Three in 10 clients at risk of leaving their adviser

Close to three in 10 (28.6%) Australians who currently receive financial advice are at risk of leaving their adviser, according to new research from CoreData. However the research suggests a huge growth opportunity for advisers among both the advised and unadvised if they focus their efforts in the right areas.

CoreData’s 2014 Keys to Growth Report found those most at risk were less likely to have received any contact from their financial adviser or met with them in person in the last 12 months, suggesting frequent contact and face-to-face meetings are critical to client retention.

Key to the report is a segmentation of advised Australians classifying them as Bonded, Firm, Loose or At Risk. Clients who are classified as Loose and At Risk present a dual growth opportunity for advisers – firstly, by identifying and keeping those clients who are in danger of leaving and secondly, by acquiring new clients looking to switch.

Length of relationship no indication of future relationship

Frequency of contact and meetings in person with advisers are both clearly linked to maintaining relationships with clients. Two in three (67.3%) Bonded respondents have met with their adviser in the past six months, while 95.2% have been contacted by their adviser within this period. In contrast, 57.1% of those classed as At Risk last met with their adviser more than 12 months ago, while one in four (25.0%) have not received any contact from their adviser for more than 12 months.

See the full CoreData release here