Even Happy Clients Will Stray, Matt Oechsli Tells IMCA

Wednesday, May 18, 2011 06:55
Even Happy Clients Will Stray, Matt Oechsli Tells IMCA

Tags: investor behavior | prospecting

Clients who say they're satisfied with their financial advisor will still seek second opinions to test the recommendations they get, a noted industry consultant says.

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Matt Oechsli recently told the members of IMCA, the Investment Management Consultants Association, that even the most satisfied investors will look around for a better option if one is available.


As he puts it, investors are inherently disloyal -- after all, these are business relationships, not friendships or love matches.


For an industry where people often pride themselves on building long-term relationships with clients that will last through thick and thin, richer or poorer, this is an eye-opener.


Do advisors always need to be seducing each other's clients away? Is the notion of client retention a myth?


Definitely food for thought. It's true that a lot of advisors sentimentalize their books, but some churn is probably natural. 


Of course, if the book starts shrinking, there's a problem.




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