And this is certainly high on the agenda at ActiFi, the coaching, software and consulting firm. Last December, it unveiled Actifi Client Engagement, a program – powered by the Client Audit – that is designed to help advisors collect and then leverage data from client feedback.

It is an example of “the whole being greater than the sum of the parts,” said Gail Graham, chief marketing officer at United Capital Financial Advisors, at the time.

Family Wealth Report spoke to Spenser Segal, founder at ActiFi, about the benefits of using a client engagement tool such as the one his firm provides, as well as how to achieve best results from doing so.

ActiFi Client Engagement offers three levels: impact, innovate and transform.

“Impact,” the foundation of every program, analyzes client feedback, provides advisor- and client-level reporting, and access to online tools and resources. This tier is recommended for advisors who are comfortable “doing things on their own.”

The “innovate” level offers guidance in choosing questions, interpreting results and creating an action plan – delivered by a senior consultant over a three-month period. This level is aimed at advisors who “prefer some assistance in setting up the program and who feel they need someone to help them understand how to take action.”

Meanwhile, “transform” provides coaching to help advisors execute a plan to drive engagement and ultimately growth, along with access to a range of tools and resources, delivered by an experienced coach over a six-month period. This tier is aimed at advisors who “desire a coach to be with them every step of the way.”

Implementing the program costs in the region of $1,495 to $5,995, depending on the tier.

Opportunity

“We have spent a lot of time on the execution part,” Segal said. “The reality is that 100 per cent of the business value comes from the effectiveness of what are you going to do with the acquired insight.” Crucially, by not doing anything at all with it, you may end up actually doing a dis-service to clients, who have taken the time to provide feedback.

Segal believes there is a “genuine opportunity” for advisors to enhance their client engagement strategies and overall value proposition by seeking and analyzing client feedback.

“A lot of the time there is a misunderstanding between advisors and clients over what kinds of services they want,” he said, adding that there is a big difference between being content and truly engaged, he added. “There are clients who feel happy, loyal and trusting, but they're not engaged and therefore not as satisfied as they perhaps could be.”

And, usually, there are a small number of things that truly matter to the client or are on their minds. Being able to nail even just a few of these issues can really help drive up satisfaction levels dramatically, Segal said.

“There are a lot of things that have nothing to do with performance, for example, that matter a ton to the client,” he added. “Small changes can make a big impact.”

As Segal pointed out, there is often a big gap between those advisors who say they should and want to engage in formal client feedback, and those that actually do.

“We all have a list of things we positively are going to do, and only a portion actually gets done,” he said. “Is it on many advisors' list of things that they should do? Absolutely. But the percentage that actually do it, and implement it effectively, is much smaller.”