According to a recent report by Jefferson National, a subsidiary of Columbus-based Nationwide, advisors are focusing on customer experience to retain clients, find prospects and thus increase their profitability.
In a survey of approximately 1,600 advisors and investors, researchers found that most respondents, 86 percent, believe that customer experience will become more important for attracting and retaining new clients in the next 12 months.
Client experience offers advisors an opportunity to add value to their firm’s offerings at a time when fee compression and regulatory pressures are constraining their ability to differentiate, said Mitchell Caplan, head of Nationwide’s advisory solutions business.
“To gain new clients and earn more of their business, putting the client first is not just a regulatory requirement, it’s a business necessity that is increasing in importance,” said Caplan in a released statement.
Advisors and investors in the study agreed that the two most important attributes of a successful customer experience are the quality of communication and establishing a personal one-on-one relationship.
Most of the participants in the study, 94 percent, believe that customer experience is important to their value proposition. The respondents most commonly say that this is because good customer experience improves retention and strengthens the overall advisor/client relationship.
Fewer respondents said that their current client experience differentiates themselves from competitors and attract new prospective clients.
Before client experience, however, Jefferson National believes that advisors must do more to establish trust in their relationships.