With Stocks Plunging 3% So Far Today, What Do You Do Now?

Thursday, August 04, 2011 12:56
With Stocks Plunging 3% So Far Today, What Do You Do Now?

Tags: client communications | client education | investor behavior | marketing | prospecting


With the Dow Jones Industrial plunging as much as 373 points earlier today, now is the time for you to focus on client retention and marketing. Here are seven ideas to help.
1.     Communicate. Advisors who communicate with clients now will come out ahead. Reminding clients that they have a long-term strategic plan is crucial to avoid silly human behavior, emotional overreaction to bad news, and decisions about long-term issues that are based on short-term thinking.  
History Not Repeating. Remind clients of the dark days of October 2008. Wikipedia, the St Louis Federal Reserve,  Fox Business News have timelines about the crisis. They tell a story showing that the economic events of 2007 and 2008 are different from what is happening now.
Fight Instinct. After the economic crisis, the market rebounded. Investors who stayed the course fared better than those who panicked and sold amid the bad news. This happens in every economic cycle.  See Fritz Meyer’s webinars.
Blog or Email Daily. Find an article at the close of the markets daily from a highly reputable source that is consistent with your point of view and email it or make it a blog entry. Even if it is just five or 10 sentences, clients need to hear from you now.
Webinars. Conduct a webinar once a week or every other week going over your daily emails and blog entries. While it is just recapping information you have already sent clients, some will prefer to consume this information only that way. Post the replays on your website. If compliance prevents you from making it public, as your BD if you can post it behind a password protected page on your website.
Marketing Opportunity. Fear is motivating investors to look for help. That is an opportunity to find new clients. In addition to stepping up client retention efforts, now is the time to find new clients.
Stop And Think. Every morning, before you start answering the phones, writing emails, and checking the markets, take 15 or 30 minutes to think about what you are going to do that day. Connect your activities to your long-term strategic goals.   



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Comments (4)

All great advice. I regularly send email blasts to clients especially during times like this and then post them to my website as blog entries. And I can tell you that I get replies back thanking me for taking the time to do an explainer. Clients only want to know you are there and that you are on top of things, monitoring the situation and communicating with them. Even if it only to tell them what is happening,something they don't get from the 24 hour news cycle, they appreciate it immensely. My clients often pass my emails on to friends. A few print them out and carry them with them so that they can share them with people they meet. Yes, it also good marketing. But it is mostly premptive damage control. If a client is really panicing and they get a calming email from you, they will call and isn't that what we want?
mitchellkeil , August 04, 2011
It may be a good time to remind our INVESTORS that stocks are 10% cheaper than they were a week or two ago. I dunno, but maybe, just maybe, this is a good buying opportunity for those with cash to invest?
vguettlein , August 04, 2011
I think its interesting that today the email from A4A has a lead article about the way Fidelity blew it in not communicating with clients about the disaster that befell the markets yesterday and how Vanguard and Schwab shined in the eyes of clients by communicating with them. I would have thought that Andy's comments above would have at least generated some commentary from the advisors who read A4A. Should we interpert the lack of comments as an indication that too many advisors think like Fidelity? I would have appreciated a dialog about what the advisory community is doing in addressing this situation. Ideas are always helpful. Who knows you might read something that helps saves a client.
mitchellkeil , August 05, 2011
The article above already has more than 500 hits. But advisors are scared, and many are also unused to sharing ideas in an open forum like this. As we build confidence and trust in what we're doing here at A4A, we'll see more participation. We're now getting more than 10,000 unique visitors a month and the addition of a large institution in a few weeks should spike that considerably. I've learned patience.
agluck , August 05, 2011

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