What Makes Clients Loyal?


While great investment performance and superior customer service undoubtedly make customers loyal, are there other factors that impact the advisor-client relationship?  How important are the personal touches that advisors may bring to the overall relationship?  Spectrem Group recently conducted research with investors with $100,000 to $25 million of net worth (not including the value of their primary residence) and found the following:

  • Understanding risk tolerance and responding quickly to phone calls are two of the most important factors that increase client loyalty.
  • Advisors that provide comprehensive wealth management are more likely to engender deeper client loyalty.
  • Small touches such as remember family birthdays, asking about work or children, and discussing aging parents can also strengthen relations.  Only 20% of investors want their advisors to have no connection to their personal life.

The following is a detailed breakdown of factors that can influence loyalty.

Client loyalty is critical for long term success.  Not only do loyal clients remain clients, they are also more likely to move additional assets to the advisor for whom they have the greatest loyalty.