person, the system “learns” the person using emotional intelligence parameters and suggests appropriate language to use when next you interact.

It also suggests appropriate gifts for every member of the person’s family so you can look like a star who remembers everything and cares deeply. Naturally, the prospect or client will then give you all their money to manage and will stay with you through any periods of negative market volatility.

Just Kidding

No…not really. Even if such a system did exist, and it very well may one day soon, I don’t think I would use it because it seems a bit cold and manipulative. After 22 years in the financial business, I’ve come to believe that client attraction and retention is a result of two primary things:

  1. Consistently good performance results; and
  2. Excellent administration of the client’s accounts.

The First Stage

When I first started Crystal Wealth, my proprietary technical analysis system was generating returns in excess of 30% consistently year in and year out and yet, some clients chose to go elsewhere because of administrative errors.

When markets changed and my system stopped working as well, some clients left because their performance was more in line with other investment products (mediocre), no matter how well I administered their account.

The Force

Lately, we’ve been attracting clients due to our consistently positive, but not rockin’ your world, performance of our Crystal Wealth alternative income strategies. More often than not, the client feels badly about leaving their other advisor, even though they may have lost money for a number of years or maybe broken even. Inertia and caring for others are strong and powerful forces in our human nature, sometimes to our detriment.

The Blame Game

Finding someone or thing on which to pin the blame for bad market performance (or administration) is not going to convince your client to stay with you. I believe it is your professional duty to make your clients money and earn your fees and if you can’t do that with predictability using traditional market strategies, it’s probably time to explore alternative strategies.

About the Author

Clayton Smith

Founder and CEO of Crystal Wealth, Clayton Smith, CAIA, is known for his hunger to provide a limitless lifestyle to those around him. Clayton embodies the three main elements to a fulfilling life and successful business: focus, integrity and discipline.

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