Diversification is Not Just for Risk Management – It Applies to Client Communication
Investing 101 teaches us that diversification is mandatory. To manage risk, you don’t want all of your eggs in one basket. Having a mix of securities across sectors, industries, and regions can help your portfolio withstand unexpected dives. Stocks, bonds, and alts all have a place in the modern portfolio.
Diversification isn’t just healthy for your portfolio, however. RIAs who have a diversification of communication styles and methodologies will have an edge.
No Two Clients are Alike
Everyone ingests information in a different way. Some people learn best by reading in-depth articles. Some prefer to get their information from podcasts. Others respond best to video. Human brains are all wired differently and that helps us, as a species, solve problems and innovate. But it can also create friction or lead to lost opportunities if you have preferred channel for communication that doesn’t align with your client’s preferred channel.
Sending out a newsletter with market or practice updates is all well and good, but many folks won’t touch their inboxes, or, at best, will skim and fail to absorb the information you are transmitting. It follows that, to be a better communicator you need to build a diversified communication strategy.
Our Video Pivot
I am proud of the McBride Group’s track record of client retention. One of the main reasons we retain clients is because we deploy a diversified communication strategy. Our video update series has been a huge driver of this. As someone with a background in film and television, I know that many folks respond to hearing a professionally delivered, crisply produced video. Though video is a new medium in the scope of human history, it is one that every client has grown up with. In portfolio terms, video is a “core exposure” in many ways.
Most RIAs don’t have my background in production, which is why I offer out my services on that front. If you’re interested in diversifying your communication strategy, let’s talk. I think we can help.
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