Australian clients unhappy with advisers’ communication
According to a Business Health survey, clients are dissatisfied with their adviser’s communication due to insufficient frequency and a lack of personalisation, and those firms that communicate more experience higher profitability.
Business Health’s Australian survey of over 30,000 advised clients found Australian clients rated their adviser’s communication in the bottom two out of nine key performance indicators (KPIs).
Insufficient frequency and a lack of personalisation, proactivity and clarity were largely driving the ratings down.
Concerningly, the current frequency of client communication was lower than at the start of the pandemic, despite the popularity of remote and digital communication that evolved through the pandemic via Zoom meetings.
Approximately 25 per cent of advisers reported communicating with their best clients 10 or more times a year, down from 33 per cent a year in 2019 before the pandemic.
This was to their detriment, as Business Health found firms that had more than 10 touch points per year with their best clients achieved 43 per cent higher profitability than less communicative firms.
If a firm queried whether 10 was over-communication, it recommended providing an opt-out option for clients so they could reach those who would be receptive to the contact.
With 55 per cent of clients aged over 60 and 48 per cent already retired in Australia, Business Health encouraged advice practices to review their communication programs in 2023.
“An effective communication program can increase client retention rates, increase referral numbers, and increase clients’ understanding and appreciation of the advice services they are receiving,” the report said.
To achieve higher communication levels, Business Health put forward the following recommendations:
- Use videos to educate clients on more complex financial issues;
- To prevent over-communication with clients, provide an opt-out option;
- Send personalised and relevant content to meet each client’s needs;
- Avoid technical jargon and acronyms, and include visual media such as graphs and charts;
- Turn to your own client base for feedback through surveys;
- Review your customer relationship management (CRM) so it is regularly updated and accurate at all times; and
- Create a calendar for your communications.
AUTHOR
Jasmine Siljic
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