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Topics: Hargreaves Lansdown| BestInvest
Clients come in all shapes and sizes but, as Heath Reidy discovered, it might be wise to keep an eye out for the following...
The way a prospective client presents their problems, right down to attitude and body language, can give you a clue as to the type of person they are.
Here are three toxic types to watch out for…
According to John Lang, director of Tower Hill Associates, high maintenance clients come into your business with a pre-ordained idea of what they want and immediately ask for specific things, rather than listen to what you can offer.
Danny Cox, head of advice at Hargreaves Lansdown, said these clients can be toxic because if you do things for them that you do not do for other clients, your business will become unmanageable.
Demanding clients can range from people who want instant notification of any business changes you make, to people who demand monthly meetings with you, when your standard process is to only meet clients every six months.
“You can get a sense of high demanding people once you have your proposal and they start asking to bend the solutions to fit what they want,” Cox said.
Angry clients have often had problems with their previous adviser, have made a complaint about them, or have taken legal action against them.
They can be bad for your business because they may be more likley to do the same again, Cox said.
“That throws up a big red flag that says this is somebody we don’t really want to accommodate.
“Through a misunderstanding, a misconception, or not managing expectations properly, the client will do exactly the same to you.”
Cox said you may see signs of what he calls the 'angry client' in your first meeting, or even your first phone call with them.
For instance, they may make disparaging remarks about other IFAs, or say they think they know best.
“If they don’t really respect the financial adviser generally, then they are not going to respect me and what I do,” he said.
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turning away demanding clients
The danger of taking on 'demanding client' is the adviser might have to do some work. Better not do that. Much more fun to focus on easy pickings and watch our industry go down the pan.
Posted by: Anonymous
Who needs customers?
Yes Mr Cox, you employed persons always seem to have the answers! well done. That has solved my problem as a Self Employed IFA that to date has come through many years and especially the last few ensuring that our clients are best suited and their "NEEDS AND DEMANDS" (have you heard of that phrase? are catered for. If you do not want your customers because they actually challenge what they are paying for and paying into then send them to me - I will look after them. The "problem" you have solved for me is:- I wonder why SOME IFAs seem to have so much time on their hands to go off playing golf and chit chat to each other at networking meetings? Now I know that they have to fill the day because they find customers an irritation! Glad you can still draw your salary each month regardless of your attitude to what actually pays for it.
Posted by: dwinsal
Well done!
Your, ahem, expert views in this article have set the reputation of advisers back about 20 years. Bravo!
Posted by: anonymous
Hahaha
http://www.moneymarketing.co.uk/analysis/danny-cox/116449.article He describes himself...."I am quite a task-focused person so I enjoy getting an issue that has a challenge and finding a way round it."
Posted by: Anonymous
Mr Cox has a point
Danny Cox makes a perfectly valid point. There are nightmare clients out there and we tend only to take clients on who have been personally recommended by existing clients. Even then we screen them pretty heavily. I have suffered the 'can you come round to the house after the kids are in bed, say about 9.30pm...' requests, the calls on Mondays from low risk investors asking me why I hadn't put most of their money is some highly speculative fund they have read a rosy review of in the Money Mail on Sunday, and the 'I sued the last three advisers I had because they were useless...' comments. I am running a business and have no intention dealing with clients I don't like, can't get along with or push so far outside my business model that they cause me to lose money or waste my time. Seems there are plenty of muppets out there who will deal with them though, so the rest of us that run profitable firms can carry on being selective. The problem here is the choice of the word 'poisonous' - 'unrealistic' may have been kinder.
Posted by: huw
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Selecting Clients
Mr Cox, you are employed by a highly respected company, yet your comments against clients appears irrational,for you appear to be letting your employers success go to your head. I have a number of self made high rich client's and I would be extremely supprised if they had not researched their requirements before seeing me. Such people tend not to enjoy the company of idiots and although they may challenge opinion, it is after all their money and their entitlement. Please therefore treat clients with respect for they are under no obligation to deal with you or your employer.
Posted by: M J Winfield