Part 2 – Do you really know how satisfied your clients are?

The only way to be absolutely certain that your clients are satisfied with you, your services and your firm, is to ask them! Easier said than done though – according to our latest analysis just one in four Australian practices (26%) have formally* sought feedback from their clients in the last two years. This % has remained with little variation, ever since we launched our CATScan client satisfaction service over 20 years ago.

* a survey conducted on a confidential and anonymous basis, benchmarkable to the marketplace and ideally undertaken on behalf of the practice by an independent third party.

 Given the advantages of surveying clients, it remains a source of frustration that so few practices make the effort to seek their client’s views and feedback. Firms who actively seek formal feedback are achieving a much higher level of profitability compared to their peers who don’t (+ 90%). Positive client feedback and good survey results also provide excellent marketing material for your website.

The most cited reasons (excuses) for not conducting client surveys;

  •  I don’t have a retention issue and clients aren’t complaining, so I know they’re satisfied, therefore I don’t need to ask.  – In our experience, a quiet client isn’t necessarily a happy one. Why not be certain before it’s too late. You could learn stuff too.
  • Now’s not a good time.  – While there are certain times throughout the year that aren’t ideal (Xmas, school holidays and maybe end of FY for your business clients), there remains at least 8 months where this excuse doesn’t really hold up.
  • I don’t know how and haven’t got the time to construct my own survey. – Then don’t, pay someone else to do it for you. Isn’t your client worth $2 (the average cost to survey your whole client base using our CATScan service).
  • My clients are sick of being continually surveyed by others, I don’t want to add to their frustration. – Nice try but as their financial planner you are providing an important, valuable service – a tad more relevant perhaps then the last Netflix or airline survey they’ve completed. And, maybe there’s a reason why others do it – it works!  The response rate we receive for our CATScan client survey service averages 30% to 35% – surely proof positive that clients are very willing to provide their adviser with feedback.

There are pre-requisites

Before asking your clients for their feedback:

  • Attitude – you must be prepared to listen to what your clients say and, the hard part – accept it. At the end of the day, their perception is your reality.
  • Commitment – you must also be prepared to take action if necessary, to act upon what your clients tell you.
  • We believe the best quality feedback is received when a survey is conducted by an independent party and not connected in any way to the practice. It makes it easier for clients to provide objective comment, if it’s being received confidentiality by a third party. It’s our experience that clients are more willing to provide honest ‘warts and all’ feedback if their anonymity and confidentiality is assured.
  • The feedback should be measured in a qualitative manner (using, for example, a simple scoring system) to allow the practice to assess and benchmark its results over time. Ideally benchmarked against other Australian advice firms, so you know how you’re doing compared to your peers.

For your consideration.