Nearly four in five clients (79%) participating in the study said they had no change in their perceptions of their advisory firm or their advisor in response to Covid-19. But 18% of respondents said that their advisor’s Covid-19 response produced a positive change—the same percentage of respondents that said they were somewhat or much less likely to switch advisors right now.
Mike Foy, director of Wealth and Lending Intelligence at J.D. Power and author of the study, said that if advisors had only acted proactively back in February, they might not now be facing the loss of established clients and their assets.
“It may seem intuitive now, but the advisors that were vigilant in March and April are far better positioned to reap the rewards in client retention, loyalty, and referrals in coming months,” he said in the study. “And as the landscape in a post-pandemic world continues to evolve, the advisors that are nimble and more willing to adapt to prioritize their client’s changing needs and preferences are far more likely to enjoy these spoils in the future as well.”
Founded in 1968 by James David Power III, J.D. Power is a data analytics and consumer intelligence company headquartered in Agoura Hills, Calif.