Client surveys to be done properly, or not at all

The latest analysis by Business Health of 500 advisory practices found that over half have no structured way of seeking feedback from their clients.

Business Health principal Rod Bertino said conducting client surveys is more important than ever.

“It’s always important in any market, but now it’s more important than ever,” he said.

However, Bertino warns that it must be done effectively, or not at all.

“If you do it, it has to be done against accurate, reliable industry benchmarks,” he said, which is why it is best that practices outsource these services. “Most practices don’t have the core capability — it’s not what their business is about.”

Another issue with DIY client surveys is that most clients will not give honest feedback.

“If a practice really wants it to be effective, they must ensure confidentiality and anonymity,” he said.

“Most clients won’t tell their adviser honestly and brutally exactly what they’re thinking. It’s general human nature. But you will get a far more open response if you outsource.”

Bertino also warns that practices should not engage in client surveys unless they are serious in actioning it.

“If your clients take the time and effort, and nothing is done about it or their concerns are ignored, they will be more disgruntled and it could create problems where there were none.”

Bertino said from a client perspective, the two areas of lowest performance are client communication and client reviews.

“Clients are looking for more proactive, personalised communication from their adviser,” he said. “And clients are also increasingly differentiating between investment and product updates, and client reviews. They don’t just want market updates — they want to know what it means in terms of their goals and aspirations.”