The stock market’s rocky start to February has investors, observers, and advisors watching the peaks and valleys and wondering what’s next.
At least for financial advisors, there are a few steps forward in the latest ACSI data around customer satisfaction.
The ACSI Financial Advisors Report 2017 collected data in the fourth quarter of 2017 and reflects customer perceptions when the stock market was still soaring. As you might expect, the scores were high. The average of 81 (out of 100) places it in the top 10 industries measured by the ACSI.
But it also contains opportunities for advisors to differentiate themselves and rise above their competitors, something especially crucial if market volatility remains a trend.
Currently, the major financial advisors have ACSI scores within a few points of each other. LPL Financial and Charles Schwab lead the pack with a score of 82, while Fidelity, Merrill Lynch, and UBS all have the lowest score of 79.
The narrow range shows how competitive the industry is right now and how small, incremental changes can help advisors stand out. Here are three ways to improve customer satisfaction, according to the data:
1. Focus on improving customer service.
Despite the relatively high scores for financial advisors overall, they also have the fourth highest complaint rate of any industry measured by the ACSI – a red flag of negative feedback from customers experiencing problems.
This is probably the biggest opportunity for financial advisors to set themselves apart. A concerted effort to improve service – whether through more face-to-face contact or instantaneous chat capabilities on a website — could increase customer satisfaction and loyalty.
2. Develop or upgrade mobile options.
Mobile options for account management had one of the lowest scores among all the benchmarks, coming in at 78.
While the industry has to contend with compliance constraints, a push behind better mobile capabilities could set advisors apart and give them a technological lead over their competitors.
3. Establish routine contact with investors.
Scores for routine contact with investors (81) and personal contact (79) were two others with lower scores among financial advisors.
Investors will likely have questions about the recent volatility in the markets, making this a prime opportunity for improvement. By taking a more proactive approach to client communication, advisors can not only help clients navigate a suddenly shaky market, but develop relationships with customers that could weather further market volatility.
How customers feel about their financial advisors
While these steps are a start, we’ll have to wait and see how the markets fare in the coming weeks and months.
We’ll closely monitor the perceptions of customers and see whether the high ACSI scores for financial advisors hold up even if the big upticks we saw in 2017 don’t materialize in 2018.
Take a deeper dive into all the customer satisfaction data for financial advisors for more insights on this segment of the market.