Article by Christina
According to a recent survey by AFH Wealth Management, only 7% of clients are loyal to their financial advisor. The survey also found that 95% of clients don’t think that switching advisors is a hassle and that 75% would switch away from financial advisers who didn’t offer value for money.
AFH Wealth Management are a large firm with over 200 financial advisers nationwide and over £5billion in funds under management. Part of their successful business model is to buy up smaller firms and take over their client bases. This probably explains why their survey looked at how easily clients felt they could switch advisers and for what reasons.
The survey also found that the most valued characteristic for an advisor was honesty.
This research is interesting because it’s findings are the total opposite of our experience!
In the 10 years since Christina became a financial adviser, less than 2% of her clients have left to move to another adviser – that’s less than 10 people!
So, our experience is that 98% of our clients are loyal to their financial adviser – quite a difference. The honest way in which we’ve always presented our advice could well be a factor, but we would also consider the very personal service offered by a smaller firm to be equally as important.
Perhaps publishing details of customer loyalty rates would be a good way of providing prospective new clients of the type of firm they might be dealing with?
