Despite the choppy economy, Robert Klosterman, the president and chief executive of White Oaks Wealth Advisors Inc., in August took more than 100 of his top clients on a three-hour boat cruise of Lake Minnetonka in Minnesota.
“We didn't hit anything, and we didn't get stranded,” said Mr. Klosterman, whose firm manages $220 million in assets. “It was a more casual kind of thing. People were relaxing and having good conversation.”
Although costs are tight for many advisers, these types of client appreciation events remain extremely important — especially following last year's market collapse, which left many clients worried about their financial future.
“Advisers are definitely engaging with clients,” said Kelli Cruz, director of advisory services at The
Charles Schwab Corp. “I haven't heard anyone cutting back. In fact, I think they're trying to spend more time with clients than ever before.”
For Mr. Klosterman, the cruise was a departure from his usual sit-down client dinners — and carried more risk. He worried about the weather and was concerned that by holding the event on a Saturday, attendance might be low.
But he claims that clients loved the outing and ended up mingling and eating lunch on the boat on a beautiful sunny day. Mr. Klosterman said he spoke more freely with clients than he usually does at a dinner. The cost of the event was about $10,000, which is similar to what the firm would have paid for a dinner for 100 or so clients, he said.
Ray Harrison, owner and adviser with Harrison Financial Group Inc., said he sponsors several client appreciation events each year and tries to make them unique. For example, his firm has held events to teach clients how to use a digital camera and how to avoid identity theft.
In October, his firm invited nine clients to a golf course, and each client brought one prospective customer. The 18 guests were divided into three groups — highly skilled golfers, average golfers and novices. The three groups of six met for 45 minutes each with one of three golf pros and received golf tips. After 45 minutes, the groups rotated to the next golf pro to practice another skill.
After that, everyone competed in a golf skills competition, and the winners in each group received trophies. They finished the event with a lunch. Mr. Harrison said the event was a success and carried a bargain price of just $800.
The firm plans to do something similar with female clients and then couples in the near future.
“We got to spend quality time with clients and got to meet nine people that weren't clients,” he said. “It was phenomenal.”
Next year, Mr. Harrison's firm, which manages roughly $100 million in assets, is planning a magic show where a local magician will use tricks to illustrate financial principles.
