Build Client Loyalty and Gather Assets

When Dow Jones NewswiresTM examined the relationship between client loyalty and the success of investment professionals, they found that those practicing a highly consultative approach with frequent client contact enjoyed significantly higher rates of client loyalty and dramatic increases in assets under management.[1]

According to their findings, “loyal” clients entrust their investment professionals with over 15 times more assets than clients who are simply “satisfied.” And, almost 95% of “loyal” clients said they are “extremely” or “very likely” to give their investment professionals more assets in the coming year.

Six Critical Factors

The study outlined six critical factors that are necessary to build successful, long-term relationships with high-net-worth investors:

  • Consultative – Do you work in a collaborative spirit? Do you contact your clients about non-investment subjects?
  • Character – Do you demonstrate integrity and honesty?
  • Chemistry – Are you able to connect with your clients?
  • Caring – Are you genuinely concerned about your clients’ well being?
  • Competence – Are you being perceived as an intelligent expert in the field?
  • Cost Effectiveness – Are you delivering real value for the cost of your service?

Of these, Dow Jones deems “consultative” as the most important factor for you to nurture in your practice because it gives relationships the framework for ongoing, communication-rich partnerships.

“Communication is the bedrock of a quality relationship,” said Joseph Lanza, vice president, Sales and Marketing, Dow Jones Newswires–Americas. “High-net-worth investors both value and expect ongoing communication with their wealth managers—even on nonfinancial topics. Our report shows that contacting clients just two times per month can build the kind of loyalty that delivers assets under management to investment professionals.”

Are you delivering a highly consultative service level to your clients?

Tools You Can Use

In NetX360® you will find tools to help establish ongoing, communication-rich relationships with your clients.

Here are some ways that you can use the tools in NetX 360 to help you deliver quality communication and add value:

  • Keep Clients Informed of Market Happenings
    S&P MarketScope® is a great source of inspiration with Market Commentary (what is happening in the market and why), Market Movers (which stocks are moving and why), and S&P Spotlights (analysis of news events and their impact on stocks).
  • Give Clients News They Can Use
    Draw on the many resources of Dow Jones (The Wall Street Journal®, Barron’s®, SmartMoney®, Dow Jones Newswires) for useful news including investment ideas and finance, hot off the press topics, U.S. tax news, economic news, and more.
  • Help Clients Make Informed Investment Decisions
    Use Morningstar® Fund Analytics to analyze over 17,000 mutual funds within Morningstar’s database, build hypothetical presentations for clients, explore the latest news and editorial on industry trends, examine bond funds, and check out Morningstar’s picks.
  • Recommend Mutual Fund Portfolio Changes
    Take advantage of The Rankings ServiceTM to benchmark successful funds against fund manager performance. You can also use this tool to review a list of the top 100 managers, rank the top 10 performing managers in specific asset classes, read manager interviews, and build watch lists.
  • Provide Institutional Investment Ideas to Clients
    Access coverage of 98% of the equities in the S&P 500® Index with Credit Suisse research reports. Examine 3,000 U.S. and non-U.S. stocks, leverage investment strategies for global equities, track watch lists, and produce client-ready research reports.
  • Deliver Investment Advice to the Active Trader
    Find unbiased computer generated comments and recommendations in MarketEdge® with daily coverage of over 5,000 stocks. Use this tool to review market-timing signals, take advantage of a powerful interactive charting tool with trading signals and conditions, search for investments with a screening tool, review short-term trading ideas, and track point and figure chart breakouts.
  • Provide Clients With an Independent Viewpoint
    Identify winning or losing stocks by comparing the findings in BNY Jaywalk Consensus, which provides access to consensus reports on over 5,000 global securities that are free from investment banking conflicts. You can also use this tool to read recommendations from over 150 independent research providers and import Quote Track® to filter equities by model portfolios.
  • Generate Research Reports Tailored to the Retail Investor
    S&P Stock Reports are client-ready and carry the company’s five-star ratings. Five-page reports include key statistics, business balance sheet, financial history, fundamental data, Wall Street consensus, news, and industry outlook.

The information contained in these materials is believed accurate at the time of writing, but is not guaranteed. Delta accepts no responsibility for its use whether in whole or in part.

[1]   Dow Jones Newswires, “Building Client Loyalty: The Case for a Wealth Management Solution,” November 15, 2005