Blog: Increasing Share of Wallet


In Spectrem's Research, What Makes A Client Loyal?: Advisor Relationships and Client Loyalty, Spectrem found that investors gave the largest percentage (66%) of their assets to their primary advisor to manage.  This was especially true for those who have longer relationships with their advisor.

Why do investors give most of their assets to their primary advisor to manage?  For more than a third of investors (37%) they have experienced good returns and see no reason to use multiple advisors.  Just over a quarter of investors (26%) indicate they have a strong sense of loyalty to their advisor.


Seventeen percent of investors indicated that it is easier to consolidate all of their accounts in one place while the same percentage indicated that their advisor has all of the products that they need.  It’s important for advisors to note, however, that these investors can be swayed by ease and the range of products available.

For those investors who do not have the majority of their assets with their primary provider, the most common reason is that the investor does not want all of their assets with one advisor (58%).  Only 19% indicate that they want specialized products and services that their advisor doesn't offer.  Importantly, 12% of investors indicated that they just haven't taken the time to consolidate their assets with one provider.  Eleven percent of investors indicate that they like to have more than one advisor so they can be compared against each other.

What does an advisor need to do to ensure that they continue to increase share of wallet?


1.     Customer service and responsiveness are the most important factors in ensuring customers stay with an advisor and refer the advisor to their friends and family members.

2.     Be sure to ask investors about assets that you are not currently managing.  For many individuals, they simply haven’t taken the time to consolidate assets.  Make sure investors understand that it is critical for their advisor to be aware of outside assets so that they can provide an appropriate allocation strategy for those investments that they do manage.

3.     Encourage investors who do not currently have a financial plan to develop a long term plan.  As investors gain trust in an advisor and share more of their goals and fears, they are more likely to increase the amount of assets managed by that advisor.


Increasing share of wallet allows advisors not only to become more successful on their own practice, it often provides greater security and comfort for investors as they realize someone is looking out for their assets in methodical and consistent manner.


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