9 Advisor Actions That Influence Client Loyalty

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Investors have a lot of choices when selecting a financial advisor, and even after they have done so, many receive solicitations to change advisors or consolidate their assets.

What keeps them from doing so, besides the hassle, is client loyalty, according to recent research from Spectrem Group. Client loyalty is critical for an advisory firm’s long-term success — loyal clients not only remain clients, but they also are more likely to move additional assets to that advisor.

Spectrem found that in addition to excellent investment performance and superior customer service, other factors can influence the advisor-client relationship. For instance, clients appreciate a personal touch — but not too personal. And while little details such as remembering a birthday or the names of your clients’ children can tip the scales, it’s still the business-related aspects that have the greatest effect on loyalty.

For its study, Spectrem fielded a survey in August to which 871 investors responded. All investors had net worth between $100,000 and $25 million, not including their primary residence, and were the household financial decision maker or shared jointly in the household financial decision-making.

See the gallery for nine factors that influence client loyalty, according to Spectrem’s research findings.

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