Building Trust: The Cornerstone of Client Retention for Advisors

Executive summary:

  • More than half of advisory clients surveyed said they left their advisor in 2023
  • These statistics make client retention a key cornerstone of business success
  • Trust is the foundation of building a sustainable relationship with clients
  • There are four components to creating trust: discovery, communication, a personal connection and reliability

Once you've managed to onboard a client, the last thing you want is to lose them! As an advisor, client retention is an important strategy. Regardless of the industry you are in, client retention either becomes a priority or is an ongoing focus in a business plan. That said, recent research1 found that more than half of advisory clients reported leaving their advisor in 2023. Yes, you read that right – half! So, take heart if you're one of those advisors who lost a client last year – you weren't alone. And for those who didn't lose any clients last year – congratulations!

Regardless of where you stood in 2023, it's important to look ahead to 2024. Given such an alarming statistic, making client retention a consistent priority is vital.