Clients with higher household incomes are less satisfied with their advisers: Business Health.
Despite the seduction of large investable assets, many advisers have fallen short when it comes to satisfying high net worth clients, December figures from independent advisory group Business Health have revealed.
Out of approximately 40,000 client surveys, clients who earned an annual household income of $75,000 or more were less satisfied with their advisers' overall performance.
"Clients with this income were on average less satisfied with factors including how well their adviser understood them, the relationship they had with their adviser and their adviser's technical knowledge," Business Health partner Rod Bertino told InvestorDaily.
"They were also less satisfied with the range of solutions provided and how well their adviser implemented solutions, as well as the professionalism of the practice and the effectiveness of support staff, the review process and the communications delivered."
While statistics showed less than one in three clients earned a household income of above $75,000, Bertino said there were some key themes that emerged from the analysis.
"Higher income earners generally have much higher service delivery expectations," he said.
"They also tend to have a broader range of complex needs, which often calls for expertise that extends well past the traditional product offerings of many practices."
Bertino said a firm's reputation and positioning had also become increasingly important, as had the professionalism and assistance of all staff across the practice.
"Endorsements and testimonials from respected friends, family or colleagues are also incredibly important when dealing with higher income earners," he said.
According to Business Health, as the income and assets of clients did not always automatically translate into greater profits for advisory firms, those with greater incomes did not necessarily make for better clients.
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