The 12/4/2 model of monthly client meetings with quarterly reviews and of those four reviews two in person, is part of the Supernova Standard. Advisors are sometimes concerned that their clients won’t want to meet once a month. A client might push back because he/she thinks this is going to be a sales call. Or they may not see their advisor as an integral part of their life planning. It is important that the advisor reassures their client that this is not a sales call. The advisor can say “This is a way for me to get to know you better and have conversations that will determine risk tolerance, goals and lifestyle choices. “
The benefit to the advisor of meeting once a month with clients is to prevent clients from leaving your practice in between quarterly calls. We have determined that monthly is what the client really wants.
What is in it for the clients? Once a month will give you an accurate temperature of where the client is regarding the relationship. Just yesterday I was talking to a wealthy high profile client who said he was thinking about changing financial advisors. My guess is his advisor has no idea he is thinking about changing. This would be millions of dollars moved. Why? Because he didn’t believe his advisor was giving him investment advice that fitted into his current situation. What is your defense against a client randomly calling you one day and saying “hey, I am moving my account. I feel like I have outgrown you?” It’s that monthly call.
In this case, the client is thinking about moving to a team that has a very sophisticated Supernova approach to the business as well as a great investment strategy.
Don’t think just because you have been with your clients for a long time that you are safe. Supernova 12/4/2 keeps you safer than you are with random calls or quarterly calls. (Random calls are not any more value than quarterly calls because the client doesn’t value them.) Clients value set calls with an agenda in advance and the opportunity to ask questions. This is an advantage because monthly contact causes the financial advisor to be more attuned to what the client’s interests are and what is happening to their lives and then adjusting the investment strategy accordingly.
There are all kinds of things that can affect a person’s attitude about their investments. For example, a divorce or illness in the family or any other kind of crises is a time for you to be involved and consistently measuring their risk tolerance. If you are not connected to that you are in trouble as their advisor. If they haven’t contacted you, shared these things with you, then you aren’t connected. Monthly contact keeps you connected.
Performance wise its very important you be in touch with the client monthly to keep them calm and not make errors in terms of selling or buying. They will have better performance by monthly contact. You are also saying ‘I am limiting the number of clients I have.’ That makes you more exclusive and more desireable in the client’s eyes and will also give them better performance. A regular appointment with an agenda and confirmation letter will make the client feel more important and you will feel more professional.