Many financial planning firms focus on growing their business by winning new clients.
After all, the more people you can get in through the door, the more successful your business will be – right?
However, it’s much easier to keep an existing client than to sign a new one. And it’s cheaper too … with some studies estimating it can be five to 25 times more expensive to acquire new customers than to keep your old ones happy.
Retaining your clients is also good for your bottom line. Bain & Company found a 5% increase in customer retention produces a 25% increase in profit for financial service firms.
So why do clients leave?
According to a Spectrem study, it all comes down to not feeling the love.
Three of the four most highly cited reasons investors said they would leave their financial advisers were service-related.
Retention isn’t just about making your clients more money. It’s about providing excellent service that makes your clients feel valued.
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