Are your clients itching to leave?

July 26, 2012 | Last updated on July 26, 2012
2 min read

Markets are tough and you’re struggling to meet your bottom line, so the last thing you want to worry about is your book shrinking.

But, more than half of wealthy investors (60%) are considering firing their financial advisors within the next twelve months, says a survey called Why Investors Hire and Fire Financial Advisors by U.S. account aggregator ByAllAccounts.

“While it’s cause for concern that so many investors are considering leaving their financial professionals, it also creates a considerable opportunity,” says ByAllAccounts marketing vice-president Cynthia Stephens.

Read: Save an endangered client relationship

She adds, “The survey also indicates there are tangible ways advisors can better serve their clients, build relationships and establish loyalty.”

One way to build loyalty is by taking a holistic approach to managing clients’ assets; get their complete financial picture and play a larger part in their fiscal lives. You can not only handle their retirement plans and savings, for instance, but can also offer tax planning and other specialized services.

Investors with active advisors are more satisfied with the level of service they’re receiving and are more willing to offer their planner a referral opportunity.

Read: Look beyond the quarter-point return

The majority of clients who received extra services were also more likely to retain their advisors in 2012 (85%) than those who only receive limited help (15%). Since many are still “winning back losses from 2008 and suffering from a non-productive 2011,” they’re looking for extra support.

Advisors willing go the extra mile and develop strategies to maximize their value are coming out ahead of the pack, says Jack Waymire, co-founder of Paladin Associates, a business strategy firm in North Carolina.

Read: Decoding client behaviour

“The most successful will focus on improving performance, managing risk, controlling expenses, and providing high-quality communications that keep their clients fully informed,” he adds.

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One of the key takeaways of the survey is advisors need to break into or boost their the online and social media game. By creating an online presence, you can tell a broader audience about your experience, investment philosophy, ethics, and services.