How loyal are your clients? You might be surprised. Only 57% of investors surveyed said their financial advisors were proving their worth, according to a recent report from Fidelity Investments.
Yet those "valued advisors" got a clear payoff from clients, Fidelity found: greater loyalty, triple the number of referrals, and almost 50% higher share of a client's investible assets.
What made clients satisfied? Three key traits were linked with being a valued advisor, the Fidelity research found.
1. Long-term planning:
The highly satisfied clients were more likely to have investors focused on long-term investment returns, the study found.
2. Comprehensive guidance:
Sixty-three persent of investors who had "valued advisors" wanted their advisor to know everything about their personal and financial lives. And while the numbers were smaller, more investors who valued their advisors (29%) said they wanted holistic financial guidance than investors without valued advisors (18%).
3. Smart technology use:
This was particularly important with Gen X and Gen Y clients, 55% of whom said technology enhanced their relationship with their advisors (versus 28% for older investors. (Younger investors were also far more likely to use social media, phones and tablets in their financial activities.) But even among the overall respondents, more than twice as many satisfied clients said technology had enhanced their relationship with their advisors.