ING Survey: one step at a time with adviser recommendations

Research recently commissioned by ING Australia has found that only 17% of surveyed investors invested all of their total investments (excluding property) in accordance with their financial adviser’s advice.

The same survey found that the top three drivers to continue to see a particular adviser were:

• They understand my needs (68%),
• I trust them (67%), and
• They listen to me (60%)

ING Australia commissioned Nielsen to survey over 700 consumers and 300 financial advisers in June and July to better understand consumer perceptions of financial advice, building on research undertaken for INGA in 2006.

“While the research found only 17% of investors accepted all of their adviser’s advice, the power of long term relationships and regular client contact continues to be the key in increasing the likelihood of an adviser recommendation by the client,” said Dan Powell, Executive Director of Sales & Marketing.

“These results indicate a significant opportunity for those advisers that deliver a targeted and appropriate service to their clients.”

The survey also found that the most successful advisers are those that maintain an ongoing relationship with their clients, with:

• 45% of two year plus clients citing a high likelihood to recommend their adviser  versus 27% for less than two yeas,
• Only 12% of clients recommending an adviser if they have not been contacted in the  past 12 months, versus at least 40% of those who receive annual contact
• The key factors in choosing a new financial adviser cited as:
   - Recommendation from family and friends – 40%
   - Reputation of the adviser’s company – 28%
   - Adviser qualifications and accreditation of the adviser – 24%

“Our results have found a low 12% of clients would recommend an adviser that has not contacted them in the last 12 months,” said Mr Powell.

“With word of mouth being such a powerful marketing tool, the survey results clearing show that a proactive adviser will gain substantial client support and win new business.

“As people are now more focused on superannuation and investing for their future, there is a real opportunity for advisers as the research found that two-thirds of consumers saw an increasing role for advisers.

The research found a gap between adviser and client expectations.  To redress this gap INGA is developing a series of business tools that will assist advisers to map out their value proposition. The ‘tools’ will enable an adviser to determine business capabilities, skill requirements, and appropriate business models based on individual adviser skill sets.

“We plan to launch these business tools in the new year,” said Mr Powell. 

“If advisers want to gain more from their clients through increased investments and referrals they will need to implement business models based on their skills and capabilities, whether generalist or specialist.

“People are becoming increasingly financially savvy, and understand that advice will help them. The opportunity and challenge for the industry is to articulate the value of advice and in delivering it, exceed consumer expectations.”