Regular Contact is the Right Touch
A recent insurance marketing survey determined that 40% of investors who are dissatisfied with their financial advisor said that the number one reason was because the advisor didn’t stay in touch. In a related study, a whopping 72% of those who made the decision to leave their advisor for a competitor cited broker “indifference” as grounds for change.
Survey Says: Client loyalty is the lifeblood of any business and requires regular communication on the part of the advisor, which is the key to any lasting and successful relationship.
Studies show that the vast majority of unsatisfied customers will never come right out and tell you that they’re unsatisfied. They simply leave quietly, later telling everyone they know not to do business with you. And consider the following:
- Repeat business premium averages 33% more than first-time premium.
- Referrals among repeat customers are 107% greater than non-customers.
- It costs six times more to sell to a prospect than to a client.
- It costs thirty times less to maintain a current client than to acquire a new one.
So what can you do now to give your clients the service they deserve? Greg Woodbury of San Diego-based Emerald Publications, a twelve-year veteran in the client communication industry, is a firm believer in an educational approach to client contact because it greatly enhances an advisor’s professional image while satisfying the client’s thirst to stay informed. He says that “a mix of conventional and state-of-the art electronic methods gets the best results; all can be completely automated, and they have never been more affordable.”
Woodbury suggests the following must-haves for advisor success:
Pre-loaded sites are available that contain a wealth of financial updates, newsletters, research articles, financial calculators, market watch indices, and more.
A monthly stream of valuable information establishes you as a valuable information source. Pre-written formats are available, you choose the design, content, and be sure to include your photo.
Delivery can be set up to run on auto-pilot and can be as simple and inexpensive as periodic emails or, for a slightly higher cost, direct mailings.
Follow-up calls show genuine appreciation and gives you a chance to answer questions and ascertain current needs.
Woodbury stated that “it takes a minimum of 12 – 15 communications a year to keep clients informed and happy” and that thousand of advisors nationwide agree that “happy clients have its rewards in knowing that in addition to repeat business and countless referrals; you have really established yourself as a valuable information resource to your community.”
So think back. During your initial sales process, did you promise to keep your client “informed” and that you’ll “stay in touch”? Maybe it’s time to keep your promise and put your money where your mouth is. Feedback says that it will be money well spent.
Published in: Senior Market Advisor Magazine - December, 2005 — SMA Website
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