More Conversation, More Respect
How much do you respect the performance of your financial advisor?
How many times have you spoken to your advisor during the coronavirus pandemic?
It turns out there is a notable relationship between the number of times your advisor has contacted you and the way your respect level toward your advisor has changed during the two months of the coronavirus.
According to Spectrem’s three-month study of investor reaction to the economic impact of the coronavirus, most investors were pleased to receive communication from their advisor, and the more communication they received, the more pleased they were.
When it became clear the coronavirus was going to overwhelm the country’s health systems and economic situation, Spectrem began surveying investors about their concerns and attitudes toward the way the virus has impacted their net worth, as well as how their advisors have handled the matter with them. Corona Crash: What Advisors Should Be Saying To Investors Now determined that the more often an investor speaks to his or her advisor, the more respect that advisor gains from their client.
Perhaps the findings just make sense. But very often, performance impacts perception in subtle, subconscious ways rather than in obvious and outright changes in opinion.
During the first two weeks of April, investors were asked how often they had spoken to their advisor since the coronavirus first started impacting the stock market back in February. A separate question was asked of those same investors: has your respect for your advisor grown during the crisis as a result of the way they have handled client needs?
Overall, 42 percent of investors said their respect for their advisor had improved as a result of their communication during the first two months of the coronavirus pandemic. However, the more often an investor heard from their advisor, the more likely they were to say their respect had grown. Among those investors who had hear from their advisor twice during the coronavirus outbreak, 49 percent reported increased respect, and among those who had heard from their advisor three times or more, 54 percent reported greater respect for their advisor.
And among those investors who had not had a conversation with their advisor during the first two months of the pandemic, only 19 percent reported improved respect for their advisor. It is uncertain why their respect had grown in that situation.
For those investors who are satisfied with their advisor and his or her performance, how much of that satisfaction comes from consistent and timely communication? Spectrem research shows that often investors consider proper communication as more important than investment performance.
This coronavirus period gives advisors the perfect opportunity to showcase their attentiveness as well as their skills in handling client issues. How is your advisor doing in that regard?