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Most customers not loyal to wealth management firms

A new study from IBM Institute for Business Value study found that less than half (43 percent) of clients of are steadfastly loyal their US wealth management firm. And more than 40 percent do not consider their firm a “trusted advisor” to help them meet their financial goals.

The study, “Building Client Advocacy: New Opportunities for Wealth Management Firms,” comes as firms are scrambling to differentiate themselves and meet changing client demands.

“Wealth management firms have attempted to become more client-centric and respond to their clients’ needs and expectations by placing more personnel on the front lines. This strategy has met with limited success with costs often outstripping gains resulting in minimal improvement of client satisfaction,” said Douglas Butler, financial markets leader, IBM Global Business Services. “We believe firms must move away from traditional client satisfaction metrics and start focusing on client perceptions about the overall business relationship.”

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