Planner client communication leaves a lot to be desired
Client communication is the most critical determinant in achieving client loyalty and satisfaction, although research shows it is still being neglected by planners, according to Fidelity Australia managing director Gerard Doherty.
Doherty said research shows advisers who make proactive and positive communication efforts with their clients suffer far less client attrition and prevent clients from making poor short-term investment decisions in terms of risk profile asset allocation.
However, he said Australian research also shows that investors believe client communication is one of the worst performing areas among financial planners.
“Research shows that the number of people seeking advice has fallen at a time when people need it the most, down by 215,000 clients in the year up the end of March 2009.
“The main reasons cited in the (CoreData) surveys for losing the clients were quality of advice and poor or infrequent communication.”
Yet other research, this time from US Financial Planning Association, shows 60 per cent of advisers in the US report winning business during the financial crisis on the basis of their communication skills, he said.
“At the same time, two-thirds of these planners said their new clients switched because they were not receiving the attention or level of services they expected from their previous adviser.”
Recommended for you
Advice firms are increasing their base salaries by as much as $50k to attract talent, particularly seeking advisers with a portable book of clients, but equity offerings remain off the table.
MLC Expand has appointed retirement specialist Andrew Long to work with advisers and licensees and drive growth for its recently launched retirement solution.
Despite banks largely having exited the industry, advisers under institutional licensees are least likely to switch while 26 advisers have been appointed to a licensee more than 10 times.
Insignia Financial has shared a progress update on the acquisition by US private equity firm CC Capital as well as the departure of a long-standing director.
