If you are a business that is just finding its feet, the prospect of hiring a financial consultant can seem like an unnecessary expense. With staff wages, overheads, and product or service-related costs, hiring someone else can seem totally unorthodox.
However, the importance of a financial consultant cannot be understated. Regardless of the scale of your business, or the industry you reside in, a financial advisor can change the trajectory of your business entirely.
One of the benefits of enlisting the help of a financial expert is the improvement in customer retention, which can certainly happen. We are going to explore why, specifically, below.
For any business, however, customer retention, whether a new or existing customer, is highly important. Without it, growth and expansion is impossible.
In the following article, we are going to explore the importance of a financial aspect in relation to customer retention. Moreover, we are going to outline the chief responsibilities of a consultant and what to look for when hiring one. Continue below.
In a Company’s Structure, What Are the Key Responsibilities of a Financial Advisor?
As previously mentioned, those with limited experience, in whatever sector they reside in, may be unsure of the responsibilities of a financial advisor. Resultantly, the idea of hiring one may be ridiculous.
Those with more experience or those who work at scale will understand the importance of one however, and how they can shape company culture and incite growth.
Broadly, a consultant with a background in finance will offer advice, guidance, strategy recommendations and planning support on all areas related to a business’s finances. This includes things like investment management, risk mitigation, compliance advice, reporting and analysis, high-level strategy, and more.
The term ‘financial consultant’ is broad, with those who would consider themselves a financial advisor having specific experience and expertise. You may find one consultant who has ample experience in risk mitigation, for example, whilst another will support you in a more generic capacity.
Regardless of the consultant’s specialism, it is widely accepted that someone with experience in financial management can benefit any business. Regardless of size, a financial advisor can offer insights and guidance that guarantee company health, generate growth and ensure success.
Moreover, they have the capability to improve and stabilize customer retention. The advice and knowledge a consultant in this field hold goes hand in hand with improving your company’s relationship with its customers.
And having a positive relationship with your customers is key to customer satisfaction and, subsequently, retention. We explore why, exactly, this is the case below.
How Do They Improve Customer Retention?
If you are a business that sells a product or service, it is imperative that you actively work to retain customers.
Simply put, customers are what keep your business open. This is obvious, right? For some companies, not so much. Business owners can forget the importance of creating a culture that values the customer, as well as one that seeks to form positive relationships with the consumer.
If the aim is to grow and improve profit margins, as well as expand at a healthy rate, then retaining customers is key. A financial advisor will help you do this. Additionally, the advice and guidance they provide, which will shape company strategy, will make obtaining new customers fair more likely. This is for the following reasons:
- Customer Needs and Preferences
As stated, one of the main responsibilities of someone in this field is to analyze financial information and data. Part of this will include the needs, preferences and habits of your customers.
A consultant can share these with you, whilst offering an insight on how you can better accommodate the needs of your customer. The result is customers who feel that their needs and wants are catered to, which is likely to improve retention significantly.
- Improve Financial Stability
No customer wants to buy a product or service from a company that has issues with financial stability. It’s that simple.
Financial instability suggests to the customer that you are not a reliable vendor, and sows seeds of doubt when making a purchasing decision. This is especially true if the service or product you offer is expensive.
By helping you improve financial stability, through the implementation of proven strategy on areas of investment and planning, they are likely to help you retain customers.
- Reducing Financial Risk
This point is somewhat similar to the above. A company that is known for making risky investments is not one that can be easily trusted.
Customers, the majority of the time, will want to ensure their financial commitments are secure and without risk. A customer buying an expensive product, for example, only for the company to close shortly after, will be wholly disappointed.
Thus, having someone to mitigate risky decisions will help to improve retention significantly.
- Guidance and Support for Customers and Owners Alike
Depending on the type of business you run, customers or clients may appreciate guidance on advice on finance and market trends.
You may not be qualified to deliver this, through lack of experience. This is totally fine, as not all business owners have the time or resources to learn.
A consultant, however, will be able to offer specific and tailored advice on matters of finance. For your customers, this is likely to indicate that you are willing to go the extra mile. Thus, you are likely to keep your customers and attract new ones.
The Bottom Line
In conclusion, an expert in finance is likely to help your business in immeasurable ways.
Most importantly, however, they are likely to offer advice and guidance that improves your relationship with your customers. A business that is attuned to the needs, preferences and wants of their customer base is one that is likely to retain customers and excel in a competitive market.