Delivering excellent customer experience in wealth management is a must, as this is exactly what HNWIs expect from such services. This article explores how to ensure client satisfaction and maximize the impact of customer experience on revenue and loyalty.
The Impact of Customer Experience on Revenue and Loyalty in Wealth Management
Firstly, we need to examine the impact that a positive customer experience has on your revenue, profitability, and customer retention. Let’s begin with some statistics. According to Blake Morgan
- Customer-focused businesses are 60% more profitable than those that do not focus on their clients.
- Superior customer experience leads to an average of 5.7 higher revenue.
- 84% of businesses that actively try to improve their customer experience see a growth in their revenue [1].
Although these statistics may seem broad and not directly tied to wealth management, we can see this reflected in wealth management services. According to the KPMG report on customer experience, most asset managers prioritize customer experience in their efforts. What is more, if we look at other priorities, we can see ones that lead to a better customer experience indirectly, such as:
- increasing efficiency,
- creating a customer-centric digital commerce,
- integrating data for a single source of truth across the board.
Hence, even without exact stats about the impact of customer experience on revenue in wealth management, we can conclude that the better it is, the more profitable your business gets.
Customer Experience and Loyalty
Apart from the financial benefits, we also need to mention the impact of positive customer experiences on your customer loyalty.
According to the Impact of Customer Experience on Loyalty report published on MarketingCharts.com, the better the customer experience, the more likely your clients are to:
- recommend your business:some text
- 94% if you deliver excellent customer experience,
- 82% if you deliver a good customer experience,
- 66% if you deliver ok customer experience,
- 44% if you deliver poor customer experience,
- 13% if you deliver very poor customer experience,
- forgive a bad experience:some text
- 77% if you deliver excellent customer experience,
- 58% if you deliver a good customer experience,
- 47% if you deliver ok customer experience,
- 32% if you deliver poor customer experience,
- 15% if you deliver very poor customer experience,
- trust your services:some text
- 89% if you deliver excellent customer experience,
- 73% if you deliver a good customer experience,
- 61% if you deliver ok customer experience,
- 40% if you deliver poor customer experience,
- 16% if you deliver very poor customer experience [3].
All of the above are crucial, especially if you try to meet the expectations of high-net-worth individuals in wealth management.
Building Positive Customer Experience in Wealth Management
So, how do you deliver positive customer experiences that will stimulate your revenue growth? There are a few strategies that will help you with that.
Personalization
The best customer experiences are tailored to your investors' particular needs. Hence, you should invest in efforts that will enable you to personalize your wealth management services. What do we mean?
- You need to collect client data efficiently, preferably using automated tools whenever possible (e.g., automated notes from video calls).
- You should integrate all your data into a single source of truth.
- You ought to integrate AI-powered analytical tools to analyze the data.
- Finally, you should leverage this data to deliver personalized services tailored to individual client preferences.
Remember that personalization occurs on multiple levels. It does not mean purely adjusting the type of investments you propose to your clients, but also:
- customized reporting,
- customized tone of communication,
- offering multiple communication channels so that the client can select their preferred one,
- acting on client insights.
All of the above are possible with our wealth management platform, WealthArc. Schedule a free demo and discover how we can help you boost customer experience.
Efficiency
Another key aspect that impacts customer experience is the efficiency of your services. High-net-worth individuals want things done relatively quickly, so you need to make that possible. This means that you should:
- integrate your teams and channels,
- embrace intelligent automation,
- use advanced technologies to streamline productivity.
For example, you may introduce an AI prompter that lets you chat with your data. This way, you will be able to find the information you need more quickly, hence accelerating your services.
Or, you can use automated portfolio consolidation. This feature is a win-win: it avoids human errors and speeds up the process.
Accessibility
Clients want 24/7 access to their portfolios from anywhere in the world. If you want to boost customer experience in your wealth management firm, you need to take that into account and implement tools that give your clients such an overview.
Trust
Trust is the basis for wealth management, and without it, you won’t be able to deliver positive customer experiences. To build it, you need to:
- be transparent,
- make realistic promises that you can fulfill,
- listen to your clients and execute their requests accordingly,
- provide robust data security.
The Takeaway
The impact of customer experience on wealth management cannot be understated. You need to put as much effort as possible to ensure that your client's journey is as positive as possible. This way, you will attract new clients to your services and ensure that the current ones are loyal, so don’t underestimate the power of customer experience—embrace it!
You may also read: Personalizing Client Experiences in Wealth Management
References:
- Blake Morgan (via https://www.linkedin.com/pulse/how-prove-roi-customer-experience-blake-morgan-1c/)
- KPMG LLP. (2022). Digital distribution: Customer experience. https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2022/digital-distribution.pdf
- MarketingCharts.com; Data source: XM Institute
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