Although advisers are in the financial advisory industry, they're also in the customer service business. It's a tough racket. Advisers said they're subjected fairly regularly to torrents of abuse from ticked-off clients. And even the most-laid-back l advisers admit that it can be difficult to keep cool when you're being abused by an angry, in-your-face, royal pain of a client.
“This business can be crazy,” said adviser Ted Feight, president of Creative Financial Design, which manages $25 million in assets. “After 37 years, you can see a lot of strange stuff.”
But how much is too much? That question has taken center stage ever since Jet Blue flight attendant Steven Slater argued with a passenger, then opened the plane's door, slid down an emergency slide and took off Aug. 9.
At times, advisers probably wish they had an escape hatch of their own. “I think flight attendants and financial planners are under a tremendous amount of pressure,” Mr. Feight said. “When people mouth off, it's just hard.”
He recalls a time when a client, in an apparent drunken stupor, cursed him out as the two walked up a set of stairs on the way to a meeting with a certified public accountant.
Mr. Feight didn't hesitate: He ditched the client. But in some cases, advisers may have to take some abuse just so they can uncover what's bugging a client.
Such an approach requires empathy — and lots of self-control. “When people are really ticked off, sometimes they just want to be heard,” said Chris Holman, a senior executive with ClientWise LLC, a consulting firm. “The adviser needs to make sure they hear what is really aggravating the client.”
These are delicate situations, Mr. Holman said, and need to be handled as such. While advisers shouldn't allow themselves to be bullied, they must listen to the client so they can uncover the true problems.
That's precisely how independent adviser Frank Congemi, a financial adviser with LPL Financial who manages about $100 million in assets, handles angry clients. He said that since the financial crisis, profanity-laced conversations with clients have become fairly common.
Remarkably, he said, he isn't all that bothered by the rough language and the high decibels.
“When you use profanity, it lets me know there's a level of honesty. It lets me know a level of commitment,” he said. “Someone is so upset and raw that these are the words they choose to express themselves.”
Once clients have vented, Mr. Congemi said, the real conversation can begin. He usually finds clients aren't angry at him. Rather, they're generally mad about things beyond anyone's control — and just needed to sound off.
Some clients take it out on their advisers in a more subtle way: They offer up a steady, unrelenting stream of criticism and caustic comments. The constant carping can take its toll.
“It's not always a blowup,” said Mark Matson, chief executive of Matson Money Inc., an investment advisory firm with $2.6 billion in assets. “It can be an abrasive, condescending, arrogant client. Each time they call, you get a knot in your stomach.”
In fact, needlers can be worse than shouters. Richard S. Kahler, a certified financial planner and owner of Kahler Financial Group, pointed out that it's often easier to cope with a client who yells than a calm client who constantly criticizes him.
“When my integrity is being questioned, it's actually more devastating when it comes in a rational and calm manor than when it comes in the form of screaming,” said Mr. Kahler, whose firm manages about $120 million in assets.
For nearly 15 years, he has dealt with a client who constantly questions his fees, his performance and his strategies.
Finally, Mr. Kahler took a different tack. He detached himself from the attacks, trying his level best not to get defensive.
“I really did an exquisite job listening,” he said. “Ever since then, he's laid off questioning my ability and questioning my returns.”
Shop Talk is a regular column detailing how financial advisers run their businesses. The column focuses on unusual or innovative ways to attract more clients. Suggestions or tips for Shop Talk? E-mail Lisa Shidler at
[email protected] or visit the Shop Talk page at InvestmentNews/shoptalk.
