Pitfalls that make you lose clients – Part 1

01 May 2021 Myra Knoesen

Clients tend to do business with people who care about them and go the extra mile. That type of treatment makes them feel important, and they come to rely on businesses they know they can trust to have their needs and interests at heart. 

On the other hand, businesses need to understand how customers feel about their institutions, why customers select and defect from institutions, reasons for customer churn and customers’ preferred communication channels. 

Essentially, at the core of every business is the client. Financial advisers spend time, hours and effort in finding good clients and prospects that will generate a long-term stream of revenue for their business. 

While there are countless tips and expert advice on how to attract clients, much less has been said about how not to lose them. Keeping clients for life can be every bit as challenging as finding them. 

Navigating this difficult industry

Justin Kuepper, an experienced active trader and personal retirement accounts manager who independently builds and manages financial portals said financial advisers operate in a notoriously difficult industry. 

“Clients have a high emotional investment in their nest eggs, while volatile market swings can create difficult situations. The most successful financial advisers know that open and professional communication is key, but amateurs can quickly fall into common traps that lead to client attrition,” he continued. 

Kuepper said it is crucial that advisers are able to spot and avoid common pitfalls otherwise, they will lose clients.

In part two Kuepper provides a list of pitfalls that he believes is how financial advisers lose clients.


Bookmark and Share


Quick Polls


Financial behaviour experts suggest that today’s risk modelling methodologies ignore your client’s emotional ability / behavioural capacity. What are your thoughts on spicing up risk profiling tools to make allowance for your client’s financial behaviours


[a] Bring it on; my client’s make too many irrational financial decisions
[b] Existing risk profiling tools are adequate
[c] Risk profiling tools should be based on the model / rational client
[d] The perfect risk profiling tool is science fiction
fanews magazine
FAnews April 2021 Get the latest issue of FAnews

This month's headlines

Randsomware attacks... SA businesses' biggest risk
Know the difference - compliance vs ethics
Better business by virtue of Beethoven
The future of vaccines
Harmonisation of retirement funds
Call centres and the maze of auto-prompts
The next 18 to 24 months are going to be tough
Subscribe now