Frequent Contact and Face-to-Face Meetings Critical to Client Retention

Clients who have not met with their adviser in the past 12 months are the most likely to leave their current advice relationship, the latest research from CoreData has found.

The researcher’s 2014 Keys to Growth Report found that nearly one in three Australians who currently receive financial advice are at risk of leaving their adviser. Those clients most at risk of leaving were identified as those who had not received any contact from their financial adviser or met with them in person in the last 12 months.

To determine the factors that impacted a person’s decision to leave their adviser, CoreData surveyed over 1,000 consumers, classifying them as ‘Bonded’, ‘Firm’, ‘Loose’ or ‘At Risk’. 57.1% of those classified as ‘At Risk’ said they had not met with their adviser in the last 12 months. 25% of those ‘At Risk’ said they had not received any contact at all from their adviser.

CoreData 2014 Keys to Growth Report

CoreData 2014 Keys to Growth Report

Further, half (50%) of ‘At Risk’ clients said they would switch for an adviser who is better to deal with personally than their current one, and one in three (32.1%) would move providers straight away if they were offered the same service for less money.

In contrast, 67.3% of ‘Bonded’ respondents reported having met with their adviser in the past six months, and two in three (67.3%) said they would not switch advisers even if they were offered the same service for less money.

Commenting on the report, Kristen Turnbull, Head of Financial Services at CoreData, said: “The focus is shifting in the industry from compliance and regulatory change back to soft skills and engagement. Compliance is a hygiene factor – clients want advisers that are personable and that they can relate to.”

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