"If you don't delight your wealthy clients, they'll shift their funds to other advisors. And if those advisors are any good, they already are pursuing the assets you manage."

World-Class Service

By John Bowen

Elite advisors today need every competitive advantage that's available to them. There are few advisors who would not benefit from moving their firms' service to a world-class level.

Reprinted from:

"World-class service" is more than just the feel-good catchphrase of the moment. At its heart, world-class service entails raising the bar to deliver a unique, memorable experience to each client—one that differentiates you and your firm in such a way that clients find unforgettable and competitors find difficult or impossible to match.

By creating processes that ensure a consistent, high-quality experience at every point of contact, you will evoke pure delight in your clients. Delighting your clients—particularly your affluent clients—pays significant dividends for your advisory business.

Why is world-class service so important? The answer is twofold.

First, you'll enjoy significant benefits if you do provide your clients with world-class service. World-class service produces more satisfied clients. That satisfaction provides you with tangible business benefits, including opportunities for cross-selling. Our research clearly shows that the vast majority of affluent investors want to work with advisors. They don't want to navigate the investment environment alone. By providing the world-class service these wealthy individuals are seeking, you'll be able to leverage fully the opportunities available today in the affluent market.

The value of highly satisfied clients goes beyond their capitalized revenue stream, however. Why? Because highly satisfied clients are more likely to provide you with copious referrals. World-class service can turn your own clients into your marketing apostles, which is an effective way for you to build your firm. If you have succeeded in delighting your clients, their first thought upon hearing someone discussing financial services is to refer you to that person.

Second, failing to provide world-class service to your clients opens the door for competitors. Putting it quite simply, you'll lose clients. High-net-worth investors typically have several advisors, which means that most advisors don't manage all of their clients' money. If you don't delight your wealthy clients, they'll shift their funds to those other advisors. And if those advisors are any good, they already are pursuing the assets you manage.

World-class service doesn't just happen, of course. It requires forethought as well as careful integration into your firm on every level. Recent research by CEG Worldwide has identified seven factors defining advisors who consistently maintain high levels of client satisfaction.

As you review these factors, compare the feelings of very satisfied clients with those who are very dissatisfied. You'll quickly see the key elements that lead to client satisfaction. Then use each of these seven factors as broad guidelines for ensuring overall client satisfaction.

The competence factor. Advisors managing investments for affluent clients are expected to be competent (defined as knowledgeable and experienced). So for this reason, even the investors who were very dissatisfied with their advisors were likely to rate them fairly high in the area of competence; 80.6 percent of very dissatisfied clients gave their advisors credit for money management expertise, which is nearly identical to the 80.9 percent of very satisfied clients who did so. Very dissatisfied clients did rate their advisors somewhat lower in the areas of confidentiality and knowledge about investments, but they still gave them relatively high marks.

Even though clients assume you will be competent, you still need to seize every opportunity to justify your clients' belief in your competence. Reprints of articles you have written, for example, will help reinforce your affluent clients' belief that you have the experience and knowledge to help them achieve their financial goals.

The hustle factor. It's commonplace for affluent clients to place a premium on hustle, also called "going the extra mile." Clients' views of perfectionism illustrate this point. Nearly 62 percent of all very satisfied clients consider their advisors perfectionists, compared to only 6.5 percent of very dissatisfied clients.

The key to high marks in hustle? Reliability. When you make a promise, keep it and keep it on time. Set a goal of providing perfect service, with plenty of attention to details.

The no-surprises factor. Wealthy clients hate unpleasant surprises—making it your job to prevent them. While more than half (55.3 percent) of very satisfied clients felt their advisors wanted to hear complaints and feedback, a mere 6.5 percent of very dissatisfied clients felt this way.

Likewise, clients want to see advisors use failures as opportunities to improve service by talking about the problem and discussing possible solutions. No very dissatisfied clients reported their advisors took this approach, compared to 38.3 percent of very satisfied clients.

To rate well with your clients in this area, actively solicit their negative perceptions. Doing so will help you to spot and head off problems and will clearly demonstrate to your clients your desire to serve them to the best of your ability.

The warmth factor. Responsiveness and sincere warmth are other important contributors to client satisfaction. Nearly three-quarters of very satisfied clients thought their advisors were very responsive, compared to less than half of very dissatisfied clients. Almost 65 percent of very satisfied clients described their advisors as "warm," compared to only 25 percent of all very dissatisfied clients.

Warmth and responsiveness are more than good manners and politeness (most clients believe their advisors are generally courteous). Affluent clients are looking for true emotional warmth. Keep this factor in mind as you make hiring decisions for the practice. If your staff (or you) needs help, consider attending workshops to improve interpersonal skills.

The first-to-know factor. Your clients want to be kept informed not just about developments in their portfolios, but also about important changes at your firm, especially among your staff. Make sure your clients learn about personnel changes from you—not by calling for a staff member who is no longer with you or by talking with a competing advisor (who may have hired them). As your staff members leave or are terminated, move quickly to introduce your new staff to your clients, positioning them as more-than-adequate replacements.

Very satisfied clients give their advisors high marks in this arena, with over 75 percent saying they provide information in a timely fashion and acknowledging any efforts to give regular briefings. Very dissatisfied clients scored their advisors poorly on the first-to-know factor, with just 19.4 percent feeling they received timely information from their advisors.

Affluent clients clearly want to be the first to know about such changes when they happen. So it's wise to incorporate tools into your client database that allow you to red-flag issues that call for you to contact clients.

The listening factor. Affluent clients want advisors who pay close attention to them. Listening skills, therefore, are another important element in the client-satisfaction equation. Among very satisfied clients, 82.6 percent agreed their advisors were patient and took the necessary time to explain issues, compared to 54.8 percent of very dissatisfied clients. Likewise, more very satisfied clients believed that their advisors spent enough time listening.

Advisors too often emphasize educating clients at the expense of listening to them describe their needs, fears, and wants. Your goal always should be to learn more about your clients—and listening is the way that you will do that.

The client-centered factor. Affluent clients want their advisors to focus on them and their individual needs. Your ability to convey to each client that you are striving to understand unique needs and provide individualized solutions is key to client satisfaction.

The survey numbers bear this out; almost 76 percent of very satisfied clients felt their advisors made a significant effort to understand their unique needs, compared to only 25.8 percent of very dissatisfied clients. It's also revealing that 75.3 percent of very satisfied clients said they received solutions that were well thought out and suited to their needs, far higher than the 41.9 percent of very dissatisfied clients who agreed this was the case.

Your clients represent a huge opportunity. Delight them, and they'll place more assets under your management and refer potential clients to you. The only way to maximize these opportunities is by providing world-class service.