Shifting Drivers of Advisor Loyalty in the Affluent Market

Shifting Drivers of Advisor Loyalty

Every year, The Phoenix AMS Tracking Program undertakes an analysis of the factors that are most important in developing loyalty among affluent clients of financial advisors.  As a result of market or economic conditions, these factors, or “loyalty drivers," tend to change or shift position in relative importance from year to year. 

An analysis of the past three years shows some important shifts in advisor loyalty drivers among affluent investors.  In 2005-06, the level of knowledge (quality of advice), and the ability of the advisor to foster trust among the affluent client were the most important keys to client loyalty.  Given the consistently strong stock market performance of this period, investment performance was a relatively less important loyalty driver.

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