Getting social – the modern equivalent of the coveted ‘word of mouth’
Unsurprisingly, research carried out on a representative sample of financial advisers identified the top business challenge facing them currently is the increasing burden of compliance. This was selected by nearly half (49%) of the advisers surveyed.
But after compliance and regulation, the next other significant challenge commonly faced by established financial adviser businesses is servicing existing clients to lock in the client business for an eventual sale or business exit, selected by (28%) of the advisers surveyed. This makes total sense, as retaining existing clients is considerably less expensive than acquiring new ones. It’s very well documented that generating business from new client acquisition can cost anything between 5 to 25 times more than it does from an existing client.