Financial Services
Financial Advisers / IFAs
Effective management of client relationships provides financial advisory
firms with an opportunity to stand out from a crowded field of
competitors. It’s also a chance to improve profitability, competitiveness,
market position, and to reduce the cost of attracting new clients.
Numerous studies have shown how there is a clear link between the
level of service provided and profitability. Clients who are highly
satisfied are loyal and they are significantly more likely to repurchase
than clients who are merely satisfied. They are also more likely to
refer you to other clients and to help spread your reputation through
word of mouth. In addition, clients who are highly satisfied are less
likely to consider taking their business to the competition.
It has been shown that a 5% increase in client loyalty can boost profits
from 25% to 85%
(Source: James L. Heskett, Harvard Business Review, “Focussing on your customer”)
According to various estimates the cost to attract a new client
is five (or more) times the cost of retaining an existing client. By
managing existing client relationships and maximising the value of the
relationship throughout its lifecycle, firms can spend less time pursuing
new clients and therefore maximising the value and profitability of
each existing client.