Professional Resources

Four Strategies to Increase Client Retention for Financial Advisors

Client retention is a key component to running a successful financial advisory practice. Here are four strategies you can use to increase client retention.

Client retention is a key component to running a successful financial advisory practice. There is an increasing cognizance of the requirement for financial advisers to preserve the investment assets that are currently under management, particularly as they pass between generations. New technology solutions can help to build loyalty between advisers and their clients, improve transparency and enable more frequent conversations, building trust and loyalty. Whether an adviser is preparing for growth, succession or simply wants to improve productivity, every adviser must have a good understanding of which client relationships are likely to be long-term and which relationships are at a greater risk. Clearly, growing an advisory practice is far more challenging when continually trying to bring in new business and replace relinquished assets. Higher client retention is linked to higher revenue and asset growth.


  1. A ‘Family mind-set’

Younger generations, including millennials and Gen Z, do not recognise the requirement for a financial adviser as they cannot envisage the wealth they are set to inherit. When the time arrives and they inherit the wealth, they have limited knowledge on a financial advisor’s role and the need for one. Financial advisers have a unique opportunity with clients to begin building these relationships and educating the next generation before the transfer of wealth happens; it is important to get the family to think as a family and communicate with each other. 


Advisers who engage on a family basis and begin conversations with client’s children, who are likely to be millennials, sooner rather than later are preserving their interest in the advice that is actually available. It will likely be the case that their circumstances mean they do not require financial advice services at present, however this is likely to change in the future and there will already be a pre-existing relationship to nurture and build upon. This will be far easier than establishing new connections at this difficult time for any beneficiary.  


  1. A Holistic Approach

Life and retirement planning is about a lot more than purely investment advice and the most successful advisers act as a conduit to help make clients dreams a reality. The holistic approach to financial advice adds significant value to a purely investment driven approach and offers a compelling advantage over the competition. Holistic financial advisers can help play an important role in helping clients understand various different aspects of their lives including purchasing property, navigating different jobs, receiving windfall inheritances or critic illnesses to name a few.


Not only can a holistic approach assist clients with the creation of a superior life and retirement plans, but the benefits go beyond attracting new business. Financial advisers can strengthen their relationship with clients which will help with retention; these value-added services can also help validate fees that may appear higher than self-investing or robo-advisor alternatives.


  1. Embracing of Technology

Advisers who embrace technology will have the upper hand as it provides them an edge when they advise their clients. New technology solutions can assist with building loyalty between clients and advisors, starting by making it simple for advisors to deliver relevant, and thus valuable insights to their clients in a timely manner. Advisers can utilise new technology solutions to call on their clients with valuable insights, making the relationship more interactive with more regular conversations.


Technology tools, such as SecureTheFile, are helping adviser-client relationships by facilitating greater accessibility between both parties, greater relevance and more accurate detail in conversations and documents and providing far greater value.


  1. Manage Expectations

It is very important for financial advisers to define their role as a financial coach and educator, with the goal of training clients about investment performance. Speak with clients and understand where they are on their journey, depending on their background, age and experience, they will likely have different expectations of how advice is delivered and offered. Setting these expectations early on, both with clients and their beneficiaries can help with retention in the long-run.