The firm’s latest analysis has found just over a quarter (26 per cent) of practices are actively seeking out client feedback.
This figure has little variation over the last two decades, it said, meaning the majority of practices are not tapping into the additional benefits of receiving feedback to strengthen client relationships, boost business performance, and support the overall success of the practice.
“Given the advantages of surveying clients, it remains a source of frustration that so few practices make the effort to seek their client’s views and feedback,” Business Health observed.
“Firms who actively seek formal feedback are achieving a much higher level of profitability compared to their peers who don’t (90 per cent). Positive client feedback and good survey results also provide excellent marketing material for your website.”
It noted that a lack of retention issues and client complaints were often cited by practices for not conducting client surveys. However, “a quiet client isn’t necessarily a happy one”, it cautioned.
Other commonly cited reasons include: an inability to identify the right time of year to conduct surveys; uncertainty around how to construct them; and concern that clients are “sick of being continually surveyed by others”.
“As their financial planner, you are providing an important, valuable service – a tad more relevant perhaps then the last Netflix or airline survey they’ve completed,” the firm pointed out.
Seeking feedback
For practices that are keen to take initiative and seek client feedback, Business Health outlined four important considerations, namely:
- Attitude
- Commitment
- Seeking out a third party for feedback
- Quantifying results
“You must be prepared to listen to what your clients say and, the hard part – accept it. At the end of the day, their perception is your reality,” it remarked, adding that practices must also be prepared to act on feedback if necessary.
In terms of adopting feedback processes, it urged practices to consider third-party providers, which could improve the quality of results.
“We believe the best quality feedback is received when a survey is conducted by an independent party and not connected in any way to the practice. It makes it easier for clients to provide objective comments, if it’s being received confidentiality by a third party,” Business Health said.
“It’s our experience that clients are more willing to provide honest ‘warts and all’ feedback if their anonymity and confidentiality is assured.”
The firm also highlighted the importance of a quantitative system to analyse the feedback received and make best use of the findings.
“The feedback should be measured in a qualitative manner (using, for example, a simple scoring system) to allow the practice to assess and benchmark its results over time,” it remarked.
“Ideally, [this is] benchmarked against other Australian advice firms, so you know how you’re doing compared to your peers.”
In August, Terry Bell, partner at Business Health, highlighted that the range of priorities advisers are juggling could be impacting the current state of client relationships, with client relationships in danger of “being relegated to the back burner” in favour of other business priorities.
“We see fewer practices seeking client feedback while communication touch points have further reduced in terms of frequency and relevance,” Bell said.
