Wealth managers believe customer satisfaction depends on client service rather than investment expertise, according to research by SEI in th...

Wealth managers believe customer satisfaction depends on client service rather than investment expertise, according to research by SEI in the US.

Forty-one bank-based wealth management executives responded to the online poll. Wealth management executives were asked a brief series of questions to uncover their perceptions of the key factors driving their wealthy clients' satisfaction. The results seem to contradict the many product-centric business models found in the wealth management industry today, said SEI.

When asked to identify the most important factor in customer satisfaction, less than 5 per cent of those surveyed cited their investment expertise, while more than 70 per cent pointed to the client relationship.

A breakdown of the 70 per cent indicated that approximately half felt "client service" matters most. Another 20 per cent felt the personal relationship between client and private banker was the most critical factor. Over 75 per cent reported that poor client service was the greatest reason for clients leaving.

Al Chiaradonna, head of global strategy and innovation for SEI's private banking and trust business, said: "While quality of investment advice certainly matters, wealth managers clearly understand they need to create deeper, broader relationships with their clients. The best way to achieve this is through creating a different client experience that ties solutions and services to client needs. We feel this new experience needs to start with the very first interaction between advisor and client."

Mr Chiaradonna recently published a report entitled "Discovery: A Fresh Approach to Building Relationships with Wealthy Boomers", the first in a series that will examine the need for wealth managers to transform their business in order to successfully meet the needs of the emerging baby boomer wealth market.