How To Get Business From Inactive Clients

Every advisor who has been in business for some time would have a set of inactive clients, who invested several months (or years) back and are dormant since. Such inactive accounts offer several opportunities that can be tapped. Of course, this is easier said than done. Yet, it must be done.

Through persistent efforts, inactive investors can indeed be drawn into a regular investment regime. The first step is to identify the customers who have not been in touch for quite some time (define this as 3 months, 6 months, 12 months and so on…).

List down their existing investments, financial plans, risk profiles – these will be your conversation starters. Next, identify the best mode to reach them. Since you have not been in touch, impersonal communication like emails, SMS or WhatsApp is not likely to evoke a response. Reaching out to them on call or a scheduled personal visit is an ideal way to break ice.

Ways to Re-Connect

Use their existing portfolio and account statements to start your discussions. Apprise them about the performance of their investments. For example, there might be a mutual fund portfolio where a fund has outperformed and needs to be switched to safer avenues, or some funds might warrant an immediate ‘sell’.

Retail clients also need to be reminded about key milestones such IPOs, NFOs, Corporate FDs (these are the best reasons to regularly stay in touch), and institutional investors might need timely advice to hedge against upcoming trends and fluctuations in currencies or interest rates to name a few.

Build on your existing knowledge about their financial preferences and risk appetite and introduce suitable products. Seek information about their current investments and remember that their financial outlook might have changed since you last met them.

Map the Life Events

Advisors play a vital role in educating clients. Conversing with them and taking genuine interest in their life events helps you find gaps in their financial plans. Life events are a great opportunity to restart a dialogue with inactive clients. Old financial plans, customer database, and your own knowledge can help you map the upcoming or ensuing life events of the clients.

Help your clients identify and understand their financial needs. For example, the birth of a child is the right time to start a mutual fund SIP for building a corpus for the child’s education. Similarly, an addition in a family could warrant a bigger home; this could be an opportunity to recommend a home loan.

Advisors should be gentle in their suggestions and should not interfere in the client’s life. Your approach should be to educate them, rather than to pitch for products.

Out Of Sight, Out Of Mind

Emails and newsletters are a great strategy to passively connect with all your clients and stay in touch. Interesting subject lines and emails with useful information can keep them engaged. For example, communication about important dates like those for filing returns, saving taxes, paying premiums/ EMIs, etc., can help.

Clients like to do their own research before they commit to an investment. Hence, your job should be to offer those insights. Investment tips, blogs, strategies, outlooks, and insights build credibility, and position you as an expert and a thought leader in your domain.

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