The more an advisor works with clients and brings them into the planning process, the more comfortable the clients are in those working relationships and more likely to provide referrals, according to a recent study published by eMoney. 

During its virtual eMoney Summit last week, the firm released research that it, along with Bellomy Market Research, had conducted, finding that of more than 1,200 investors surveyed, 78% said they want to be involved in the creation of their financial plan. The level of collaboration was not just at the early stages of the relationship but throughout the process, according to Emily Koochel, manager of financial wellness at eMoney.

“Nobody wants to feel as though they had this really great financial planning experience and then it kind of fizzles out for all intents and purposes,” she said in an interview with Financial Advisor. Ongoing communication is important and shouldn’t start to fade out just because the financial plan is completed, she added. 

Collaboration is only one of the reasons clients choose to connect with a particular advisor. Thirty-nine percent of surveyed investors said they chose their advisor because they trust the advisor’s experience, while 35% said the advisor made everything understandable. Finally, 34% said they felt the advisor understood their personal priorities, goals and values, while 34% also said they chose the advisor for reputation.

While all those factors added to client satisfaction, the clients’ involvement in creating and executing their own financial plan went a long way toward determining whether they would refer their advisor to a friend, according to the study. eMoney found that 93% of investors who said they had a high collaboration level would refer their advisor, while only 60% of investors who had low collaboration said they would. 

Those referrals are important to advisors—31% of the investors surveyed said they found their current advisor through word of mouth, while 23% found it through another family member, and 18% found it through their 401(k) plans. 

At the conference, Koochel emphasized the importance of advisors personalizing their plans for their clients by incorporating their clients’ thoughts and feelings about the plan. All that helps foster a collaborative relationship, she told the audience.  

“This ensures that clients feel that their input is valued, leading to more satisfactory and achievable financial plans,” she said. “When advisors focus on understanding and addressing each client’s individual needs, they build the trust and rapport necessary for a successful collaboration.”