The Alliance Between Trust and Satisfaction

12 February 2019 | Practice Management


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Alex Cole: The alliance of trust and satisfaction. The Vanguard 2018 U.K. Advisor Client Survey contacted 300 advisors and a thousand advised clients. One of the survey's more interesting findings was the relationship between client trust and client satisfaction.

My name is Alex Cole and today I have with me Georgina Yarwood, an Investment Strategist specialising in researching financial advice.

Georgina, we have here a chart showing trust and satisfaction as per the client survey. How are we reading into these results?

Georgina Yarwood: So here we have mapped what an average book of clients would look like by their trust and satisfaction scores, so the first things to note is it is largely a good news story, most clients trust and are satisfied with their advisor, but we do see some room for improvement. So while over 60% of clients reported high levels of trust in their advisor, only 44% reported high levels of satisfaction and actually only 39% of the total reported both high levels of trust and satisfaction.

Alex Cole: OK, so most people would think this represents pretty good levels then, right?

Georgina Yarwood: It is, definitely. Overall, it is a good news story, however, we look at a variety of key performance metrics for advisors, and we found that when you move from that middle trust/middle satisfaction through to the high trust/high satisfaction segment, there was a significant improvement to the scores that we saw.

Alex Cole: OK, shall we have a look at the example?

Georgina Yarwood: Yes, sure. Let's take client loyalty as an example today. So here we are looking at clients who said that they would be very unlikely to switch advisor in the next 12 months, so this is scores of 5 on a scale of 1-5. Now, only 9% of clients with medium trust and medium satisfaction said that they would be very unlikely to switch advisor. When you hold satisfaction constant but you move to high levels of trust, this percentage increases to 23%. When you move to high trust and high satisfaction, we see a substantial jump, and the performance almost triples to 61% of clients who said that they would be very unlikely to switch.

Alex Cole: And this pattern typical across the advisor/client relationship?

Georgina Yarwood: It is, wherever we looked, be it willingness to offer unprompted referrals, comfort sharing personal information, the share of wallet, we saw a substantial improvement when you moved from those medium trust/medium satisfaction levels into the high trust/high satisfaction segment.

Alex Cole: Thanks, Georgina. Moving clients to high trust/high satisfaction can pay big dividends to your clients and to your business. Our survey findings on the drivers of trust and satisfaction can help you make this move. Be sure to register your interest in our Advantage of Advice workshop to find out how.

Thanks for watching.

Related reading:

What makes great financial advice?

Understanding the Value of Advice


The Advantage of Advice

Professional advice is key to investor success. But how are advisers adapting to a complex future? Find out more and register your interest for a 2019 workshop.

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Investment risk information:

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. Past performance is not a reliable indicator of future results.

Other important information:

This video is directed at professional investors in the UK only and should not be distributed to, or relied upon by retail investors.

It is for educational purposes only.

The material contained in this video is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so.

The information in this video does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this video when making any investment decisions.

The opinions expressed in this video are those of individual authors and may not be representative of Vanguard Asset Management, Limited.

Issued by Vanguard Asset Management, Limited which is authorised and regulated in the UK by the Financial Conduct Authority.

© 2019 Vanguard Asset Management, Limited. All rights reserved.


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