Samantha Sullivan is senior vice president of platform operations for Dynasty Financial Partners, which transform successful advisors into extremely successful entrepreneurs. This piece originally appeared on Advisor Perspectives.
If you’re thinking about moving your book of business from one wealth management firm to another or transferring to a different custodian, you may be worried about roadblocks to transitioning clients while maintaining the best client experience. That is a legitimate concern.
Transferring an entire book of business from one custodian to another is a big job. If you fail to transition most of the clients you want to keep in a smooth and timely manner, you’ll be playing catch-up just when you should be implementing strategies for growing your business. This includes building existing client relationships by providing enhanced value and making the most of your new platform as a gateway to ongoing growth.
With these high stakes in mind, I recommend five ways you and your team can become even more capable and organized around transitioning clients.
- Empower your team
To empower your trusted circle of clients, you'll need to help them transition successfully. Start by emphasizing the "trust" part.
The degree of success you obtain through a transition is based upon you as the lead advisor and the trust you have with your team. Your colleagues have dedicated roles based on their experience and commitment to client service. Trust them to do their best for the firm and encourage them to learn from their potential mistakes. The alternative to delegating transition-related tasks is trying to make every decision and tackle every chore yourself, instead of working to put clients at ease through the transition. A leader with a positive and trusting demeanor breeds success.
Trust is contagious. If you trust your staff, your clients will quickly trust them too. Looking past the transition, this formula will help you scale your business via organic growth, backstopped by colleagues who have been empowered by you to do their best.
By taking on operational duties, like conducting preparation calls and sharing best practices for building trust amongst clients, the firm that provides transition support will be an extension of your team.
- Take training to heart
It is critically important for you and your staff to be ready for a transition. In just the last four years, our team has helped with 24 transitions representing more than $20 billion. We set a schedule for transition training and stick to it.
Though time is always precious, and more so in a transition period, it pays to dedicate resources and calendar space to training. In my experience, the most successful transitions show a direct correlation between time spent on training, and superior client and employee engagement.
After all, training breeds confidence. When you and your team are confident in their knowledge of the independent space, and operational systems, you'll be ready to convey that to your clients with ease, instilling more confidence in them.
- Follow a plan using templates and checklists
Make sure your clients have on hand all the information they'll need to facilitate the transition of their accounts, make investment decisions, and get re-invested in the market after the accounts transfer to your new firm. Clients are more likely to follow you to a new firm if they know you have a clear and demonstrable plan for helping them make the leap.
A best practice is to use templates for building investment models, mapping strategies, and providing thorough re-investment strategies with an open-architecture platform.
Build task-oriented checklists for transitions to make sure every component is considered and ready before clients get involved. Share those tools with transitioning advisors and their teams so they are fully equipped with a proven plan they may use to communicate with clients.
- Maintain client records securely and efficiently
I recommend using technology platforms from software vendors such as DocuSign, Box.com, Salesforce among many others to keep all work and communication on each client's transition in a centralized and easily accessible location.
Successful advisors leverage these tools readily to keep client's information on hand, annotated to remind them of vital topics and next actions, meetings and follow-ups to demonstrate superior client service. If you work with a firm to facilitate your transition, see if it tracks its communications with advisors during and after the transition process.
Organizing paperwork and communications on this level also lets the firm you partner with share with transitioning firms a litany of best-practice recommendations based on real-world success in establishing a successful independent business.
- Communicate clearly and concisely
In a period of transition, clients ask questions, such as:
- When will I be reinvested?
- What if I want to make a change in my investments?
- When will I get billed?
- How will I get billed?
- How will I get reports and statements?
- How do I see my accounts online?
We recommend you prepare for these questions and others that arise in a transition by having bullet points, tear sheets, and FAQs ready for sharing with clients. This can double as an opportunity to reiterate what your new business does and how your move stands to improve their experience.
Remember, your clients are agreeing to working with you and continuing the relationship when they say “yes” to joining you in a move to independence. Being prepared with facts and outlines to answer their many questions can keep clients calm and give your staff the confidence and clarity they need to make your move a success for everyone.
