Independent financial advisors face an increasingly competitive landscape. One of the biggest keys to success in this environment is differentiating your firm from others that offer similar services. Unfortunately, advisors aren’t always successful in effectively presenting true differentiation to their prospects and clients.
Are You Really Offering Great Service?
For example, “great service” is one of those features often claimed by financial advisors as a key differentiator. They may even make this a central part of their overall value proposition.
Despite the fact that nearly 75% of advisors claim to offer great service, the reality is that many fall short. According to a study conducted by Spectrem Group, the reasons most investors with a net worth of $1 to $5 million leave their financial advisors are service-related.
- The advisor doesn’t promptly return phone calls (61%)
- The advisor isn’t proactive about contacting the client (53%)
- The advisor doesn’t return emails in a timely manner (46%)
The key to client satisfaction and retention is to differentiate yourself by establishing an effective service model.
Defining Your Service Model
When it comes to great customer service, it really boils to one question: Do you make your clients feel valued? Everything else is noise. Even if you’re providing a good client experience, it may be worthwhile to review your current service model to see if there’s room for improvement.
The first step is to define what “great service” really means. Does it mean you return phone calls and email faster than other advisors? Handle paperwork more efficiently? Meet with clients more frequently? Provide coffee and donuts when clients visit? Try and gain a clear understanding of what your clients value most.