The #1 Reason Clients Leave Their Financial Advisor? It’s Not Performance
Most advisors fear the dreaded client call: “We’ve decided to move in a different direction.”
What went wrong? The portfolio was performing. The fees were fair. There was even a decent relationship.
But according to study after study, the number one reason clients leave their advisor has nothing to do with returns. It’s lack of communication.
Silence Is Expensive
A report from Financial Advisor Magazine revealed that 72% of clients who left their advisor said poor communication was the reason. Not fees. Not performance. Communication.
Clients don’t expect you to beat the market every year—but they do expect you to answer their emails, call them back, and proactively update them when markets get shaky.
Here’s what poor communication sounds like to a client:
“They only call me when they want to rebalance.”
“I’m not sure what I’m paying for.”
“They haven’t reached out in six months.”
And here’s the worst part: They might not tell you they’re frustrated. They’ll just walk.
3 Ways to Be the Advisor Who Does Communicate
Create a client communication calendar
Map out how and when you’ll be in touch. Weekly or monthly newsletter? Quarterly reviews? Annual deep-dive? Don’t leave it to chance. Systematize it.Send something valuable—often
You don’t need to wait until it’s time to talk performance. Share a helpful blog post, a video explaining a new tax change, or a quick check-in about life milestones. Even a short message says: I’m thinking about you.Let them know how to reach you—and encourage it
Clients shouldn’t feel like they're bothering you. Remind them you’re available for questions. Consider offering 15-minute open office hour slots each month to catch up with those you haven’t heard from.
Communication Builds Trust—And Trust Builds Loyalty
You became an advisor to help people feel confident about their money. But they can’t feel confident if they feel forgotten. The best advisors don’t just manage portfolios; they manage relationships.
So ask yourself: When’s the last time you connected with your clients outside of a scheduled meeting?
Because the truth is: Communication is the service.
