Satisfied clients will kill your business
Posted March 27, 2007 10:51 by Hoard Client Systems CEO.
About Hoard Client Systems CEO
Hoard Client Systems CEO's affinity for investing and financial matters began more than 20 years ago when he began investing in the stock market through a class in high school. Now, in 2006, he is being looked to for his innovation in altering the efficiency in which financial professionals communicate with clients.
Hey everyone! Horsesmouth.com, which in my opinion should be one of the top resources of every financial adviser, had a great article about the power of handwritten notes by Jim Domanski. It's great to see so many top consultants like Jim Domanski and Sean Bailey are touting the handwritten note as both a client retention and referral generating tool.
Why should we worry about client retention? Man oh man, if you have to ask that question you need to pull your head out of the sand!! Study after study has shown that less than 20% of an adviser's clients are loyal! That means only 20% are going to give you referrals, are going to give you more money or are not looking from something better.
80% of you clients are satisfied and that is dangerous! Yes, you heard me, DANGEROUS! I have always been told that you should have satisfied clients, but what I didn't know was the mindset of satisfied clients. Satisfied clients are simply biding their time until they find something better. That means they are reading, listening and attending your competitor's seminars and when they find something better, they are going to leave.
Thank God that 99.9% of our competitors don't take much of an interest in their business or we could be in for some stormy times with our merely satisfied clients! But that also opens up a huge opportunity! What is it?
Over 80% of our competitor's clients are also merely satisfied. That means if their clients find something better, they will leave. Our best prospect is our competitor's best clients and they are ripe for the picking. We just have to give their clients something that would cause them to think that we were "something better." What is that?
What have all the studies shown that people want? I'll give $50 off their next mailing to the first person that answers this correctly.
Discuss
Comments
513 days ago Mike Finley wrote:
My guess is that clients want someone that is going to contact them. They want someone to take care of them and be someone they can trust. I've brought on a few clients recently who have told me exactly that. They said the only time their former advisor contacted them was when he was looking to make a sale. If it taught me anything it's that I need to stay in contact with my clients while making sure not to always contact them with financial touches. I don't want to give them a reason to look elsewhere and more referrals and more money wouldn't hurt either. Good article, thanks!
511 days ago Bruce Hartrich wrote:
People want to work with someone that they like and that they feel cares about them. THat is actually more important than how much money you are making them.
511 days ago seth greene wrote:
people want non financial related conatct
511 days ago Craig D. Wiggins wrote:
They just want to feel appreciated.
511 days ago george wrote:
response to question - someone to keep in contact with them and be available when needed
496 days ago C. J. McFarland wrote:
Contact from their financial advisor to show them that they care?
449 days ago kuphyg wrote:
Please, if you have free time, visit one website. I'd be grateful as once I applied at a website and got bad experience. The card didn't come, maybe even someone stole it from postbox. But my friend recommended another site he recently found. Please, tell me if I can apply for a good credit card at ?
438 days ago Husein wrote:
Sorry, I think another way!
517 days ago Sue McKinley wrote:
This is a great article about clients relationships. I always thought that my clients were satisfied - but now I know they want more. My answer is that they want someone to care about them as a client. If I do that I may even get a referral or two. Thanks.