The recent market volatility brought on by economic uncertainty, due much in part to tariff wars between the US and its trade partners, may be a precursor for tougher times ahead, depending on who you talk to. But it’s undeniably true that a recent 1,700-point drop in the Dow and 3 percent drop in the S&P 500 over the course of four days created a lot of work for financial advisors.
The guidance you give to your clients keeps them from giving in to panic and flinching during a selloff like we are experiencing. I am speaking with plenty of advisors to get a sense of what is working for them and what isn’t. I hear from them that the block-and-tackle work between those advisor-client touchpoints was just as important as the actual conversations that are taking place.
We talk a lot about technology as a driver of growth and value for advisors. In this case, technology is showing its value by helping savvy advisors manage large groups of panicking clients without missing a step.
In other words, it is a great stress-test for your CRM. How did yours fare?
In my conversations, I hear some common themes from advisors who are handling the volatility spike with aplomb. They know they need to quickly identify their high-priority clients. They had to know whether to prepare a straightforward “comfort call” or go deeper into a market review with each client. And they have to keep up the cadence of communication to cement the trust they have earned with those clients.
The CRM workflows that work well for our users tend to highlight three groups as top priority.
Once you know who needs your attention, it helps to build workflows for comfort calls and volatile market reviews. Every advisor works differently, but a comfort call tends to be the tactic we use for clients who need to hear from you right away, with minimal preparation.
On the other hand, the workflow for a volatile market review should surface a more in-depth snapshot of the client’s finances. You want your client to see that you have a deep understanding of their personal situation so they will listen to your advice.
Forward-thinking firms are also using AI to support that deeper understanding of their clients. The ability to analyze vast amounts of client data in real time and surface insights – such as behavioral patterns, portfolio risk exposure, or client engagement gaps – can help advisors make smarter decisions, faster. AI-powered tools embedded within CRMs can help firms not only automate processes but also provide a clearer, more proactive picture of client needs.
After the flurry of client calls, the advisors who leverage their CRMs effectively will set up automatic follow-up calls. AI-driven capabilities are also making it easier to prioritize these touchpoints, ensuring that advisors are spending their time where it matters most – on high-value client relationships, not administrative tasks. Make sure that your ongoing deliverables and service obligations reflect the conversations you have and the current market conditions.
While it may seem basic, fundamentals matter when the market churns. And you can bet this won’t be your last encounter with volatility or a global market panic. If you find yourself scrambling to keep up with your client touchpoints, use this time to plan a more efficient response for the next time – because there will be a next time.
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