Blog: When "Old Fashioned" Counts


Every day we are bombarded with the media spewing “the New Normal”…what will it entail?  What does it look like?  As much as I acknowledge some things will change as a result of the quarantine, that doesn’t necessarily mean that everything will change.  There are some standards that will remain the same or even become more important.  The expectations an investor has of his/her financial advisor will remain the same and adhering to those standards will increase the loyalty an investor has towards their financial advisor.

Why is loyalty important?  In our recent research, What Makes A Client Loyal?: Advisor Relationships and Client Loyalty, Spectrem found that loyalty results in clients that are more likely to make referrals, clients that will move if the advisor moves to a new firm, clients that will allocate a larger portion of his/her assets for the advisor to manage, and clients that will stay for a long time.  All of these attributes are critical for advisors who want to have a successful practice long-term.

And what makes these clients loyal?  Some very “old-fashioned” principles result in customer loyalty, including “good service”, “competent personnel” and “an absence of errors”. 


While investment return is important in developing loyalty, it is not as important as service-related issues or having an advisor that cares about their needs.  These factors do not differ significantly based upon wealth level, gender or age….although younger investors rate client appreciation events as being more important than older investors.

As the country moves into a post-quarantine environment, it’s important to remember to continue to reach out to customers.  Make sure their questions and concerns are being answered competently and quickly.  These “old-fashioned” customer service rules will continue to be part of the “New Normal”….whatever that may be.

If you have any interest in ensuring that your customers remain satisfied and comparing yourself to other financial providers, check out the Spectrem Gauge.