Client loyalty and the recommendation of an adviser has declined in 2008 as a result of market volatility, according to a study by ING Australia.
The percentage of clients highly likely to recommend an adviser has dropped from 45 per cent to 40 per cent in the last year, where the client-adviser relationship spanned between two to five years, the survey found.
For client-adviser relationships spanning more than five years, client recommendations fell from 46 per cent in 2007 to 35 per cent in 2008.
The survey results highlight the need for advisers to be even more vigilant with their client relations during difficult times, ING Australia executive director of sales & marketing Ross Barnwell said.
"Client satisfaction is off the highs of 2007.This year's results show a small decline in very satisfied clients, and the fundamentals of what clients want has changed," he said.
"In 2008 clients expect their adviser to clearly understand their financial goals.
"The current market volatility has impacted on client views of adviser performance and in this climate it is imperative that advisers maintain regular contact with their clients." Barnwell said.
ING Australia commissioned Nielsen research to survey over 700 consumers and more than 250 financial advisers between June and July this year.
