3 reasons why trust will make you more money

November 10, 2016 by Makanzie Kubale

A client meeting in an office with her financial advisor who she chose based on trust

About the author:

Makanzie Kubale

Business development representative

Makanzie assists the sales team to develop and expand in the mid-market space. She builds relationships with contacts by sharing the value Advicent brings to partnerships within the financial industry.

Trust is a word we all know and use, but what do we really mean when we use it? “A reliance on the integrity, ability, and promise of a person or thing” is one definition.

In today’s world, many people find trust difficult to come by. However, if you can assure your clients you deserve their trust, it can make you more money. Here is how:

1. Retention

Because you are essentially the face of the organization for a given client, they may associate you with the integrity of the entire firm. By showing your clients you are a trustworthy advisor, they will continue to build a relationship with you and the firm throughout their financial life.

2. Word-of-mouth

Seventy-four percent of consumers identify word-of-mouth as a key influence in their buying process. Once you have built the foundation of trust, it does not stop there. It is important for you to continue to build on that trust and show you genuinely care. U.S. News reported that in 2013, the average financial advisor assisted around 150 households.

Now the trick to this is, when you meet with a client or take a look at their portfolio, you must know where they stand compared to where they want to go. The utilization of a client portal and personal financial management can help to build these types of relationships. By allowing your clients to track their own financial highs and lows, you will remain top of mind and relationships will flourish. With the help of relationships built on trust, recommendations will flourish.

3. Increase in profits

Now all of these items ultimately lead to an increase in profit, but let me tell you why this is a topic in and of itself. Clients are trusting you with their livelihood, and they must be able to trust you and your ability to “do right by them.” Clients need to know that you are experienced enough to bring them to their retirement goal.

When they trust you and your ability to do so for them, they will be more inclined to share with you all of their assets through account aggregation. This can lead to an increase in assets under management and more revenue.

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