For clients who are a bad fit, being upfront is the painful but right thing to do
Heading a wealth management firm isn’t easy. While you can’t please everybody, that doesn’t mean you shouldn’t do everything possible to deliver good client service. But what happens when one customer takes a toll on the team?
The head of a US-based independent advisory firm shared his own story about how he nearly said goodbye to a valued client. “Years ago I was approached by a high-profile local businessman,” said Patrick Renn, president of Renn Wealth Management Group in the US, in a contributed piece to Financial Advisor IQ. “We had a good conversation and I took him on as a client.”
Renn described the man as a “very hard-charging executive — as Type A as they come.” With no family to distract him, the client was able to work 24/7 on his business. And he adopted that same non-stop attitude in dealing with Renn’s firm. They did good work that paid off for him, but he was hard to keep up with.
“[A]fter a year or so my staff started to complain,” Renn said. “I didn’t take the complaints too seriously at first … But I came to notice he was calling and contacting staff much more frequently than other clients.”
The client was being serviced by multiple advisors at the firm, who admitted to Renn that they dreaded his calls and having to deal with his gruff and demanding behaviour. The complaints kept coming, and Renn had to make a decision.
“My staff are good people who I respect and who had been with the firm for 15 years or more at the time,” he said. “They understood how to serve customers and provide value, and they enjoyed a good challenge as much as anyone. … I cared about these people more than about my client list.”
Renn invited the client to lunch and told him, nicely but directly, that his manner was off-putting to the firm’s staff. It wasn’t a good fit, so they had to part ways. But surprisingly, the client admitted that he had unpleasant tendencies when it came to business and money. He asked for a second chance; Renn said no at first, but the client persisted, and Renn agreed to keep him “with a very short leash.”
“To my surprise — and especially to that of my staff — he really did change,” Renn said. “He backed off on the number of calls and was always pleasant when he did check in. He has become a model client and we are glad to have him as part of our business.
“I’m glad my staff persisted in their complaints about that specific client many years ago,” Renn continued. “It made me a better manager by getting me to focus on more than just the bottom line.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Advisor: Why I was ready to turn a client away
Advisor: how I build long-term client relationships
The head of a US-based independent advisory firm shared his own story about how he nearly said goodbye to a valued client. “Years ago I was approached by a high-profile local businessman,” said Patrick Renn, president of Renn Wealth Management Group in the US, in a contributed piece to Financial Advisor IQ. “We had a good conversation and I took him on as a client.”
Renn described the man as a “very hard-charging executive — as Type A as they come.” With no family to distract him, the client was able to work 24/7 on his business. And he adopted that same non-stop attitude in dealing with Renn’s firm. They did good work that paid off for him, but he was hard to keep up with.
“[A]fter a year or so my staff started to complain,” Renn said. “I didn’t take the complaints too seriously at first … But I came to notice he was calling and contacting staff much more frequently than other clients.”
The client was being serviced by multiple advisors at the firm, who admitted to Renn that they dreaded his calls and having to deal with his gruff and demanding behaviour. The complaints kept coming, and Renn had to make a decision.
“My staff are good people who I respect and who had been with the firm for 15 years or more at the time,” he said. “They understood how to serve customers and provide value, and they enjoyed a good challenge as much as anyone. … I cared about these people more than about my client list.”
Renn invited the client to lunch and told him, nicely but directly, that his manner was off-putting to the firm’s staff. It wasn’t a good fit, so they had to part ways. But surprisingly, the client admitted that he had unpleasant tendencies when it came to business and money. He asked for a second chance; Renn said no at first, but the client persisted, and Renn agreed to keep him “with a very short leash.”
“To my surprise — and especially to that of my staff — he really did change,” Renn said. “He backed off on the number of calls and was always pleasant when he did check in. He has become a model client and we are glad to have him as part of our business.
“I’m glad my staff persisted in their complaints about that specific client many years ago,” Renn continued. “It made me a better manager by getting me to focus on more than just the bottom line.”
For more of Wealth Professional's latest industry news, click here.
Related stories:
Advisor: Why I was ready to turn a client away
Advisor: how I build long-term client relationships
