Why do investors change financial advisors?


Most would think that poor investment performance would be the most common reason for investors to change their financial advisors. Not so, according to a research report from State Street Global Advisors and @ Wharton, which is affiliated with the Wharton Business School at the University of Pennsylvania.
The most common reason cited by investors who made the switch was poor customer service by the advisor’s support staff. This overlooked factor comes into a focused view, according to the report’s analysis, once it is known that advisors only have about 15% of total client contact. The rest is all support staff, creating situations where a few bad interactions in a row could be cause for losing business.
For more analysis on this important research, look out for the final segment of our three part series on Building Successful Client Relationships coming this Thursday.