{"id":7267,"date":"2010-08-04T07:58:20","date_gmt":"2010-08-03T21:58:20","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=7267"},"modified":"2020-07-22T09:30:16","modified_gmt":"2020-07-21T23:30:16","slug":"link-between-seeking-client-feedback-and-increasing-profitability","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2010\/08\/04\/link-between-seeking-client-feedback-and-increasing-profitability\/","title":{"rendered":"Link Between Seeking Client Feedback and Increasing Profitability"},"content":{"rendered":"

Advisers who ask their clients for feedback generate much higher profits for their business,\u00a0according to practice management group, \u00a0Business Health<\/a>.<\/p>\n

Detailed in Business Health’s Future Ready IV Report, the firm highlights the importance and value to the adviser of:<\/p>\n

    \n
  1. Seeking feedback from clients<\/li>\n
  2. Regular contact with A class clients<\/li>\n<\/ol>\n
    …\u00a0less than one third of Australian advice practices say they have a structured approach to asking for client feedback<\/h6>\n

    According to Business Health, less than one third of Australian advice practices say they have a structured approach to asking for client feedback.\u00a0 But those practices that do\u00a0have a mechanism for formally seeking client feedback generate, on\u00a0average,\u00a0a 74% increase in bottom line profit.<\/p>\n

    In dollar terms, this increase\u00a0equates to an average annual profit per principal leaping from just under $300,000 for those practices who do not formally seek client feedback to more than $520,000 per principal\u00a0for those who do.<\/p>\n

    In addition to the financial benefit associated with seeking client feedback, Business Health also reports a clear link between bottom line profits and the frequency of contact with A class clients.<\/p>\n

    By examining the profitability of advice firms in\u00a0its Australian HealthCheck database,\u00a0Business Health has shown that those practices who contact their best clients more than ten times each year can\u00a0earn, on average, almost four times more profit.<\/p>\n

    Business Health notes that ‘contact’ can be:<\/p>\n

      \n
    • Written<\/li>\n
    • Electronic<\/li>\n
    • Telephone<\/li>\n
    • Group functions<\/li>\n
    • Face to face interviews<\/li>\n<\/ul>\n

      Practices who report less than five contacts with A class clients each year experience an average profit per principal of around $115,000, contrasted with\u00a0an average profit of\u00a0almost $444,000 for advice firms that contact their A class clients more than ten times in a year.<\/p>\n

      Business Health also reports a direct link between client communication and referral business.\u00a0 It says that where clients\u00a0give the communication they receive from their adviser a high rating, they are in turn far more likely to have already referred new clients to the business and are much more likely to do so again in future.<\/p>\n","protected":false},"excerpt":{"rendered":"

      Advisers who ask their clients for feedback generate much higher profits for their business,\u00a0according to practice management group, \u00a0Business Health.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-7267","post","type-post","status-publish","format-standard","category-general","headers-new"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/7267","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=7267"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/7267\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=7267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=7267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=7267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}