A study carried out by Spectrum Group (a consulting & market research firm based in US) and Vanguard shows that there is a strong correlation between the frequency of client contact and the level of client satisfaction.
The study shows that clients who were contacted at least once per quarter are likely to be more satisfied with the services of their advisor. “Of respondents using an advisor, those who were contacted at least one per quarter were much more likely to rate their satisfaction with that advisor. Also, these set of clients have rated their advisor’s expertise as very good or excellent. Though higher ratings invariably grow more likely as contact grows more frequent, the most striking divide is between those clients who are contacted at least quarterly and those who aren’t,” says the study.
This study was conducted online by interviewing 1,500 mass affluent, 1,000 millionaire and 500 ultra-high net worth US households in 2014.
Further, the study finds out that very few advisors contact their clients on a regular basis. “Although quarterly contact is considered a standard practice, a surprising number of affluent clients said they hear from their advisors less frequently. Among millionaire respondents, 37% said their advisors contacted them semiannually, at best,” says the study.
The study recommends advisors to make contacting clients an integral part of their business. “Make it your policy to contact clients quarterly. It doesn’t need to be lengthy interaction, and it doesn’t need to be about a client’s portfolio. Even a quick phone call or email goes a long way toward letting clients know that you’re continually looking out for them and that they haven’t been forgotten. Consider keeping a list of important client dates - anniversary, new job, birth of grandchildren - and schedule outreach efforts around them. If you have the resources, you may want to dedicate a staff member to keep track of client requests and handle the administration surrounding ongoing outreach,” suggests the study.
