Poor face-to-face contact could see clients flee

Almost one in three clients are considering leaving their adviser, with a lack of face-to-face contact often the kiss of death, a survey found.  

More than half (57 per cent) of the surveyed clients who were 'at risk’ of leaving their adviser last met with them more than a year ago, the research from CoreData suggested.  

Meanwhile a quarter of those thinking of leaving had had no contact at all for more than a year.  

The survey of more than 1000 planning clients and prospective clients sectioned interviewees into four categories - bonded, firm, loose and at risk.  

In contrast to 'at risk’ clients, the vast majority (95 per cent) of 'bonded’ clients had been contacted by their adviser in the last six months, with two thirds (67 per cent) meeting face-to-face.  

CoreData said those in the 'at risk’ category represented an opportunity for advisers, who could either retain clients who were contemplating abandoning advice, or capture clients looking to switch from other advisers.  

Advisers with good interpersonal skills are best equipped to grow their client base, the report found, with half of at risk clients and a third (33 per cent) of loose clients citing this as a reason they would switch.  

“The focus is shifting in the industry from compliance and regulatory change back to soft skills and engagement,” Kristen Turnbull, head of financial services at CoreData, said. 

“Compliance is a hygiene factor - clients want advisers that are personable and that they can relate to.”