In a recent video, I talked about the opportunity to remind clients that you're open to taking on additional clients, in the event their friends mention that they are thinking about changing advisors as a result of the market turbulence since last fall. (To view video interviews on this and other topics, look on the right hand column of the blog at www.getkeepclients.com)

In response, I've heard from some advisors who said that they understand why having these kinds of conversations makes sense. At the same time, they are nervous about raising the issue of referrals when they're uncertain about how happy clients are themselves. A common concern: "Before raising referrals, how can I get a reading on how happy clients really are?"

This months column in Investment Executive identifies three things to consider in getting feedback - what to ask about, when to ask and how to ask.

What to ask about

As a general rule, advisors should get feedback on at least two things.

Start with the core service you provide. In some cases, this will relate to the portfolios you've built for clients and their investment performance. If you take a broader view on clients' finances, you should also probe for satisfaction on a full range of financial advice.

In addition to getting a reading on satisfaction with performance and advice, you also need to check for clarity and frequency of communication. The good news: Unlike investment performance, our contact with clients is absolutely in our control. In fact, use satisfaction with performance as the sole measure of how you're doing and you end up being held hostage to short term market fluctuations.

When to ask

In the ideal world, you start meetings by getting a measure on how clients feel.

That works if you have been in regular contact over the past six months and if you had frequent conversations before the downturn, preparing investors for the inevitable ups and downs that accompany being invested in equities. Or perhaps last spring or fall you had a conversation with clients about the risks in the market and made some changes to partially protect clients against a possible downturn.

If you were like most advisors and didn't have this conversation, consider changing the timing of when you query clients about how they feel. Rather than asking at the beginning of a meeting, ask them at the end - after you've discussed possible modifications to their portfolio and outlined your communication plan for the period ahead.

How to ask

The problem with the questions many advisors use to assess satisfaction is that clients have difficulty answering them honestly.

Starting a meeting by saying "In light of the recent market turbulence, how satisfied are you with the performance of your portfolio" invites a client response of "it's okay", "fine" or "not bad", none of which are particularly helpful in getting a handle on how clients really feel.

Or after spending an hour talking about their portfolio and perhaps agreeing to changes, for instance, it's tough for clients to say that they're still uncomfortable.

Instead, start or end a meeting by asking for feedback in a way which encourages clients to tell you how they really feel.

For example, you might end a meeting by saying: "I'd like you to be completely honest in answering this question. In light of our conversation today, on a scale of 1 to 10 how comfortable are you on two things - first, how your investments are positioned going forward and second, the kind of communication you've received from me, with 1 being low and 10 being high?"

If the "comfort rating" you get is 8 or higher (a 9 or 10 would be nice but may not be realistic on the performance dimension), you're in reasonable shape - and can likely continue with a low key referral conversation.

If the rating is 6 or higher, your client is telling you they're still not comfortable - and you need to spend more time understanding why that is.

A rating of 7 is in the mushy middle - not great, not terrible; the decision on whether to continue with a reminder that you're open to taking on new clients is a subjective one, depending on you and the client you're talking to.

However you do it, checking back with clients on their comfort level is an important part of your meetings. By making it easy for clients to tell you how they really feel, your meetings will be a better use of both your and your clients' time.

To read the full column, go to

http://www.investmentexecutive.com/client/en/News/DetailNews.asp?Id=44774&ca

t=30&IdSection=30&PageMem=&nbNews=&IdPub=