Let’s dive into the exciting world where professionalism meets business friendship.
One study of affluent clients demonstrated that while satisfied clients are highly loyal (98%), a low percentage (20%) provide referrals and make introductions. Engaged clients create introductions. An engaged client feels connected with both your value and with you. Over time, many of these clients become business friends.
By the term business friendship, I’m not talking about sharing deep dark secrets with each other. I’m talking about a relationship that goes beyond the core work that you do with your clients. Your meetings with them often devote 10% to business and 90% to everything else in each other’s lives.
Your high-net-worth clients of $1 million to $10 million will most likely meet with you several times per year. You probably already invite them to your client-appreciation events. Some of them invite you to their social events to which they invite other friends and family.
According to some spiffy research by the Spectrem Group, nearly half of millionaire clients consider themselves at least somewhat chummy with their financial advisor. Meanwhile, 27% keep things strictly professional.
Now, here’s a fun twist: millennial millionaires are even more inclined to see their advisor as a friend! A whopping 63% of these young money moguls consider their advisor a friend to some extent. And only a measly 5% of millennials keep things strictly professional.
On the flip side, baby boomers tend to lean towards keeping it professional, with over a third indicating a strictly no-nonsense relationship. And let’s not forget our friends in the information technology world; they prefer to keep things more buttoned-up and professional, too.
Like attracts like
If you are someone who leans toward building these business friendships with your clients, most of the clients you attract will likely be interested in that type of relationship. If you prefer a more buttoned-up relationship, most of the clients you attract will want the same.
You probably already have some clients who fit this category. These types of relationships grow naturally. And there are some things you can do to encourage their growth, should you wish.
5 ideas for nurturing business friendships with clients
- Breaking bread. I highly recommend you schedule at least one meal with each of your “A”-level clients every year. Even if one member of a couple takes the lead in the financial advisor relationship, it would be advised to invite the other partner to that meal as well. If you yourself have a partner and they enjoy this kind of socializing, they should also attend.
- Mixing people at appreciation events. When clients who like you and trust you get together with other clients who like you and trust you, they all leave liking and trusting you more. It’s called congruency theory. At client appreciation events, you’ll typically talk about anything but business.
- Hosting celebration events. A celebration event is an appreciation event with a guest or guests of honor—such as small birthday lunches, small anniversary celebrations and event retirement parties.
- Giving personalized gifts. Any sort of gift that is personalized to reflect a client’s interests can further the business friendship. Probably the biggest bang for your compliance-friendly buck is a gift to their children or grandchildren.
- Supporting charitable activities. Making a financial contribution to a client’s charitable endeavors is good. Gifting your valuable time to an event or project will win you the most business friendship points.
I would say that building business friendships can certainly be one of the most enjoyable aspects of your financial services practice. This is where you give yourself permission to have some fun while you continue to do the important work you do for your clients.