If Your Client-Service Model Ain’t Broke… Fix It Anyway!

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Service offerings that were premium yesterday may be considered ho-hum today. To keep your clients loyal and attract new business, you need to continually create “delight” with strategic updates.

Centralized asset accounts were first introduced more than 30 years ago and quickly became a source of “delight” for the investors whose advisors used them. Here was something new and exciting – a service that not every investor was getting. The value was tangible. Then time passed. More and more firms started featuring them, and it became a competitive disadvantage not to offer central-asset accounts.

This cycle – where a novel client offering gradually becomes expected and then taken for granted as a basic requirement – happens with most client-service innovations. Being aware of how your services are perceived and updating them accordingly is vital to keeping and attracting new clients.

The value of pursuing client loyalty

There is much supporting data that shows marketing to existing clients is significantly less expensive than to potential clients. Cross-selling is also much more likely with existing clients. Retention, or loyal clients, can be defined as clients who conduct business with only you now and in the future. In addition, they are very interested in considering new strategies, services, and solutions you recommend while resisting the “pull” from your competition. They also provide solicited and unsolicited referrals.