The U.S. economy and stock market might historically be among the strongest in the world. But occasionally — including right this moment — they can suffer crises of confidence and severe volatility. And when they do, most Americans wear some of that added burden on their shoulders in the form of financial anxiety.
These are the moments that financial advisors try to prepare their clients to endure. But no matter how well you’ve set up your clients to properly manage and protect their wealth, they understandably might feel some insecurity as they read a steady drumbeat of headlines saying that everything is burning around them.
As a financial advisor, part of your job is to acknowledge your clients’ anxieties and offer reassurance that this, like past calamities, isn’t the end of the world. It requires deft communication, and an ability to cleanly address both tangible and emotional concerns.
Today, we’ll discuss a few tips you can use both in your marketing materials and your conversations as you help your clients navigate uncharted, unstable territory.
4 Ways to Alleviate Financial Anxiety
#1: Show Some Empathy
The first step to quelling financial fear is acknowledging that it exists and that it’s normal to experience it.
Your clients don’t have the training and experience you do, so while you might not panic over a 15% market decline in four days, the average person will. Approaching that fear with an empathetic ear puts the conversation on the right foot — when you listen to your clients, they’ll want to listen to you.
Being precise with your language is important. Consider these two different ways of trying to quell a client’s concern:
Wrong: “Oh no! You don’t have anything to worry about!”
- Dismisses the concern
- Might make the client feel embarrassed
- Might make the client more defensive and less receptive to advice
Right: “It certainly feels scary! But we can get through this, and I’ll explain how.”
- Legitimizes the concern
- Makes the client feel understood
- Might calm the client down and make them more receptive to advice
Empathy goes a long way in building connections and providing reassurance, especially in times of crisis. Listen to their fears, show grace and patience, then clearly explain what’s next, whether that’s standing pat and waiting out the storm, or making tweaks to an existing plan.
#2: Build Trust Through Clarity and Transparency
The less you understand something, the scarier it can be. That makes information a powerful tool in combating those fears — and the more your clients trust you, the better the information you provide will sink in.
The best way to build that trust? In addition to being empathetic, communicate clearly with your clients, and be as transparent as possible. Some tips:
- Educate your audience by offering jargon-light explanations of market trends, risks and opportunities. Providing information isn’t helpful if your clients can’t absorb that information.
- Keep clients in the loop by providing regular, timely updates. Consistent communication helps build trust and confidence, too.
- Be clear about what you don’t know in communications, too. For instance, you can use data to demonstrate to clients that bear markets are historically short and infrequent compared to bull markets. But you know you can’t predict whether we’re going to avoid or fall into a bear market, so be open about that fact. Realistic admissions of limitations help clients maintain reasonable expectations and reinforce the idea that you’re not going to sell your clients a bill of goods.
#3: Keep the Messaging Punchy and Varied
In addition to using clear language, you also want to structure your communications to make them as digestible and engaging as possible.
Whenever possible, present information in bite-sized pieces. Bulleted lists, short paragraphs and clear headings will make your content reader-friendly. Likewise, charts, infographics and videos can make difficult concepts easier to understand and lead to more engagement.
It’s good advice anytime, but especially when your clients are anxious. The last thing your clients want when they’re already worried is another source of frustration and stress.
#4: Focus on the Facts
It’s one thing to empathize with your clients’ emotions. But you should avoid adding too much of your own emotion to the fire.
Information, data and facts can go a long way toward calming clients’ nerves during periods of uncertainty. Speculation and feelings? Not so much. Financial advisors should especially be mindful of negativity creep, whether that’s in one-on-one conversations or emails to an entire conversation list. Politics can be an especially thorny topic — indeed, politics and marketing rarely belong at the same table — and even repel some clients. So take extra care in understanding the line between discussing the effects of policy vs. being political.
Be a Calming Presence for Your Clients
Times of financial tumult can be extremely stressful on clients and advisors alike. But you should take every bout of turbulence as an opportunity to demonstrate care and expertise. When your clients feel seen, heard, and supported, they’re more likely to stick with you for the long haul.
At Mischa Communications, we understand that every business must navigate broad and unique challenges alike. That’s why we excel in tailoring marketing strategies that resonate with your audience, rain or shine. Let’s get to work!