Despite lean times, client appreciation events still a must

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.
DEC 07, 2009
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.

Latest News

LPL adds $600M UBS team in Tennessee
LPL adds $600M UBS team in Tennessee

The firm's latest additions, led by a second-generation financial advisor, are striking out via its Linsco employee advisor channel.

eMoney supports focused financial planning with enhanced needs analysis
eMoney supports focused financial planning with enhanced needs analysis

The Fidelity-owned fintech aims to help advisors connect with mass market and mass affluent prospects with single-goal conversations.

Trump SEC pick Paul Atkins grilled by Democrats in early political test
Trump SEC pick Paul Atkins grilled by Democrats in early political test

The prospective chair of the agency has pledged to shed conflicted interests and "return common sense to the SEC."

Finra moves to boot Alpine Securities, same firm that claims the regulator can’t
Finra moves to boot Alpine Securities, same firm that claims the regulator can’t

'If I were on the side of Alpine Securities, I’d put all my eggs in the federal court,' one attorney said.

CFP Board floats new procedural rules around bankruptcy, misdemeanors
CFP Board floats new procedural rules around bankruptcy, misdemeanors

If approved, the proposed revisions would achieve outcomes similar to the existing process while reducing the burden of oversight.

SPONSORED Retirement plan balances are flourishing. Why are so many advisors missing out on a $3 trillion opportunity?

Participants who receive professional 401(k) advice see higher returns on average, net, than those who don't.

SPONSORED Focus on clients, not compliance – why Gary Corderman found his fit with Farther

This wealth management platform finally delivers on the technology promises other firms couldn't - giving advisors a better way to scale and serve