December 16, 2010
The "Economics of Loyalty" survey is conducted every two years and aims to help financial advisors understand the importance of client engagement.
A research team from the Personal Financial Planning division recently revealed results from the 2010 "Economics of Loyalty" survey. The team consisted of associate professors Deena Katz and Sandra Huston, along with graduate student Shaun Pfeiffer, and worked in conjunction with Advisor Impact and Charles Schwab Advisor Services.
"Economics of Loyalty is a study that sheds light on the factors associated with higher levels of satisfaction and loyalty between clients and advisors," Pfeiffer said.
The survey is conducted every two years and aims to help financial advisors understand the importance of client engagement.
The final report is based on survey responses of roughly 1,000 clients at various financial institutions. The research team used various approaches to determine the drivers of client loyalty and satisfaction.
Pfeiffer said the results provide insight on the attributes of an engaged client, the underlying factors associated with referrals, and how an advisor can increase client engagement and future referrals.
Katz, who has twice been named one of Financial Planning magazine's five most influential people in the planning profession, said the survey reports demonstrate that when advisors move clients from 'satisfied' to 'engaged,' advisors can impact the overall profitability of the relationship.
"This year's study gets us closer to cracking the code to client satisfaction, client loyalty and client referrals," she said.
Pfeiffer said factors an advisor might focus on to create and sustain client relationships include:
Undergraduate and graduate degree programs in personal financial planning are registered by the CFP Board. Students graduating from a CFP Board-Registered Program are eligible to sit for the CFP® Certification Examination.Twitter
Sponsored by Charles Schwab Foundation, the first-of-its-kind program features curriculum from college students, professors and independent financial advisers.Twitter