Written by: Paul Kenney | Syntax Data
If you are reading this, odds are you have had an experience calling and speaking to a client service representative, be it for a credit card company, a hotel, or an airline.
At the end of these conversations, you are often asked to stay on the line and rate your satisfaction on a scale of 1 to 5. Your satisfaction in these, and most client service interactions, is driven by things you’ve observed during the conversation: whether your desired outcome was achieved, the representative's demeanor, and their efficiency with your time. However, the outcome is also influenced by things you didn’t see, such as the quality of the company’s systems, the representative’s access to data, and their training.
Client service, as it turns out, is a bit more complex than a simple 1 to 5 scale. It has many inputs, dimensions, and challenges, including:
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Time availability: person-to-person client service interactions are difficult to scale, which constrains responsiveness and the ability to customize.
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Product scope: complexity increases with the number of products/services/diverse client solutions offered by an organization.
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Firm level: employee turnover, firm alignment with client goals, and staffing levels all impact the delivery of client service.
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Employee specific: an individual’s tenure with the firm, problem-solving skills, and job satisfaction all flow through to client service.
For investment managers and advisors, client service is often complicated by additional dimensions. Client-facing individuals often have meaningful non-client-related workloads that place restrictions and pressure on their time. There is also the added stress of dealing with clients suffering losses in market downturns and the emotional worries they face associated with the fear of potentially not being able to meet their financial goals. Additionally, investment advisors must deal with the inevitable periods of underperformance when their results are out of sync with the market, or when investments do not perform as planned.
Perspectives on what defines good client service often differ based on a person’s background and experience. Drawing on my observations as a plan sponsor, consultant, and investment manager, I associate the following personal characteristics with delivering excellent client service:
Many of the necessary qualities are intangible. Talented client service people have the equivalent of a shot clock in their head – an innate sense of when they need to reach out to clients. They also understand that there is a rhythm – a steady heartbeat – to strong relationships.
As you assess the current state of your organization’s client service capabilities, here are items for you to consider.
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Survey your clients to understand their needs and expectations. Remember the client defines your value proposition -- they determine the services they want.
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Client service evolves over time; it is not static. Make sure you are keeping up with your clients’ changing needs – this is particularly important as families and businesses go through intergenerational change.
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Technology will increasingly drive client service results. Consider shifting your firm’s tech focus from a team of IT professionals providing support to data scientists and data engineers developing solutions.
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Client relationships can only move in three directions: up, down, or sideways. Understand the dynamics within your relationships, assess which are at the greatest risk, and develop action plans accordingly. It is generally easier to save a client at risk than find a new client.
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The easiest way to build a relationship is to view the world from the client’s perspective. Old school techniques still work, a simple phone call asking your clients what you can do to make their lives easier can go a long way.
It is hard to understate the role of client service for investment managers and advisors. It is, after all, what helps build the foundation of trust upon which successful relationships and businesses flourish, and it can be the source of goodwill that carries those relationships through difficult markets and life transitions.