IFAs have been told to nurture customer loyalty if they want their
business to succeed and profits to grow.
The message was delivered jointly by the Royal Mail and Prudential
Intermediary Division to members of IFA network Berkeley Independent
Advisers at their recent national conference in Birmingham.
The Royal Mail presented research by the Office of Consumer Affairs which
shows it costs six times more to acquire a new customer than it does to do
business with an exist ing one.
The research shows 67 per cent of consumers only change their providers
because of either lack of contact or indifference from the provider
compared with 60 per cent who remain loyal to firms that keep in touch.
The Royal Mail has been working in partnership with the Pru in a project
to help financial services companies to use the postal system more
Berkeley's members were told it is crucial for IFAs to maintain and
develop dialogue with their existing customers due to the changing IFA
marketplace, which has seen the growth of direct-sales channels, increasing
regulations and product changes, including Isas and stakeholder.
Royal Mail head of sector development Isabel Wade says: “Building customer
loyalty and effective customer retention is critical to increasing profits.
“Customer communication is a vital element of that relationship building
Prudential direct marketing consultant Shona Crawford says: “We are
pleased to be working closely with the Royal Mail to help provide direct
marketing advice to this important channel.”