Financial advisors are forever analyzing their businesses, trying to figure out how to improve revenue and profitability. Turns out, nothing beats actual time spent with clients, according a survey by Rydex AdvisorBenchmarking, an affiliate of mutual fund manager Rydex Investments of Rockville, Md. “Unfortunately, our data show that few advisors grasp the importance of strengthening client relationships,” the survey authors write. Just one in 10 advisors spends more than 60 percent of his time in front of clients; almost half spend less than 30 percent. The survey concludes: “The vast majority of advisors are failing to provide what their clients want most — their time.”
Clients are happier when advisors pay close attention to them, and the research suggests that this can manifest itself in more business. The chart below shows that the small fraction of advisors who spent more than 60 percent of their time with clients enjoyed profits that were eight times greater than their peers who spent less time with their clients.