Each year we ask high-net-worth investors how they feel about their advisory relationship. And each year we raise a proverbial glass to the industry, to toast the work that advisors are doing to achieve such strong results.

Our last study was no different. So breathe in the numbers, high-five whomever is next to you and feel good for a moment!

Ok, that’s enough of that. Let’s look deeper.

The industry data answers a specific question. How are WE doing? How are we, as an industry, doing in delivering a satisfying experience?  

The other, arguably more important, question is this. How are THEY doing? How are clients thinking and feeling and what support do they really need?

The data is clear. You cannot assume that you are fully supporting clients in what is most important to them, but rather you are delivering on their service expectations.

Focus on Confidence

To understand more about how clients are really feeling, we can look at a different metric - client confidence. The data shows that while things are relatively good, there are cracks in the foundation.  

Absolute Engagement’s Client Confidence Index is calculated for the industry, as well as for the firms with which we work and each of their individual clients. It’s based on responses to four key statements and provides a short-cut to how clients are feeling about the future.

In short, confidence is being tested.

The client confidence data highlights two important findings.

1. The opportunity. The overall data shows that client service is not a problem. There were no satisfaction gaps on a range of other metrics related to the service being provided (e.g., responsiveness, frequency of contact). Rather, the biggest gaps relate to how clients are feeling.  Even those with significant wealth, or with a documented plan, may still feel out of control or lack confidence in the future. Knowing that is a meaningful opportunity for advisors to add value, particularly if confidence differs within couples.
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2. The risk. Confidence is a leading indicator of risk and satisfaction is a lagging indicator of risk. The data tells us that confidence is correlated with satisfaction, loyalty and your Net Promoter Score. In short, as a client I may not blame my advisor for my lack of confidence today, but ultimately it will impact the relationship.  

Past, future and present

It's helpful to look at client metrics through the lens of 'time.'

Clients can feel satisfied with the service you have provided (in the past) and they can feel confident in the plan you have put in place (for the future). But that doesn’t mean they feel calm or in control in the present. 

Because we are human, believing that things will work out in the end doesn’t mean we can sleep tonight. When it comes to supporting your clients, the ‘now’ matters as much as the ‘then and the when.’

Focus on Concerns

That leads us to another critical data point, one that provides deeper insight on the true needs of your clients – their concerns. When asked to rate their level of concern on a range of items, five challenges rose to the top. Each of the ratings below is an average score out of 5, with 1 being 'not at all concerned' and 5 being 'very concerned.'

And while it might be tempting to look at the averages and feel reassured, the averages can be misleading. Averages mean nothing when it comes to understanding the individual needs and concerns of your clients.

If, for example, you look at the percentage of clients who indicated they are ‘very concerned’ on a range of issues (below) you’ll notice that there is no clear ‘winner.’  While the average rating on ‘ensuring my children make good financial decisions’ is a moderate 3.4, it’s actually a 5 out of 5 for almost a quarter of clients. And that’s all that matters.

1. The opportunity. By capturing data on the concerns of clients, in real time, you can focus on the things that matter and make a meaningful difference in their lives.  That data allows you to focus conversations on the things they need to talk about, rather than the things you want to talk about.
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2. The risk. If you focus only on satisfaction and confidence you may miss lurking risks associated with concerns. What clients are feeling today can create an obstacle to taking action in the work you are doing together – and they may not even realize it’s happening.  

Data on concerns matters because it gives you a read on the ‘here and now’ and provides context for client behaviors. Concerns tell you what is really on my mind and if and how that differs from what is on the mind of my partner or spouse. Concerns are what keep us up at night and get in the way of good intentions in an insidious way.

What about YOUR clients?

Industry metrics are interesting but mean little when it comes to impacting the lives of your clients.

• Understanding satisfaction, confidence or concerns at an industry level is intellectually interesting.
• Having that data across all of your clients will let you know if there are issues with the experience you are delivering. 
• But having that data for each client – separately within couples - is the key to driving deeper engagement.

As an industry, we love data. But don’t fall into the trap of believing that industry, or team-level, insights are enough to take meaningful action.

Thanks for stopping by,

Julie

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You’re invited!

Recently Absolute Engagement launched a free trial of the Engagement Engine. If you’re interested in capturing meaningful data on the true needs of clients, this is an opportunity to ‘dip your toe in the water.’  

To learn more, you’re welcome to join a 30-minute webinar to walk through how the free trial works.

Date: March 12 OR March 20

Time: 2:00 – 2:30 ET OR 1:00 - 1:30 ET

Register here and choose the date that works best for you.

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