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Four C's of Client Communication in Turbulent Markets
Article publishedBy: David Richman  |  Article published on:August 6, 2024

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Four C's of Client Communication in Turbulent Markets

By David RichmanManaging Director, Advisor Institute

The bears are roaring and bringing investor complacency to an abrupt end. The best way to meaningfully help someone during turbulent markets is to be empathic in your approach by leaving yourself behind. This means doing your best to attempt to see the world through your clients' eyes instead of your own and adjust your approach accordingly.

When turbulent markets disrupt clients' sense of financial security, leave yourself behind by leveraging the four C's of client conversations.

  1. Candor: Your clients don't expect you to have a crystal ball. They want honesty from you. Don't be afraid to admit the existence of compounding crosscurrents—geopolitical risks, a potential global recession, a seemingly reluctant Fed, and almost half of the world's population holding national elections this year. Your clients expect you to have a point of view despite these uncertainties. Acknowledge the crosscurrents. Then, share your sense of various scenarios that could unfold and why you're recommending staying the course or adjusting their portfolio.

  1. Clarity: This is no time to sound like an economist ("on the one hand, on the other hand"). Your clients aren't looking for you to be a soothsayer, yet they are looking for clarity. Have a well-articulated thesis that crystalizes your point of view and connects the dots to what you're recommending for your client's portfolio, strategy or planning.

  1. Commitment: You're 100% committed to helping your clients weather today's market volatility. This commitment is underscored by both your level of communication and your continued vigilance in analyzing the markets: "You can count on me to always stay on top of your investments and in close contact with you during good and bad markets."

  1. Calm: You don't want clients hanging up the phone thinking, "Wow, he sounds more nervous than me." Be calm, not sedated. Your tone should suggest that you are on an "even keel," an uncharted course and rough seas notwithstanding:

Bottom line: Be a source of strength, not a silent partner to help clients cope with financial uncertainty. Reinforce their resilience and ensure an ongoing productive relationship with them.