Advisor practices that are focused on a client-centric experience not only have median client sizes that are 93% larger, they also have lower attrition rates and the ability to move upmarket.
New research from Cerulli Associates in its U.S. Advisor Metrics 2018: Reinventing the Client Experience report finds that focusing on providing exceptional client experiences not only provides intangible benefits, such as increased trust on the part of the client, it also pays off in more practical ways.
What makes a client-centric practice? Cerulli cited “technology-driven client segmentation, intergenerational engagement within a team-based model, client appreciation and holistic perspective.”
Client-centric advisors recognize clients’ key life events, commemorate and celebrate their milestones, and host appreciation events, Cerulli says. “It is often the unexpected moments of delight, kindness or thoughtfulness that elicit trust and engender loyalty from clients,” according to the report.
In a time of heightened competition and greater client awareness and concern over fees, the report says, advisory firms have to reinforce their value proposition with existing clients — and focusing on the client is one way to do that while reaping both tangible and intangible benefits.
According to the research, advisory focus on the client experience results in a 93% higher median client size, compared with the industry average of more than $500,000.