Spectrem Group’s research from its 2014 report Drivers of Client Satisfaction and Loyalty reveals that in most cases, a client’s satisfaction rating coincides with the amount of contact the client has with his or her financial advisor.
The survey measured the level of satisfaction, and asked many questions offering “very satisfied’’ or “satisfied’’ as a response (as well as levels of dissatisfaction). Among investors with daily or weekly contact with their advisor, 52 percent said they were “very satisfied’ with their advisor. The percentages dropped steeply for lesser levels of contact, to 44 percent for monthly, 39 percent for quarterly 28 percent for semi-annually and 19 percent for annually.
There is some responsibility that falls on the investor to let a financial advisor know what forms of communication and what timeline of communication is preferred. When an investor is looking for a new advisor, the manner and frequency of communication should be one of the topics brought up in an initial meeting.
Clients who have created a financial plan or a retirement plan with the help of an advisor report very high levels of satisfaction. But those plans are a fluid vehicle, and investors want to have them reviewed. Eighty-nine percent of investors who receive at least semi-annual review of financial plans are satisfied, while just 81 percent of investors who receive annual review are satisfied, and those who get reviews less often (or never) have only a 48 percent satisfaction rate.
For instance, among investors who have daily or weekly contact with an advisor, 84 percent report satisfaction with their advisor. That is much higher than the average satisfaction rating of 73 percent among all investors.
Investors who have contact with their advisor on a monthly basis report 82 percent satisfaction, while 81 percent of investors with quarterly contact are satisfied. The percentage drops significantly for investors with annual contact with their advisors, to just 57 percent. Among investors who do not receive regularly scheduled contact, satisfaction is just 30 percent.
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