Driving Growth By Valuing Clients

Whether Clients Feel Valued Is The Top Factor In Their Advocacy And Promotion Of Your Firm
Chris Manker, Founder, NEXA Insights
Chris Manker, Founder, NEXA Insights

Making clients feel valued is a cornerstone of a successful business strategy in any industry, but it is even more essential for advisors looking to foster organic growth. For clients, feeling valued goes beyond merely being satisfied with an advisor’s service or investment performance. It’s the culmination of the whole experience they receive from the firm.

So, do your clients feel valued? How can you find out? The most direct and effective way is to ask them directly, and the best method to do that is a client survey. These surveys provide a clear picture of client satisfaction and can pinpoint areas where your service excels and where there is room for improvement.

As the founder of NEXA Insights, I have overseen client experience surveys for thousands of financial advisors. Our methodology is rigorously data-driven, grounded in comprehensive analytics derived from the responses of tens of thousands of clients. Over the years, we have assessed a broad spectrum of client experiences, ranging from glowingly positive to overwhelmingly negative.

The most prevalent factor influencing advocacy and satisfaction is whether clients feel valued.

Chris Manker, Founder, NEXA Insights

We assess the primary factors driving advocacy and satisfaction in each survey. The most prevalent factor influencing advocacy and satisfaction is whether clients feel valued, with 59% of surveys identifying this attribute as a key driver.

What Clients Say About Feeling Valued

Over 7,000 clients with average investable assets exceeding $2.7 million have shared their experiences of feeling valued during the last six months. These success stories, which are likely to resonate with you, highlight the common and likely unsurprising themes that we have seen emerge from this feedback:

  • Personal attention and service: Clients appreciate personalized attention and service tailored to their needs.

  • Advisor relationship: The relationship with their advisor is crucial. Clients value the connection and trust they have with their advisors.

  • Responsiveness and availability: Clients feel valued when their advisors are consistently available to answer questions and provide support.

  • Comprehensive service: Inclusive service offerings that address multiple areas of their financial lives add value to the client experience.

However, there are a number of additional factors influencing whether clients feel valued, including:

  • Advisor and team dynamics: The collective efforts and support of the entire advisory team, including you, not just their primary advisor, allow clients to build a connection with multiple team members. This exposes them to the broader support system within the firm, making them feel more valued.

  • Communication and listening: Clients highlight the importance of effective communication and the advisor’s ability to listen to and address individual concerns.

  • Understanding and trust: Clients feel valued when their advisors take the time to understand their needs and goals. This not only provides them with a sense of being valued but also builds trust in the relationship, which is crucial for client retention and advocacy.

  • Personalized advice and plans: Clients appreciate customized advice and tailored financial plans, making them feel as though they have been individually catered to.

  • Goal-oriented guidance: Because it further fosters an individualized experience, clients feel valued when their advisors help them set, track, and achieve their financial goals.

Personalized, timely and trustworthy advice; effective communication; and relationships with the entire advisory team greatly enhance clients’ feelings of being valued.

From Value To Growth

How does that feeling of being valued impact growth?

After analyzing over 40,000 recent client responses, we found that 81% of clients fully agree with the statement, “I feel as though I am a valued client of [advisory firm].”  The critical question then becomes: How many of these clients are actual advocates?

How many of these clients are actual advocates?

Chris Manker, Founder, NEXA Insights

Among those who fully agree that they feel valued, 97.3% are promoters based on their Net Promoter Score (NPS). In comparison, for clients who disagree that they feel valued, only 5% are willing to promote the firm. This significant gap underscores the strong correlation between clients’ feelings of value and their propensity to recommend their advisors.

But are these promoters actively making referrals?

Data shows that 38.3% of clients who fully agree they are valued have referred someone to their advisor’s firm in the past 12 months. Those individuals represent 86.6% of all clients who indicated they had made a referral. In stark contrast, those who disagree represent just 1% of the total clients, indicating they made a referral.

Clients who feel valued are nearly four times more likely to be advocates for your firm and nearly seven times more likely to be actively referring your services compared to those who do not feel valued.

Ensuring clients feel valued isn’t just about providing excellent service – it’s a strategic approach to growing your business.  It fosters client loyalty, encourages active referrals, enhances your firm’s reputation and provides a competitive edge. By prioritizing client value, you can create a cycle of satisfied clients who advocate for your firm, leading to sustainable growth and success. This is not just a theory but a proven strategy that has worked for numerous financial advisors.

The cycle starts with understanding whether your clients feel valued.

Chris Manker, Founder, NEXA Insights

And the cycle starts with understanding whether your clients feel valued. By actively seeking feedback and gauging client satisfaction, you can identify areas where your service excels and where there is room for improvement. Proactively engaging with your clients to ensure they feel valued strengthens client relationships and has incredible potential to drive business growth.

Chris Manker is Founder of NEXA Insights.

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