6 traits of highly successful advisors

Client retention is one of the least-understood aspects of being a successful advisor.

Now, a study by PriceMetrix finds advisors with higher client retention rates growth their assets and revenue faster than their colleagues. It found six keys to understanding and achieving high retention rates:

Different stages of the client relationship are more attrition-prone than others. Pay most attention to relationships in years two to four because clients are likely to leave early on.
Younger clients and those with less assets are more likely to leave. (Read: Advising Gen Y)
If you have many clients with less than $250,000 in assets, you’re more likely to lose your larger clients. Be aware that smaller clients could be distracting focus from those with more in their porfolios. (Read: Small accounts are a drag: PriceMetrix)
Advisors who are both transactional and fee-based are most likely to retain clients. Consider transitioning a portion of your business to the alternate model. (Read: Switch clients to your form of comp)
Over- or under-pricing advice will make clients more likely to leave. “Advisors should know their business model, how their pricing is supported by their value proposition (and informed by market data), and communicate the value they provide to their clients,” states the report. (Read: How to undo fee discounts)
Deeper client relationships pay off. If a client has assets at other firms, the advisor should work to strengthen ties. (Read: Ask clients to consolidate)