It’s natural for people to panic when things go wrong. Fear in the face of a threat is a reaction that’s hardwired into the human brain. What this means for you as a financial advisor is that you have to prepare to help clients in times of uncertainty. A lot of that preparation involves knowing how the human mind works in general. In addition to that general knowledge, you should understand how the mind of each individual client works. There is no complete “one size fits all” solution when clients panic. Every client is different, but there are things that you can do that should mitigate most people’s fears.
Educate your clients
Client education is an important part of keeping your clients calm. A client is less likely to panic when the stock market falls if they understand what it means for their finances. This doesn’t mean that they won’t call you with their concerns because they probably will. The difference lies in how the conversation goes. You won’t have to talk them down so you can spend more time helping them make any necessary changes.
Make yourself available
Do not turn off your phone if the news is full of stories about economic downturns and record low stock markets. You should be available to speak to your clients just as you would be on any other day. Someone who’s panicking is going to panic more if they can’t reach you after multiple attempts. Someone who’s merely concerned may start to panic if you don’t answer your calls or emails. If you’re truly unavailable, leave instructions for your clients, so they know who to turn to in the meantime. It’s better for everyone if you don’t create a situation that escalates their fear.
Reassurance goes a long way when clients panic. Some clients will come around after hearing a simple “everything will be fine”. Others will need a more in-depth explanation to feel reassured. If that’s the situation, then give them that explanation. They’re scared, and they need you to show them that they don’t have to feel that way. Beyond that, they trust you and feel that you can give advice in the context of their financial situation.
No one wants to worry about their finances, but it happens. Preparing for that moment makes a difference for your clients and your potential for success.
If you’re ready to take your success to the next level, schedule your consultation today.