Advisors should map out preferred communication methods and expected response times with clients early on in the relationship.Oleksandra Troian/AFP/Getty Images
Whether it’s by phone call, text message, e-mail or social media, investors have more ways than ever to contact their advisors with questions, which can create a delicate balance between meeting clients’ needs and maintaining boundaries.
While some advisors favour an open-door approach and others prefer to keep more fixed policies, most agree that setting expectations early and having systems in place are essential for success.
More than one third (34 per cent) of clients surveyed by YCharts Inc. in its 2024 Advisor-Client Communication Survey say they reach out to their advisor monthly or more frequently to request information, make changes to their investments, update their financial plan or seek advice. The number rises to 44 per cent for clients with more than $500,000 in assets under management.
Jeff Thorsteinson, partner with Advisor Practice Management in Vancouver, says proximity and access to the advisor are becoming increasingly important to clients.
“Advisors now have to be very intentionally available in the right ways with the right tools at the right time … because you really want to focus on building trust with your clients and you want to focus on developing loyalty with your clients by being accessible,” he says.
“So, now the question is, how do you be successful with setting boundaries around communication?
Setting expectations early on
The first step, according to Mr. Thorsteinson, is to establish clear communication norms at the outset of the advisor-client relationship, including preferred communication methods and expected response times.
He also suggests revisiting these preferences during review meetings.
“Make sure you’re framing them not as rules and restrictions, but as part of your structured care experience so that people know that, ‘Wow, my advisor’s got this all covered. I know exactly how I’m going to be looked after,’ and that’s giving people confidence.”
Mr. Thorsteinson says the experience will differ depending on the type of client. For example, an advisor might offer their top clients a two-hour response window for questions — or even a separate phone number to call or text — and a one-business-day reply time for lower-priority clients.
Regardless of where the client ranks, he says it’s important for advisors to set boundaries to protect downtime, such as not answering calls during family dinners.
“I always try to remind advisors that, if you’re always available, you’re rarely operating at your highest level,” Mr. Thorsteinson says.
Layer in other types of communication
Some advisors find that they can set better boundaries and be more productive by using communication methods that complement individual phone calls or e-mails, such as newsletters and social media posts.
The Kitces 2024 Financial Planner Productivity Study found that using a standardized high-touch approach to contacting clients – which includes more than 20 touchpoints such as phone calls, e-mails, newsletters, webinars and events – reported higher revenue per advisor compared to a personalized low-touch approach.
Kyle Martins, partner and certified financial planner at Parallel Wealth in Langley, B.C., has found that content on the firm’s YouTube channel helps build trust and educate clients on questions that are not situation-specific.
“Normally, I say, ‘Yeah, there’s a YouTube video on this, I can give you my brief answer, but I would recommend you watch this,’ and it does kind of speed up the time from the financial planner’s side,” he says.
His firm, which offers both fee-for-service and ongoing retirement planning, also has several policies in place to meet client needs on a timely basis, including responding to client communications within 24 hours and a team approach in which support advisors can step in to ensure continuity if the main point of contact is unavailable. Still, the team also sets communication boundaries, which are detailed in its advisory service agreement provided to clients from the outset.
Examples include scheduling meetings only on weekdays and not giving out any of their financial planners’ personal information, such as cell phone numbers.
“[It] gives the first piece of separation from work to having a life as well,” Mr. Martins says. “It’s very easy to get phone calls and want to answer them right away.”
Keeping communication open and on appropriate channels
Darren Coleman, senior portfolio manager with Portage Cross Border Wealth Management at Raymond James Ltd. in Oakville, Ont., agrees that clients respond well to setting out the frequency of regular meetings early on and knowing what the process is if something important happens in between those appointments.
More broadly, though, his firm places a greater emphasis on advisor accessibility to align with client needs — whether they want to discuss a life-changing event or how to fund a spontaneous trip.
“The client’s world is 24/7,” he says. “If they want to send me a text at that hour and say, ‘Hey, I’m working on this, this is what I want to do,’ I want to be able to get up in the morning, get the text and then call them back.”
Mr. Coleman’s clients have his cell phone number. However, he cautions that, for compliance reasons, advisors need to ensure client conversations are taking place on the appropriate channels, through phone calls and e-mails rather than social media.
“I’m actually enthused if they have something going on in their lives and say, ‘I need to call Darren or the team about this, this is important to me.’ And we encourage that,” he says.
To align with downtime and vacations, having processes in place and a team approach are essential. For example, ensuring that at least two people on a team of 12 can cover every role and that e-mails are forwarded to another contact person when necessary.
“If I’m a client, that’s what I want — I want to know you’re kind of always open,” Mr. Coleman says.