Communication is one of the keys to any human relationship, but there is a difference of opinion as to how much communication is enough communication.
Spectrem’s Ethnic Segmentation Series studied the attitudes and concerns of affluent investors from three different ethnic segments - African-American, Hispanic and Asian – and asked them how much communication they want with their financial advisors.
The results indicated that the highest percentage of affluent Hispanic (33 percent) and Asian (35 percent) investors receive quarterly communication from their advisor. Twenty-nine percent of African-Americans only get annual communication from their advisors.
Interestingly, 10 percent of African-Americans and 9 percent of Hispanics and Asians never receive regular scheduled communication from their advisor.
But the research showed that a higher percentage of each segment would prefer at least quarterly communication from their advisor. Approximately one-third of each segment are willing to wait for semi-annual or annual communication.
A different topic is timely communication when the conversation is started by the investor. Asked how long they are willing to wait for a return phone call form their advisor, ethnic investors were far less patient than other investors. While 7 percent of non-ethnic investors said they wanted a call back within the hour, 18 percent of Hispanics, and 14 percent of African-Americans wanted that phone call returned quickly.
Hispanics, apparently, are the least patient of the bunch. Only 23 percent of affluent Hispanic investors said they were willing to wait until the next day to get a return phone call, compared to 38 percent of Asians, for example. Forty-four percent of non-ethnic investors are willing to wait until the next day.
The same is true when expecting a return email. Forty-three percent of Hispanic investors expect a return email within two hours of sending the initial request for information. Only 20 percent of African-American investors are that anxious.
African-Americans are also more willing to accept an answer from anyone in the office rather than their own specific advisor. Sixty-seven percent of affluent African-Americans said it was acceptable to hear back from anyone representing the advisor, while only 48 percent of Hispanic and Asian investors were as accommodating.
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