Few Wealthy Clients Loyal to Their Advisers

Less than 12% off affluent investors responding are loyal to their advisers, according to a survey from Janus Labs, in partnership with private wealth industry expert Russ Alan Prince.

The survey of more than 900 affluent investors also revealed respondents do not consider investment performance as important as client experience to successful adviser relationships, and they only hold advisers accountable for things they can control, according to a Janus Labs announcement.

Survey respondents said loyal clients:

  • Give more assets: 8.7% more,
  • Provide referrals: 4 times more,
  • Take away fewer assets,
  • Take money from other advisers first, and
  • Receive non-traditional services.

Based on the survey responses, Janus Labs developed a detailed model of the 5-Star Client Experience. The five critical elements of the model include:

  • Investment Approach: The strategy used to help clients achieve their financial goals is very important to building a loyal affluent clientele.
  • Investment Responsiveness: The degree to which an adviser communicates with clients about financial events that could impact their portfolio holdings is another key factor in building client loyalty.
  • Rapport: A tactic that clearly distinguishes investment advisers is their ability to explain investment ideas and concepts to their affluent clients.
  • Professionalism: The extent to which investment advisers are in contact with their affluent clients to discuss investing, as well as non-investment issues, is a major contributor to those clients believing their investment advisers are professional.
  • Added Value: Non-investment offerings can create a deeper and more meaningful bond between an adviser and affluent clients.

More information about Janus Labs and their client model is at https://ww3.janusintech.com/januslabs/jlabs?command=staticPHome.