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Dr. Mark Sinclair
Dr. Mark Sinclair, Mentor Education

Survey warns advisers could lose client base.

10 December 2013
Salvador Saiz, CoreData head of advice, wealth and super.

CoreData’s Keys to Growth report, has found that financial advisers could lose a large chunk of their client base if new approaches to retention and lead generation are not implemented.

The CoreData survey which surveyed more than 1,500 advised and non-advised consumers in September, found that 30 per cent of Australians who currently have a financial adviser are at risk of the relationship ceasing.

Salvador Saiz, CoreData head of advice, wealth and super, has said that, “many Australian advisers are making the fundamental mistake of not keeping in regular contact with their clients”; with the report highlighting that frequency of contact with clients was listed as a major factor in the level of flight risk.

Saiz emphasised that
, “markedly improving client retention is as simple as picking up the phone and scheduling in a meeting, but we see that many advisers, especially those with high proportions of clients who are in danger of leaving are failing to do this.”

The reported also stated that the longevity of an existing advice relationship did not guarantee retention, with “close to one third of those classified at risk having been with their current adviser for the past 10 years”.

Unsurprisingly trust and rapport were highlighted in the report as more significant decision-making factors than fees, with two in three ‘bonded’ clients indicating they would not switch advisers if they were offered the same service for less money and 44.4 per cent of ‘at risk’ clients saying they would switch to an “adviser they could trust”.

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