This presents an opportunity for advisors to fill a gap with the 44 percent of millionaires who don’t currently have, or know if they have, a formal financial plan. In addition, those who would recommend their advisor feel he or she “helps to simplify all aspects of my financial life,” according to the study.
Clients who recommend their advisors are 44 percent more likely than detractors to interact with their advisors three or more times a year. Also, during recent market volatility, three out of four promoters were contacted personally by phone or in person by their advisors, compared to half of detractors.
Seventy-nine percent of promoters were asked for their views of the advisors’ work over the past year, while 45 percent of detractors have never been asked for feedback.
In addition to being free with their referrals, millionaires who feel good about their advisor tend to keep most of their assets with one advisor and would go to their advisor if they received a windfall. Sixty-two percent of promoters would follow their advisors to a new company.
The study shows “advisors may be overlooking some very critical, foundational behaviors in their relationships with today’s millionaires—behaviors that consider the evolving needs of investors and their desire for personal, customized relationships with their advisors,” says Oros. “These are straightforward strategies that can convert a detractor to a promoter, yet the study shows that not enough advisors are employing them.”