Adviser ‘soft’ skills a crucial factor in client retention

According to MetLife’s Adviser-Client Relationship Report 2018, 45 per cent of small-to-medium enterprises and 26 per cent of consumers have intentionally stopped using an adviser due to a lack of ‘soft’ skills.

When asked about the key reasons for the change, insufficient trust, poor service, difficult to deal with, and a lack of communication were all given as reasons.

MetLife Australia head of retail sales Matt Lippiatt said clients who receive thoughtful communication and timely reassurance from their financial adviser are not only more loyal but more likely to refer, emphasising the importance of advisers’ soft skills in growing their client base.

“What is evident is that regular communication is essential for a successful adviser-client relationship, but this communication does not always need to be a sit-down meeting in an office,” he said.

“Regular check-in calls, text messages, tailored newsletters or even a birthday card are all appreciated by clients.

“The best advisers we see are tailoring communications to clients’ individual preferences and using technology to enable them to build better engagement and rapport.”

The survey had also found that 80 per cent of small-to-medium businesses had a better understanding of life insurance as a result of seeing an adviser, and that regular reviews helped them to be better prepared for succession.

“Small businesses are often misunderstood by the insurance industry as they have unique needs and there shouldn’t be a one-size-fits-all approach,” Mr Lippiatt said.

“Therefore, having a trusted adviser who can provide education on the right type and structure of insurance cover related to their business can make a big difference to this group.”

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].