In some cases, meeting in a social context helps build strong, long-term advisor-client relationships.andresr/iStockPhoto / Getty Images
From grabbing a quick lunch to planning larger appreciation events, getting to know clients socially can be one way to deepen the relationship. But while some clients and advisors thrive in this type of environment, it may not sound as appealing to everyone.
Discovering the extent to which it’s worth spending time and budget on opportunities to meet with clients outside the office – or how to get the most out of these efforts – requires a careful analysis of an advisor’s personality and a realistic look at their clients’ needs.
Building the connection
Getting together with clients socially outside regular review meetings requires advisors to always be “on” and that can be tiring, says Shiraz Ahmed, senior financial advisor, portfolio manager and founder of the Sartorial Wealth team at Raymond James Ltd. in Mississauga.
At the same time, he says, meeting in a social context helps build strong, long-term advisor-client relationships.
Indeed, as a cross-border advisor, Mr. Ahmed logs thousands of miles a year visiting clients all over North America, scheduling lunches, coffees and dinner meetings in various cities. If his client base was centralized, he says, he would also hold client appreciation events.
“It’s something that I’m a big believer in, especially for our highest-value clients. It’s essential that they get to know us, they get to know me,” he says.
Some clients are also in favour of this approach. A 2023 survey from Oechsli, a financial advisor coaching organization based in Greensboro, N.C., found that 98 per cent of participants with US$500,000 or more in investible assets are interested in attending an intimate client event hosted by their advisor.
For clients who are interested in such events, Mr. Ahmed says creating an out-of-office opportunity to have a conversation avoids an overly transactional relationship and creates a better connection.
“There are the necessary components that you do in your actual review meetings, for example, but there’s a lot of information – a lot of nuggets – that come out when you’re having more of a social conversation,” he says. “You learn more about the family dynamics, you get a deeper sense of the situation.”
Nice to have, but not a differentiator
Sam Lichtman, founder and certified financial planner with Millen Wealth Advisors in London, Ont., also sees value in a coffee or a drink with clients to build trust and establish the personal side of the advisor-client relationship.
But he views these social connections as more of an informal add-on than a differentiating factor.
Recently, Mr. Lichtman has offered clients educational webinars rather than focusing on planning social or client appreciation events. Ultimately, he says, whether to offer to meet socially with a client comes down to understanding their expectations of the relationship.
For example, some wealthier millennials are unlikely to set an hour aside to meet their advisor socially, as they’re in the prime of their careers and prioritizing work and family time.
“For those individuals, we try to keep it as efficient as we can,” he says, focusing on the financial aspect of the relationship.
Personality types
April-Lynn Levitt, partner and business coach with The Personal Coach in Waterloo, Ont., says the client profile should determine the extent to which an advisor builds a social relationship with a client – and the types of get-togethers they offer. For example, while some clients are already overextended with commitments, others would welcome the chance to socialize.
It also comes down to the advisor’s personality.
This ranges from advisors who don’t socialize with clients at all or prefer one-on-one dinners to those who host large client appreciation gatherings. Social interaction can be tailored, she says, but it’s important to ensure you “don’t do what you don’t like” and remain authentic.
As an example, she points to one advisor who didn’t enjoy playing golf with clients. Looking for a social activity that was a better fit for his personality and skills, the advisor found success when he joined a cycling club and eventually invited clients to come along.
At least once a year, Ms. Levitt recommends advisors write down a list of their top 20 to 25 clients to ask for feedback on whether they’re interested in meeting socially and, if so, inquire about their hobbies and interests.
Ultimately, Mr. Ahmed says, each advisor will decide on the level of social interaction most appropriate for their business, with some preferring to “separate church and state.”
Either way, the aim is to get to know the client in an environment in which they feel comfortable and ensure the type of communication is a good match with their needs.
“Whatever we need to do to earn that trust from clients is what we should be doing,” Mr. Ahmed says. “Some people want to do it out of the office and others prefer to do it in the office, and we just need to be moldable and adaptable.”