Financial advisors are in demand during these challenging times but adapting client service is vital to ensure ongoing loyalty
Helping clients navigate the uncertainty of the coronavirus pandemic is the focus of all financial advisors but a new report says there is a looming loyalty crisis.
That’s because these unprecedented times are causing investors to ask a lot of questions, including whether their FA is providing the advice and guidance they need to get through this.
The Investments & Wealth Institute research was conducted in mid-March among 750 US investors who work with an advisor.
While 81% of respondents said that they need to feel confident that their FA is putting their needs first when making recommendations, just 63% completely agreed that this was happening.
Although FAs are working harder than ever to ensure that clients are well-placed to navigate the current challenges, the perception of clients is key to a positive ongoing relationship.
The study shows that clients need reassurance in several areas including the long-term performance of their plan or portfolio, good value for their fees, and the level of risk in their plan or portfolio.
In control
The research highlights that clients want to feel financially secure, in control of their financial goals, able to reach those goals, and have a plan in place to do so.
“Advisors cannot impact world events or the markets, any more than their clients can. Advisors can, however, help clients to feel more in control and more confident in their own abilities. And they can ensure the plan is both clear and communicated. At a time when things feel out of control, advisors have a unique opportunity to raise the collective level of confidence among their clients,” said Julie Littlechild, Founder and CEO of Absolute Engagement, and author of the Investments & Wealth Institute-commissioned research.
What can FAs do?
The research points to several levers that FAs can pull to help clients feel more confident and secure:
- Focus on goals
- Deliver on core expectations
- Communicate their offer and value
- Provide meaningful advice
- Enhance reviews
- Go beyond investments
Boosting a sense of control and confidence in clients should be the goal of FAs right now.
“The world is navigating through unique challenges and rapidly emerging norms, and investor needs are significantly different today than two months ago, with investors making changes in their lives and businesses. What does this mean for advisors? It means that the current environment is one of the most significant threats to businesses and one of the greatest opportunities to provide clients with meaningful support that goes beyond investments and planning,” said Sean R. Walters, CEO of the Investments & Wealth Institute.
The full report is available at investmentsandwealth.org.
