Doubling the amount of communication with top tier clients can boost financial planning principals’ profits almost twofold, BusinessHealth claims.
Average revenue per principal increased from $92,485 to $165,510 when financial advisers ramped up communication with clients from five times to 10, its research found.
In times of share market turmoil, major corporate failures, talk of recession and a new Federal Government, planners need an effective communication strategy Business Health principal Rod Bertino told InvestorDaily.
“Talk to your clients regularly. Advisers can’t overlook communication in times of volatile market conditions and uncertainty,” Bertino said.
“The biggest risk is that advisers assume a quiet client is a happy client.”
Business Health found financial planning principals that had a documented review process had an average of $174,604 revenue per principal.
This is compared to $71,066 average revenue per principal for practices that had none. Practice principals that formally ask for feedback can expect an average of $210,918 profit, compared with $126,437 for those that do not.
Business Health advises planners to mix up their contact methods, customise communication to the client’s circumstances, create a contact program, involve key staff with keeping touch with clients and survey customers regularly.
The above revenue per principal calculations assume a notional annual salary of $100,000 per principal.
