- AK Advisory Partners LLC - https://www.akadvisorypartners.com -

The Keys To Client Retention

Retaining clients is one of the most important components of a successful advisory practice. After all, there are costs associated with obtaining new clients, and to lose them results in not only lost revenue, but makes the entire endeavor a waste of time.

PriceMetrix, a practice management software and data services company, just released a new study on client retention. I like the company’s work and find it very credible, in part based on the size of their database, which encompasses 7 million investors, 500 million transactions and nearly 40,000 financial advisors.

The study concluded that advisors who retained 95% of their clients during the period 2010-2013 increased total assets under management (AUM) by 25%, while those who retained 80% increased assets by just 12%. Growth and success are definitely related to client retention.

Some of the  key takeaways from the study include:

I think these are all important points to keep in mind. I wouldn’t necessarily recommend changing your marketing strategy because of the study, but it should influence the way you talk to clients, how you treat current clients and provide some points on how you can fine tune what you do.