Wealthy Clients Want More Than Returns

Wealthy Clients Want More Than Returns

Over the last couple of years, high-net-worth investors have been enjoying pretty healthy returns.

You’d think this would make them happy with the service provided by their financial advisors. A survey conducted by Capgemini for 2018 suggests otherwise – indeed, by their measure, financial advisors haven’t even earned a passing grade: customer satisfaction levels in 1Q just managed to exceed 60%, around ten points below a ‘pass’.

You’ve likely heard of the phenomenon wherein advisors are blamed when investments go sour and uncredited when returns are strong: a good portfolio performance is often linked to sanguine market conditions. They just can’t win, it seems. In this case, Capgemini was able to identify the specifics behind relatively low ultra-rich-customer satisfaction. Let’s examine a few.

First off is fees – they don’t like them. Results cost money and everyone needs to earn, so perhaps there’s not much an advisor can do. The next is an oft-remarked issue: these days, customers want lots of personalized service. High-net-worth clients are likely used to attention and perhaps even a degree of catering. If you aren’t directing your laser focus on them and staying in regular contact, these clients might be dissatisfied, even if you’re providing positive portfolio returns.

The good news for wealthy customers is that they’re doing very well, globally. US and Asia/Pacific customers are seeing the best returns with Europe somewhat lagging. Equities are the top performers and account for the lion’s share of the holdings of wealthy investors, followed by cash and real estate. Cryptocurrencies are sparking strong interest but financial advisors are apparently less than adept at providing sound advice. An opportunity is available here for advisors who can step up and better serve their customers.

For more information, please read:
HNW Client Satisfaction With Advisors Is Subdued Despite Stellar Returns: Capgemini | ThinkAdvisor


The Devilish Details: Telling Customers about Fees Early to Rise: Morning Productivity and You