Fifty-three percent of clients rate their advisor a nine out of 10 rating in “overall level of satisfaction, according to a new study, from Advisor Impact, Charles Schwab Advisor Services, and researchers at Texas Tech University.
The 2010 “Economics of Loyalty” survey shows that client loyalty, however scores a bit higher, with 74% of clients “extremely likely” stay with their current advisors for the next year. Most clients, 88%, have not “considered switching.” But having a client bestow the utmost honor of a referral eludes most advisors—only 29% of clients have referred someone to their advisor in the past year—even though 91% are “somewhat or very comfortable providing a referral.”
Not Making Referrals
“What the study found is that while the numbers are positive, there is a clear disconnect between satisfaction, loyalty and referrals,” Julie Littlechild, president and founder of Advisor Impact, said in the announcement on Wednesday.
Of note, the survey includes opinions of more than 1,000 investors, but does not differentiate between customers of broker-dealer reps, and clients of investment advisors, planners, etc. When asked why there was no information on which kinds of intermediaries investors were dealing with, Littlechild (left) said in an e-mail interview with AdvisorOne: “we run into problems getting accurate information from investors as to which channel they are actually in. Strange, but there are many inconsistencies in the reporting on that (e.g. I work with an RIA and the firm is Smith Barney etc.).”