Shy wealth firms overlook most basic way to win clients

Shy wealth firms overlook most basic way to win clients

Wealth managers are missing out on one of the easiest ways to win clients, according to a new study.

While very few of the world’s rising wealthy are uncomfortable providing friends, family, or colleagues with referrals to a wealth manager, the majority of firms are missing out on this opportunity.

The Futurewealth Report 2014, composed by SEI, Scorpio Partnership and NPG Wealth Management, revealed advisers doubled their chances of receiving a referral by simply asking for one.

The study, which surveyed 3,025 individuals around the world with an average worth of $2.9 million, found that 47% would actively refer without being prompted, while an additional 47% would only refer if asked to do so.

However, it would seem wealth firms are on the whole rather unassuming, with only three in 10 of those surveyed saying they were asked for referrals by their wealth managers at least once a quarter.

The report found referrals are triggered by a complex blend of circumstances and financial behaviours, and are heavily influenced by a client’s age and geographic background.

Respondents from the West are more likely to recommend wealth managers if they demonstrate stability, good performance, personal service and integrity.

In the Americas nearly two-thirds (58%) of up-and-coming wealthy individuals would recommend a stable firm, followed closely by strong performance (54%).

The quality of the salesperson and ‘periodic’ contact and ‘information about new products and services’ at 15% and 14% respectively ranked as the most important element in a wealth manager’s ability to deliver a great experience.

This suggests today’s high net worths increasingly desire a strong relationship with their wealth advisers.   

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Monday, June 30th, 2014 EN

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