Millionaire clients want preferential treatment: Forrester

(January 16, 2003) More than half of Canada’s millionaires say they expect preferential treatment from financial firms because of their wealth, according to a Forrester Research report. The study also found that millionaires want personalized, proactive contact from their advisors.

Fifty-three per cent of Canadians with more than $1 million in investable assets said they expected to be treated favourably because of their asset level. Personalized contact was the most common type of favourable treatment sought by millionaires, followed by account discounts, proactive contact and special phone lines.

“Although special phone lines are a common offering, they are last on millionaires’ list of preferred services,” says Forrester’s Ekaterina Walsh. “Instead these customers value personalized contact. Charles Schwab understands this: every million-dollar customer is served by a small team of the firm’s best service reps.”

That’s a philosophy shared by Thane Stenner of the Stenner Group at CIBC Wood Gundy in Vancouver. Stenner has actually reduced the number of high net worth clients he serves, while adding to his own team.

“By maintaining a high team/client ratio, we ensure each client family receives the care and attention it deserves,” Stenner said in a recent interview with Advisor’s Edge.

The Forrester study also found that North American millionaires use an average of 1.6 advisors and that 91% have multiple accounts with the same firm.

“Millionaires use more advisors and have more advanced concerns than their peers, such as asset allocation,” says Walsh. “The upside to providing more attention? They have more assets.”

About one-third said they would rather pay others to handle their finances. However, 30% said their most pressing financial concern was deciding when and how to buy and sell stocks, suggesting the do-it-yourself approach is still popular among the wealthy.

Cap Gemini Ernst Young estimates there are more than 300,000 Canadians with investable assets of $1 million. That number is expected to triple by 2010.

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Curious for more detailed insight into how to service your millionaire clients better and keep them happy? Read “True Wealth” in Advisor’s Edge, a new column starting in January 2003 by Thane Stenner.

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Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca