You might think you are doing a bang-up job in client service, but a new report suggests otherwise. The J.D. Power and Associates 2011 Canadian Full Service Investor Satisfaction Study has found satisfaction, loyalty and confidence in full service investment firms have declined.
Overall satisfaction with full service firms averages just 733 on a 1,000-point scale in 2011, down two points from 2010. Satisfaction hit an all-time low of 693 during the downturn of 2008 and 2009, coinciding with investment losses. But the current average satisfaction score is well below that of 2007, when the average was 763 points.
The survey results suggest pro-active communication is falling short of client expectations: 65% said they had not been contacted by their firm during the past 12 months about product or service offerings.
“Communication is key in fostering a healthy advisor/client relationship,” says Lubo Li, senior director and leader of the financial services practice at J.D. Power and Associates, Toronto. “Advisors who are not only proactively reaching out to their clients, but also having important discussions regarding their risk tolerance, investment performance, and a strategic plan, enjoy the highest levels of satisfaction and loyalty.”
Roughly 40% said they had not had a discussion on risk tolerance and nearly 30% failed to properly explain the reasons for their portfolio performance in the past year.
Wellington West Capital ranks highest in overall investor satisfaction, with a score of 777, followed by RBC Dominion Securities Inc. (755) and Raymond James Ltd. (745).
The 2011 Canadian Full Service Investor Satisfaction Study is based on responses from more than 5,600 investors who use advice-based investment services with financial institutions in Canada. The study was fielded in May and June 2011.