Cracking the Code to Organic Growth: Redefining Success Beyond Satisfaction

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Look back on the industry’s past to move forward with confidence.

There is a problem with some of the metrics used to define success in the advice profession. Research indicates that 93% of clients are satisfied with their advisor and 92% of clients are loyal to them. While useful to some degree, those metrics fall short of capturing the essence of what drives organic growth.

It's not just about retaining clients; it's about creating an advisory practice so compelling that clients are inspired to become enthusiastic advocates.

Organic growth – the holy grail for advisors – is near zero for the profession. For a large portion of advice professionals this is true. But organic growth is thriving, however only in a very concentrated segment. The top 10% of advisors are gaining 28 new households per year. This figure drops precipitously to 12 in the next decile and just seven in the second quartile. Factor in client attrition and this means minimal to negative growth for most advisors.

This elicits an important question: With such high reported rates of client satisfaction and loyalty, why do only a few advisors experience the benefits of client-driven referrals? In part, it’s because the profession relies on the wrong metrics.