Podcast Center
Video Center
Webcasts
Resource Center
Events
By 
July 13, 2023 at 01:56 PM
What You Need to Know
- In practice, the typical advisor gets referrals from fewer than 5% of their clients, Julie Littlechild says.
- Boosting clients' confidence and their sense of control over their money and helping them lay out a vision for life after retirement can boost referrals, the research suggests.
- Younger clients and those with higher financial literacy are likelier to recommend their advisors, the survey finds.
Nine in 10 clients say they are inclined to continue working with their current financial advisors, according to a survey released Thursday by Absolute Engagement.
At the same time, the survey, which was developed in conjunction with the Investments & Wealth Institute, found often-overlooked opportunities for advisors to bridge the gap between client sentiment and the level of service their clients receive. The survey found that only 35% of clients make referrals.
“Traditional metrics have been the cornerstone of advisor performance evaluation for decades, but they are based on lagging indicators,” Julie Littlechild, Absolute Engagement’s founder and chief executive, said in a statement.
“To deepen relationships and improve advice engagement, our industry must prioritize understanding and supporting client needs as the true measure of success. Advisors who prioritize supporting clients’ life goals, not just financial goals, are poised to thrive in the coming decade.”
Researchers collected investor data between April 20 and May 1 from 1,000 respondents, all of whom work with a financial advisor, meet specific household investable asset thresholds and have some involvement in financial decision making.
A Warning Light
The survey findings identified key factors that clients deem important, but which receive lower performance ratings.
Eighty-two percent of respondents said feeling financially secure was very important to them, but only 52% strongly agreed that they were indeed financially secure.
Similarly, although three-quarters of respondents said feeling in control when it comes to reaching their financial goals was very important, just half strongly agreed that they actually were in control.
And 74% of clients stressed the importance of confidence in reaching their financial goals, yet just 53% said they are confident they will do so.
Absolute Engagement’s proprietary Self-Confidence Index, which is integral to its annual survey, provides the industry and individual advisors with a snapshot of how clients are feeling about their financial future and where they may need support.
