Utilising data from 18 leading practices and 960 in-depth client interviews, the paper set out to address, ‘what do consumers value the most in their adviser relationship and how are the best practices meeting their clients’ needs?’
“The time is right to share the DNA of the best advisory practices in Australia and use these learnings to build a stronger, more robust profession,” AFA chief executive Richard Klipin said.
“Practices that follow the blueprint have enormous success with their clients, which translate into positive business outcomes for their practices.”
There were four key criteria by which clients assessed a practice therefore it was critical for advisers to build capabilities around them, the paper said.
Firstly, clients were looking for adviser qualities, which included the skills, confidence, capability and engagement of the adviser as well as creating a trusted environment.
The practice service proposition was also highlighted as a need, followed by the advice process and the practice charging model where there was a need for transparency and visibility of fees and value for money.
The study drilled down into pre-engagement, engagement and ongoing service, as well as addressing industry perceptions and negative media portrayals.
“As regulatory change makes advisers more accountable for the value of their advice and the service they provide, the best advisers are finding new ways to partner with their clients in more sustainable relationships,” the paper said.
“Consumers are very clear in their needs. Step up and meet these needs and your practice will prosper, fail to deliver and consumers will move on.”
The paper was conducted in partnership with the Beddoes Institute and Zurich Financial Services Australia.
