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Growing Your Firm During a Volatile Market

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The US market is filled with uncertainty right now, but that doesn't mean you can't grow your practice and profits. Here, a financial planning expert discusses how to achieve success in that sector.

Aug 17th 2022
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Market volatility is inevitable. But even though markets have always had their ups and downs, new periods of volatility often lead to uncertainty and anxiety. While it may not seem like it, volatility is a great time to focus on growing your advisory practice’s financial planning sector.  

But how do you get started?

Here’s how to grow your practice during times of market volatility.

How to Grow Your Firm’s Financial Planning Sector During Market Volatility

Create a Proactive Plan to Retain Existing Clients

You can’t grow your practice if you lose clients. It’s important to put your existing clients first and ensure you provide the high level of service they expect.

Market volatility can make clients nervous. Many clients will need reassurance and perspective at this time, or they may consider pulling out of the market.

Take the time to create a proactive plan now to help retain existing clients for the foreseeable future. Being proactive means:

  • Emailing clients to check in and provide reassurance about current market conditions.
  • Scheduling calls. It’s better to call than to be called by clients. Reach out to discuss concerns and touch base.
  • Revisiting financial plans and updating them as needed to match the client’s needs and risk appetite.

Taking a proactive approach to communication and revisiting financial plans will show your existing clients that they are valued. When clients feel valued, they’ll be more inclined to stick around, even during tough times. 

Revisit Lost Opportunities

When markets are volatile, revisit lost opportunities. You may find that you are able to win over prospects that ultimately went in a different direction or decided it wasn’t the right time for financial planning or advisory services.

During times of market volatility, many people feel anxious and unsure of their next steps. If their advisors aren’t being proactive, they may be ready for a change. If you reach out and demonstrate your value, you may win them over. 

Other prospects may not have made any changes and could benefit from your financial planning services. They may be more open to considering your services now that the markets are volatile and financial planning is more complex.

Revisiting lost opportunities is a great way to help grow your firm during these challenging times. You may win some prospects over and add to your client base. Even those you don’t win will remember that you reached out during a difficult time and may consider your services in the future.

Focus on Providing Value

In times of market volatility, it’s even more important to focus on providing value. Doing so will not only improve the client experience but can also result in growth for your financial planning practice. 

Here are some ideas:

  • Reconnect with clients who had low basis assets to consider rebalancing or repositioning assets.
  • Contact clients with employer retirement plans to review allocations. Over time and as life changes, asset allocations should also change. Clients who are approaching retirement may need to readjust to reduce risk.
  • Contact clients who have some assets held with other advisors. Review their overall allocation and provide recommendations or advice. You may win new assets.

Demonstrating value is a great way not only to retain existing clients, but to attract new ones or gain more business from your existing clients.

Train Your Team to Improve the Client Experience

When markets are volatile, make sure that your team is on-point and ready to help clients in any way possible. Train your team to listen and identify opportunities to provide a Ritz Carlton experience by:

  • Helping your existing clients. Some clients simply need direction or advice on the next steps to take. Help them reach their goals.
  • Sensing if the client is frustrated. Make sure your team knows how to spot signs of frustration. Be proactive about calming and reassuring these clients.
  • Reassuring clients of long-term plans. Market volatility happens. Long-term plans account for this, and if clients stay the course, they should reach their goals.
  • Being empathetic to individual client struggles. Help them find solutions to reach their goals and listen to their needs. 

Your team will play an essential part in your growth, so make sure that they are ready and able to provide an excellent experience for clients and prospects.

If You Don’t Currently Offer These Services, Now is the Time to Start! 

Now is the perfect time to start if you’re not already offering these services. Your clients need these services, and they already trust you as an advisor. These services not only benefit your own practice but your clients as well.

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