Customer loyalty is more important to IFAs than the search for new business, says a survey by Devon-based IFA network Berkeley Wodehouse Associates.
The survey finds that one of the main challenges facing IFAs is the extent of their workload and they risk neglecting existing customers in trying to get new business.
The survey covered 175 BWA members. Over a third of members said had seen 20 per cent of their clients in the past six months.
Respondents said financially inactive clients were the most difficult to contact. Most IFAs contact their inactive clients by phone. Some IFAs contact their clients at spec ific times and 21 per cent when it is appropriate for that client.
BWA says IFAs need to keep in regular contact with their clients to make them feel valued. It says phoning, e-mailing or personal visits are often too time consuming and that other marketing initiatives should be considered such as mailshots or newsletters.
BWA chief executive Malcolm Streatfield says: “It costs a great deal more to find a new client than it does to keep an existing one. Keeping a client loyal has the same effect as cutting 10 per cent off your overheads.”