Seeking feedback to boost client retention
The Financial Advice Association Australia (FAAA) has emphasised why seeking feedback is critical to retain and strengthen client relationships.
According to Business Health, reaching out to clients for feedback has fallen down financial advisers’ priority lists, with just 26 per cent of firms actively seeking feedback.
“A quiet client isn’t necessarily a happy client. While too few practices actively seek their clients’ feedback, those who do make the effort are invariably rewarded with insightful comments and suggestions,” the firm said last month.
Echoing this, the FAAA has recently highlighted client feedback as a key driver of success and growth within an advice business.
Whether it be through regular online surveys or less structured in-person conversations, it is important for advisers to hear what they are doing well at, while also identifying areas where they may be falling short.
“Delivering a positive experience is one of the most important client retention tools financial advisers have, and requesting feedback regularly keeps you aware of trends within your client base. Feedback helps financial advisers improve their client services and can provide powerful validation for an adviser’s work and strengthen client relationships,” the FAAA said.
Once receiving feedback from clients, the industry body encouraged advisers to implement changes to directly address clients’ concerns or complaints.
“This gives the firm the opportunity to correct any problems before they impact client satisfaction levels and revenue,” it said.
In conversation with the FAAA, Andrew Saikal-Skea, financial adviser and founder of Saikal-Skea Independent Financial Advice, explained how he approaches client feedback in his practice.
“I ask clients two questions: firstly how they feel and secondly, if there’s anything they would like us to do or change. In my experience, the response to the question ‘how do you feel?’ is useful as it goes beyond the strategy and logic of our advice to the core difference it is making to clients. If clients feel uneasy about something or aren’t completely happy, you can address it immediately both for them and potentially the wider practice,” he said.
As a smaller business, Saikal-Skea and his staff can then respond to client feedback swiftly to continuously improve the advice service offering they deliver.
Speaking on a webinar in May, Business Health principal Tony Stephens said that clients often won’t provide feedback to their adviser unless they are directly asked to.
“Clients like their adviser, so they are not necessarily willing to provide any constructive criticism. The reason clients don’t provide that feedback is because they’re not asked enough,” he said.
AUTHOR
Jasmine Siljic
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