Can we all agree changing a service provider is rarely a fun experience? For financial advisors looking to attract new clients, this is an important thing to consider.
Recent research (Cerulli Associates) reveals a fascinating trend: clients often remain with their current advisors despite dissatisfaction, primarily due to concerns about the hassles of switching like time, effort, and potential disruptions.
On the flip side, if a client knows the alternative is going to be more convenient, they are more likely to make the jump. Almost 81% of consumers are willing to pay more for convenience, and 88% of customers say they would switch if they found a more convenient option elsewhere.
The lesson here is this. Keep in mind as you are engaging a potential client it’s not just about showcasing expertise and service, but about making it clear that you offer a seamless and convenient transition.
Let’s dive into this a bit further:
Understand Inertia:
Clients often find themselves hesitant to switch financial advisors due to the perceived hassle involved in the process. The prospect of changing advisors can be daunting, as it requires navigating through various time-consuming tasks such as conducting research on potential advisors and facilitating account transfers. This inertia can significantly impede clients from exploring alternative options, even when dissatisfaction with their current advisor or financial situation is high.
Combat Lack of Awareness:
A notable challenge in encouraging clients to switch advisors lies in combating their lack of awareness about evaluating their current advisor’s performance effectively. Many clients may not possess the necessary knowledge or guidance to assess whether their current advisor is meeting their needs adequately. Without clarity on what to look for in a financial advisor, clients may opt to stick with the status quo to avoid the perceived risks associated with change.
Marketing Strategies:
To overcome these obstacles and attract clients from competitors, financial advisors must adopt strategic marketing that stresses convenience and ease of transition. Highlighting streamlined onboarding processes and emphasizing seamless account transfers can reassure potential clients that switching advisors doesn’t have to be a burdensome endeavor. Additionally, emphasizing personalized support throughout the transition period can help alleviate any apprehensions clients may have.
The bottom line is that convenience is not a factor to be overlooked, and for many people it may be the most important when deciding to hire you or not. Make sure that messaging is worked into your collateral and marketing communication that you value your prospects, time, comfortability, and frustration tolerance. It will go a long way.