The Danger of a Satisfied Client

Would your clients say that you’re reliable and that they are “satisfied” with your services? Dr. John L. Evans, Jr. explains that in a highly competitive industry, being “satisfied” may not be enough.

What kinds of experiences do your clients have with you? Would they say that you’re reliable and that they’re satisfied with your services? If so, watch out. In a highly competitive industry, keeping a client “satisfied” may not be enough. Lack of conflict or complaints doesn’t necessarily equal loyalty. It could just mean the relationship is forgettable, and thus, vulnerable to disruption.

According to a study by Russ Alan Prince and David A. Geracioti, only 33.5% of “satisfied” clients and 13.4% of “moderately satisfied” clients said they would give their primary financial advisors additional investable assets. Yet 94.5% of those who identified as “loyal” said they were extremely or very likely to stick with their advisors.1

Think of your own experiences as a customer at a luxury restaurant, hotel, or department store. Chances are your mind jumped to interactions that were either extraordinarily good or extremely bad. But experiences that are just okay? Those typically rank low on recall.

What Are Your Clients “Saying” About You?

The quality of your relationship to each individual client matters more than ever. Today, 72% of online adults use social networking sites, with the 65+ population tripling in the last four years to 43%.2 Your clients talk, and now they can talk to hundreds and thousands of their peers at once. What do you want them saying about you?

Sending your client a signed holiday or birthday card is a nice gesture. But it’s also a predictable one, the “go-to” for any service professional. So think about your practice from the perspective of an outsider and consider creative and consistent ways to make positive impressions.

The Difference Between You and Everyone Else

According to Thomas Fross of Fross & Fross Wealth Management, one of the most successful independent financial planning firms in the nation, there is no silver bullet for client management and retention. Key to your success is varying your strategy based on how your client likes to be engaged. “Just as a balanced investment portfolio should include a variety of investments, a balanced practice management strategy needs to include multiple ways to engage clients and prospects. Different clients will respond to different actions,” Fross says.

Key to your success is varying your strategy based on how your client likes to be engaged.

However you choose to engage, there are three underlying principles that Fross recommends to help your practice stand out above the rest:

  1. Image Is (Almost) Everything. It isn’t everything, but it matters more than you might think. Think about how your image would be perceived by current and prospective clients. Do you exude professionalism? Having an office, wearing a tie and taking the time to craft a consistent personal brand are all important to your bottom line.
  2. Talk to Your Clients. Your clients need information and reassurance on an ongoing basis, especially in a volatile market. Make it a priority to engage in frequent and meaningful communication with investors. If you don’t, studies show that they will move on to an advisor who will.
  3. WOW Them. Do you make your clients feel special? Do you acknowledge them in unique ways? Average isn’t good enough. But when clients feel valued and important, they are more loyal and more likely to refer you.

Providing extraordinary service can also expand your client roster. According to the Prince and Geracioti study, those “loyal” clients provided nearly 12 referrals to their primary advisors, compared to just 2.1 from “satisfied” clients and 1 or fewer from “moderately satisfied.” So that time and effort spent going above and beyond truly pays off in more ways than one.

Driving Extreme Client Loyalty

In partnership with client experience expert and author Dr. Joseph Michelli, this program helps you systemize "WOW" across your practice – helping you cultivate loyalty among existing clients and attract new business.

The Art of WOW

  1. Prince, Russ Alan with Geracioti, David A. “Cultivating the Middle-Class Millionaire: Why Financial Advisors Are Failing Their Wealthy Clients and What They Can Do About It.” Wealth Management Press, 2005.
  2. Brenner, Joanna and Smith, Aaron “72% of Online Adults are Social Networking Site Users” Pew Research Center, August 5, 2013