Capital recently issued a client feedback survey and we were delighted with the level of response received. Although as a smaller, boutique business (and deliberately not mass market), we are close to our clients, it’s important to keep learning more to ensure your Capital service and experience is perfect for you.
The survey was done on an anonymous basis to encourage total candour and so if you participated – thank you for your time and feedback. If you didn’t get a chance, I hope you will do so when we ask for feedback again next year.
The five key findings of the client feedback survey are;
1. Your greatest fear about your finances is not having enough money to live comfortably in retirement
2. The second greatest fear is experiencing a significant investment loss in a market downturn
3. Many respondents expressed a desire for greater frequency of contact with your adviser
4. Overall, 95% of respondents would recommend their Capital adviser to friends, family and colleagues
5. Over the past 12 months, 46% of respondents have made at least one referral of friends or family to their adviser.
A number of clients expressed a keen interest in learning more and really understanding how their investment portfolio is structured and managed.
This is interesting as we are always trying to gauge how analytical we should be in explaining the detail within portfolio construction and management and tended to opt for the less is more approach and so need to review that in future.
Less of …
Several clients expressed a desire for us to talk less about fees and charges during review meetings.
We have always focussed on the benefits of keeping fees and charges as low as reasonably possible to enhance long term returns for clients. Research confirms that keeping costs to a minimum tends to lead to better investment outcomes over the longer term, but perhaps we have banged that drum a little too hard for some clients!
What attributes do clients most value about their relationship with Capital?
A resounding 70% response related to the actual service experience and ‘dealing with clients like me’. The remaining 30% mentioned investment returns. When questioned about the most important value derived from your adviser, 81% mentioned ‘security and peace of mind, personal knowledge of my situation, and progress towards my goals’. The balance 19% was about investment returns.
Studying the findings of the survey is one thing, but doing something about them is another matter altogether. We didn’t ask you to help with this survey just for fun – we did it to learn more of what you really value in order that we may enhance your experiences and our services to you.
1. Outliving your money is often referred to as the fear of ‘running out of money before you run out of breath’. We have created a unique process, using sophisticated forecasting software that provides clients with clarity and confidence in this specific area. We call it FutureMap™ because it produces a financial map of your short, medium and long term financial future. Perhaps we have kept this quiet for too long, so in future, we will make FutureMap™ far more accessible.
2. On investing, we need to be clear to explain the difference between short term volatility (which is the price we all pay for higher long-term returns) and permanent loss of capital (i.e. a real loss with no hope of recovery).
Most of our client portfolios are designed to be ‘all weather’ in that they can perform well in positive markets but have very robust defensive qualities to protect the downside during turbulent times.
Perhaps now is a good time to promote more openly just how the portfolios are designed to sustain you through those market downturns to provide some reassurance.
3. We offer three individually designed client services which meet the needs of our client families during key stages of their life. We will now be asking you about the ideal frequency of contact and meetings throughout the year.
4. A 95% referral rating is a strong vindication of all we do, and as a direct result, we are working on ways to enhance your ability to make introductions for those seeking some advice or simply a professional ‘second opinion’ on their finances. Watch this space. Capital is open for business.
Once again, a big thank you and rest assured that we will be acting on the valued feedback.