what clients really think

8/13/2019 What Clients Really Think

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What Do Clients Really Think?How Elite Advisors Use Surveys to Drive Stronger

Client Relationships


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2 |For use with financial professionals only.

Introduction

What is the value of asking your clients for feedback about you and your practice? In addition to the

answers you may receive that can help you tailor your services to better meet their needs and ex-

pectations, asking your clients to tell you what you are doing well and what you could be doing better

shows that you are dedicated to consistently improving your service to them: a demonstration that

will reflect positively on you and strengthen your client relationships.

But there is also a likely economic benefit for you as well. As reported in a previous white-paper col-

laboration between Cetera Financial Group and the international consulting firm Business Health, The

Pulse of Practice Health: An Insight into the Health of Elite Advisors Firms , advisors who formally ask their

clients to complete satisfaction surveys generate 31 percent more revenue on average than peers who

do not solicit client feedback.

Key Value Driver:

Formally Ask for Feedback

Revenue per

Principal

Increase in

Revenue

No

Yes

$475,242

$622,280

31%

Given this, we were somewhat surprised that fewer than half the practices in the country formally

survey their clients. The importance of regularly seeking feedback from clients can never be overesti-

mated, and it is a risk to assume that you know what your clients are thinking, or that a quiet client is

necessarily a satisfied client. This is true within any market condition, but even more so in the wake

of the increased market volatility, high-profile corporate collapses, multiple government inquiries and

negative press the financial services sector has endured over the past few years.

Except where noted, this paper draws upon the results from 3,056 active clients who completed

the Business HealthCATScan client satisfaction survey from 2010 to 2011. Our analysis provides

a high-level overview of those CATScan findings to draw a unique insight into what your clients

might be thinking, while uncovering ways you can use surveys to drive greater client satisfaction

for your practice.

Table 11

1Data cited from the Business Health HealthCheck was collected in a study of more than

2,000 U.S. financial advisory practices surveyed from 2009-2011.


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Process Overview and Summary

of Key Results

Each of the 3,056 participants in the study rated their advisors service along nine key performance

indicators (KPIs), as shown in Figure 1, using the CATScans 1-5 rating scale, where 1 indicates verypoor performance that rarely meets expectations and 5 indicates excellent performance in which

expectations are always met and consistently exceeded (see Appendix A on page 20).

4.2

0

4.2

5

4.3

0

4.3

5

4.4

0

4.4

5

4.5

0

4.5

5

4.6

0

4.6

5

4.7

0

Financial Review Process

Communication

Range of Financial Services

Implementation of Solutions

Understanding

Financial Knowledge

Standard of Support Staff

Professionalism of Business Practice

Business Relationship

The results indicate a high degree of overall client satisfaction in most of the key performance

indicators measured. The national average score across the entire data set was 4.51, with Business

Relationshiprated highest with an average score of 4.66, and the Financial Review Processreceiving

the lowest score of 4.28.

It might appear, then, that clients are very happy with the service they are receiving from their finan-

cial advisors. However, it should be noted that our data set is heavily influenced by best practice

firms: high-performing, well-run businesses that tend to be the most likely to invest time, effort and

Figure 1 | Client Satisfaction - National Average


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money in using a tool like the CATScan to seek client feedback. Nonetheless, there are numerous con-

clusions that can be drawn from the data and extrapolated to practices representing the full spectrum

of performance.

Even these best practice firms have significant opportunity to enhance their services. Table 2

shows how the overall performance indexa relative indication of the greatest opportunities for

improvement from the clients perspectivewas calculated.

Rank KPI Score Varianceto

Average

Differenceto Minimum

(3.80)

% AboveMinimum

Perfor-manceIndex

1Business

Relationship 4.66 .15 .86 23% 100.0%

2 Professionalism

of Practice4.62 .11 .82 21% 94.9%

3Quality of

Support Staff4.60 .09 .80 21% 93.2%

4 Financial

Knowledge4.58 .07 .78 21% 90.9%

5 Understanding 4.52 .01 .72 19% 84.0%

6Implementation

of Solutions4.44 .07 .64 17% 74.5%

7Range of

Services4.43 .07 .63 17% 73.9%

8 Communication 4.40 .11 .60 16% 69.3%

9Financial Review

Process

4.28 .23 .48 13% 55.3%

Overall Average 4.51

Table 2


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Variance to Average

This measure calculates whether the KPI score was above or below the overall average. As shown

in Table 2, Implementation of Solutions, Range of Financial Services, Communication andFinancial Review

Processwere all below average.

Difference to Minimum

The absolute minimum figure of 3.80 is based on all of the CATScan results to date and is the lowestthat we would expect an advisor to score on any measure. The difference to minimum shows how

each KPI fared relative to this absolute minimum.

Performance Index

This comparison is a measure of how each KPI fares relative to the absolute minimum as well as the

highest score, and is extremely useful in interpreting how clients are grading performance both

within each KPI and in relation to the other KPIs.

Further Client Segmentation

The responses within each KPI measure were further segmented to compare key demographic

differences between respondents. Data was broken down by client income, depth of connection

with their advisor, gender, and age. And while every client is unique and unlikely to be a perfect

reflection of their demographic, understanding key demographic differences can make it easier to

cater your services, marketing, and even office environment to meet not only the needs of your

clients, but their expectations as well.

As you review the following sections and each demographic KPI breakdown, keep in mind that the

key value of asking your clients what they think about your practice is not simply to improve your

numbers from one survey to the next, but rather to open a dialogue between you and your clients

that will ultimately strengthen your relationships with them. That, in turn, will be what drives better

results across survey periods.

Open a dialogue between you and

your clients that will ultimately

strengthen your relationships with them.


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The Effect of Client Income

Just under half (47 percent) of the clients that participated in the CATScan stated they earn an annual

income of less than $75,000, with almost one in four clients earning less than $30,000.

As Figure 2 shows, clients with household incomes in excess of $75,000 per year are less satisfied

with their advisors performance across all nine of the key service delivery areas than their less-afflu-

ent counterparts. In short, higher income earners are more difficult to completely satisfy.

4.2

4.3

4.4

4.5

4.6

4.7

4.8

More than $75,000Less than $50,000

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However, for many advisors and for obvious reasons, the higher a clients net worth, the higher their

desirability. And while the number of truly high-net-worth individuals has decreased over recentyears, they continue to be actively courted by an increasing number of advisory businessesthere is

no doubt that competition in this relatively small segment of the market remains intense.

To keep your firm as competitive as possible to wealthier clients and to ensure you are living up to

their expectations, it is important to keep their perspective in mind with the following considerations:

Figure 2 | Client Satisfaction - By Household Income


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Understand and Carefully Manage Service Expectations

Higher income earners generally have much higher service delivery expectations. They tend to mea-

sure and benchmark the service they receive from their advisory practice not necessarily against

other companies in the financial services arena, but rather against global best practices regardless

of the specific industry. On this mark, you are not just competing with other advisors, but any given

clients ideal vision of service.

Advisors choosing to specialize in this market must take a very active role in setting and managing

their clients expectations. If this is not done effectively (and continually reinforced after every mean-

ingful client contact), advisors may find themselves faced with completely impractical or unrealistic

hurdles to meet.

Broaden Your Solution Suite

Affluent clients can have a broad range of complex needs that require advice from specialists across a

number of different areas, such as legal and tax advisors. Advisors need to carefully evaluate whether

they have the skills and knowledge to add real value to these clients before the need arises. If they

dont, clients may transfer assets to an advisor or firm that does.

Depending on the needs of your clients, you can increase your firms capabilities by partnering with or

developing a strong and trusted alliance with other professional service providers. For advisors at the

broker-dealers of Cetera Financial Group, we remove this oftentimes challenging hurdle through the

one-on-one consultative advice of our Advanced Planning Group, comprised of legal, tax, and wealth

transfer specialists who can deliver definitive advice on complex financial planning matters as needed.

If your firm does not provide such expertise in-house, you can draw on your centers of influence or

other professional networks to find people with whom to work and form a referral alliance.

Position Yourself as an Industry Leader

Because of their desirability as clients, affluent individuals are more likely to have their choice of

people servicing their financial needs. Advisors who are not widely acknowledged as one of the pre-mier suppliers of financial advice to successful members of your local community may be at a distinct

disadvantage when it comes to attracting and retaining higher income clients.

Advisors choosing to specialize in this

market must take a very active role in setting

and managing their clients expectations.


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As your clients move up the income scale, your firms reputation and positioning, along with your own

personal profile, become increasingly important. All aspects of your business must be able to stand

up to a thorough and discerning due-diligence process. Manage and work to heighten your reputation

carefully, both online and within the communitywhether by referrals, affiliations, philanthropy or

social or cause involvement.

Serious consideration must also be given to the location, look, feel and amenities of your office. Theyneed to be in keeping with those of the other professionalswhether within the financial services

sector or notwith whom this target market may also be working.

Surround Yourself with a Great Team

While all clients, regardless of their salary or investable funds, put a premium on the relationship

they have with their key advisor, higher income earners expect the same level of excellence and

professionalism from everyone involved in managing their financial affairs. From the administra-

tive professional who answers the phone and books appointments to junior advisors who assist in

processing requests and reaching out to clients legal and tax advisors, all staff need to excel at what

they do and project the image high-net-worth clientsand their families and outside advisorsex-

pect. Personal connections are a must.

Be Referrable

As with any connected community, endorsements from respected friends, family or colleagues are

incredibly important when dealing with the more affluent. Advisors must ensure that their most valu-

able clients understand and appreciate that they value referrals and continually create opportunities

to explore how they may be able to help others within their social network. Hosting and inviting clients

and their friends to strictly social events, such as a local sporting event, art show, or wine tasting,

where business talk is initiated onlyif at allby your guests, is an excellent way to generate referrals

and strengthen your connections with your existing clients.

Be JudiciousIt can seem counterintuitive, but bigger is not always better. The clients with the highest net worth or

annual income do not automatically translate into the most profitable ones for your firm. Affluent cli-

ents who tie up or otherwise tax a significant part of your or your staffs time can limit your prospects

for business growth. In addition, the overhead and staff required to meet the service needs of even

the most reasonable high-net-worth clients may not generate the income you would expect (see the

white paper Growth Tactics of Elite Advisorsfor more on this subject).

Ensure you take the time to measure not just the economic gain each client brings to your business,

but the economic drain as well. Without the ability to conduct such an analysis, you could grow your-

self into a less profitable practice.
http://www.cetera.com/advisor-resources/thought-leadership/white-papers/growth-tactics-elite-advisors.htmlhttp://www.cetera.com/advisor-resources/thought-leadership/white-papers/growth-tactics-elite-advisors.html


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The Effect of Client Connectedness

Of the clients surveyed, 79 percent feel they have close business-related contact with their advisor.

This is a key measure, as Figure 3 clearly shows that clients who feel they have close contact with their

advisor score their advisor significantly higher on the other KPIs than those who do not feel they have

a close business relationship with their advisor.

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Close business contact: Yes No

3.2

3.4

3.6

3.8

4.0

4.2

4.4

4.6

4.8

Further analysis of the CATScan data shows that the clients who have been with their advisor for

between 3 to 7 years tend to represent the greatest business risk: when compared to their peers who

have only recently joined a practice or long-term clients who have been with their advisor for 7 or

more years, the clients in the 3 to 7 year band are generally more likely to feel as though their connec-

tion with their advisor leaves something to be desired.

Figure 3 | Client Satisfaction - By Level of Intimacy


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This may not be that surprising when you consider the normal client relationship life cycle. In the early

days, advisors are actively engaged in the comprehensive discovery process and are intent on fully

understanding the needs and wants of their new client. Through the creation of personalized financial

plans and the restructuring of product holdings and investment portfolios, advisors get the chance to

continually showcase the depth of their technical acumen and professional expertise.

At the other extreme, those who have been clients for seven or more years in some ways become al-most rusted on. While great care must be taken never to take these long term clients for granted, the

relationships are usually very strong and the service delivery expectations are appropriately managed

and mutually understood. Their advisor knows them well, they know their advisor well, and provided

there are no unforseen surprises to shake their confidence, things normally progress quite smoothly.

However, the nature of the relationship is different with the clients in the 3 to 7 year bracket. The initial

euphoria that comes from putting together a new financial strategy may have worn off, and there may

not be a need to regularly buy and sell investments, update an asset allocation, change investment

strategies or the like. In cases where the clients do not regularly meet face-to-face with their advisor,

or have few advisor contacts throughout the year, they may be feeling a little unloved and start to

question the relationship promised them at the beginning. So...

What Can Advisors Do to Mitigate the Risk Mid-Term Clients Pose?

Continually Remind Clients of All You Do for Them

Clients sometimes mistakenly make the assumption that if there has been no action on their accounts,

their advisor has done no work. Advisors need to continually remind their clients of all the things they

do for them, even if the individual benefit to the client is not immediately obvious.

In addition, clients dont always remember the depth and breadth of solutions their advisor may be

able to deliver. Case studies and surveys are a great way to educate clients on enhancements to theservice suite or to reposition existing products that may now be appropriate.

Conduct Client Reviews, Not Just Investment Updates

The review meeting is the ideal opportunity for advisors to re-engage with their mid-term clients. And

while many practices have invested countless hours examining the various elements of their review

procedures and agonized over the content and layout of their review reports, clients continually tell us

that advisors often lose sight of what is most importantthe client. Even if a client feels their advisor

is very good at investment updates and product evaluations, in their mind, this does not equate to a

client review.

First and foremostand at the risk of stating the obviousin the clients eyes, a client review must becentered on the client. It should be all about them, their family, their business, their goals, their dreams

and their aspirations. While their investments are obviously important, they should not be the sole

focus of the review.


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An effective and valued review process can lead to greater scope for client referrals, more cross- and

up-selling opportunities, and an enhanced sense of advisor-client connectedness.

Contact, Contact, Contact

As the following table clearly shows, we have been able to prove a direct correlation between A class

client contact and practice revenue. On average, those practices who contact their best clients more

than 12 times per year generate 68 percent more revenue per principal than those who only reach outto their best clients fewer than six times a year.

Key Value Driver:

A Class Client Contacts

Revenue per

Principal

Increase in

Revenue

Fewer than 6 times per yearBetween 6 and 12 times per year

More than 12 times per year

$368,168$447,443

$619,235

22%

68%

It is also interesting to overlay these findings with a deeper analysis of the CATScan data. Where advi-

sors scored highly in the communication section of the CATScan, almost 95 percent of their clients

indicated they would be willing to refer their advisor to friends, family or associates.

However, while the willingness of clients to refer is an extremely important lead indicator, of greater

value to an advisory practice is the number of clients who have actually referred their advisor to some-one they know. Again, the CATScan data shows that the clients of the most effective communicators

have actually referred their advisor over 30 percent more often than the clients of the least effective

communicators.

Based on these findings, all advisors should review the effectiveness of their client communication

programs. There is indeed a very real business benefit in getting this right.

Table 31




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The Effect of Client Gender

Almost half (42 percent) of all the respondents were male. Just under a third (32 percent) of the

clients were female, and almost one in four clients identified themselves as a couple.

As Figure 4 shows, while there was little difference between the satisfaction levels of the female

clients and couples, the male clients scored significantly lower.

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4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

CoupleFemaleMale

Figure 4 | Client Satisfaction - By Gender


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When working with couples, ensure that everyone in the practice relates to these clients as couples

without deferring, either consciously or subconsciously, to just one partner. While this might seem

intuitive and even a strategic imperative, to ensure you are on the right track, ask yourself how you

might handle the following scenarios:

If only one partner can attend the annual review meeting, do you still conduct the meeting or look

to postpone the meeting until they both can attend?

During face-to-face meetings with your couples, do you engage equally with both partners when

it comes to making eye contact, directing supplemental questions, seeking confirmation or ac-

knowledgement, addressing concerns, and so forth?

Is all of your correspondence formally addressed to both partners and are both names used in

the salutation?

When a key decision needs to be made about your clients investments or portfolio, whom do

you call, and do you request authority to proceed from both partners?

When clients have identified themselves as a couple, be sure to treat them as such. You dont want

to come across as partial, or worse yet, sexist. Treating each of the partners with parity is likely to beappreciated by both and will speak to your commitment to client service.

Ensure that everyone in the practice

relates to these clients as couples.


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The Effect of Client Age

With 49 percent of all respondents aged 60 and over, the composite CATScan results are slightly

biased towards this age group. Another 40 percent of the clients were wealth accumulators be-

tween 40 and 59 years of age, and a slim eight percent of the participating clients were under 40. The

remaining three percent did not disclose their age.

As seen in Figure 5, client satisfaction scores varied by age. Across all nine of the key service mea-

sures tracked by the CATScan, older clients were more satisfied with their advisors performance than

their younger counterparts.

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4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

60+ years40-59 years

Figure 5 | Client Satisfaction - By Age


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It is unlikely that advisors are consciously delivering a higher level of service to older clients, though

older clients may have had more time to accumulate wealth than their younger counterparts and

therefore may be more likely to fall into the A client category. Nonetheless, there could be a number

of reasons we find this ratings disparity. Older clients are more likely to have had a longer relation-

ship with their advisor, or may have switched advisors after a previous less-than-optimal experience

and been more selective choosing a replacement. Closer to or already in retirement, they may hold

more conservative portfolios designed to deliver more stable returns, and therefore they may be lesssusceptible to market fluctuations. Older clients are also more likely to be further along in their retire-

ment planning, and have had more time to see the results of their advisors guidance come to fruition.

And of course, being of a different generation, they may simply have different expectationswhether

more realistic or more lenientas to what financial planning can accomplish and what retirement

should be like.

Its Not About Age: Its About Time

Whatever the reason for the difference in satisfaction among older and younger respondents, one key

takeaway is that advisors should not be too worried if their younger clients seem a little less satisfied

with their service than their older clientsthat is the case even among the top practices participat-

ing in this survey. But for any client or any client demographic, including those listed and discussedin this white paper, the most important comparisons are those taken over time, showing whether

individual clients and clients as a whole are trending toward better or worsening satisfaction levels.

The importance of this type of longitudinal information further underscores the value of regular client

satisfaction surveys: its difficult to avoid problemsor capitalize on opportunitiesyou dont know

are there.

Its difficult to avoid problemsor capitalize

on opportunitiesyou dont know are there.


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The Downside of

Key-Person Dependency

One of the real business concerns to emerge from the study was the fact that only 26 percent of

clients surveyed would be confident in having their financial affairs managed by someone else in the

practice other than their current servicing advisor (see Appendix B on page 21, fourth line from bot-

tom). This leaves three quarters of the surveyed clients at risk of leaving if their current advisor was

to leave the business. Because the firms in our survey were high-performing to begin with, this ratio

might actually be less favorable for the average practice.

Given that at many firms the business owner is also the advisor to the key clients, it would appear

that mediating principal dependency should be given careful examination. This may not have been

a significant consideration in the past, but now that the average age of practice principals is 57, and

many owners are starting to seriously consider how and when they will exit their business, having a

strong succession plan is becoming more and more important to the long-term health of a practice.

Clients Should Be Personally ConnectedBut to More than One Person

By the very nature of the business and the kind of work advisors do, extremely strong bonds develop

between great advisors and their clients. In fact, of the nine key service delivery areas covered in this

CATScan survey, clients rate the business relationship they have with their advisor above all else. This

depth of relationship is a true business asset. Its strength is not the condition to be mitigated, but

rather its breadth: advisors need to take simple, practical steps to ensure that their clients are suf-

ficiently exposed to potential successors and staff so that they, too, are seen as key people.

If you feel your business may not thrive (or might even struggle to survive) without you, you may want

to consider the following:

1. Introduce all of your key staff to your A and B clients.If your team is one of your businesss great-

est assets, make sure they are not also its best kept secret. Remind clients of how essential your

team is to your business.

2. Continually promote your support team.Publish their names and photos on your website, arm

them with business cards, have them speak at client seminars and develop a contact flyer that

you can include in all new-client material.

3. Make sure you are not the problem.Be disciplined and immediately delegate all administrative

calls and queries to the appropriate member of the team. Dont get involved unless you need to,

and delegate smaller tasks to someone elseas helpful or hands-on as you want to be, your time

is better invested elsewhere.


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4. Whenever possible, conduct client-facing appointments on-site. Make a point to involve key

support staff in these meetings and introduce clients and prospects to the team.

5. Be mindful of the terminology you usewhen referring to the business, the practice, the firm and

the team, using we in place of I where possible.

6. Proactively manage any personnel changes.While it is a fact of life that people move on, dont let

the clients hear about it for the first time when they call and ask to speak to someone who isno longer there. Make sure a plan is put in place to proactively manage the transfer of client

relationships.

7. Find reasons for the key support staff to regularly speak with your clients.Have a proactive cli-

ent communication program that includes all members of your team. Non-business focused client

events are an excellent opportunity for your team to become better known by your top clients.

8. Ensure your support team gets to know your clients personally.Encourage them to make small

talksuch as discussing a clients children, grandchildren, hobbies, etc., as appropriatewhen

clients are in the reception area or call on the phone, even discreetly taking notes if necessary so

as to be able to refer back to these topics later. People typically enjoy talking about themselves

and are appreciative when others demonstrate an interest in them and their lives.

9. Dont forget your referral partners and centers of influence,who also need to be comfortable

working with your staff and confident in their capabilities.

The Value of Succession Planning

Having an effective succession plan doesnt just make practical sense for you, your staff and your cli-

entsit makes good economic sense for you, your business and your family. HealthCheck data shows

that those practices that have an effective succession plan (which of course includes identifying and

addressing any key-person dependencies) deliver 62 percent more revenue per principal than those

that dontmaking it an investment with a return worth the time and effort.

Key Value Driver:

Succession Planning

Revenue per

Principal

Increase in

Revenue

No written plan

Written plan

Effective written plan*

$483,548

$634,158

$785,270

31%

62%

*Written plan, reviewed regularly, covering all contingencies, successor identified, funding in place

Table 41




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Conclusion

It might seem logical that requesting client feedback would be a beneficialif not essentialtool

for creating stronger connections with your clients and developing your practice in ways to better

meet their needs. Nonetheless, as we reported in The Pulse of Practice Health: An Insight into the Health

of Elite Advisors Firms,fewer than half of the advisors polled conduct formal client surveys. If asking

your clients to rate your services feels like an invitation for a barrage of honesty youd prefer to avoid,

or if you feel the costs of creating or outsourcing a survey would be better kept on your bottom line,

you have ample company among your peers. Unfortunately, you and they would be missing the

point. Client surveys are just as effective a way to communicate to your clients as they are a way

to hear from them. In addition, as noted in the introduction, the 31 percent higher revenue for firms

who use client satisfaction surveys versus those who do not is evidence that the opportunity costs

of not querying your clients could be significant.

Surveys Are a Powerful Way to Communicate to Your Clients

The very act of asking your clients for their opinion about you and your business is a crucial touch-

point that speaks volumes to your dedication to, and appreciation for, your clients. It is also an

excellent opportunity to remind them about services they may not even know you have. Every

question has the potential to cross-sell your firms breadth of capabilities, and every client better

informed about what you can do for them is also better equipped to make referrals. Satisfaction

surveys also force your clients to turn subconscious feelings into conscious opinions: while your

clients are most likely quite happy with your services (after all, they are still with you), they may

not realize just how happy they are until actually asked to think about it. And since attitudes tend

to become stronger the more often they are expressed, the act of surveying your clients regularly

(every 18 months or so) can be a powerful tool for building client loyalty even before you begin

addressing any issues your survey reveals.

Surveys Are a Unique Way to Listen

Of course, a well-crafted survey should give you plenty of specific information from your clients

about their expectations and interests in additional products and services. The results should point

out your strengths and weaknesses as well as those of your staff. In short, a good survey data set

can answer for your firm, What next? Do your clients require advanced estate planning, tax and

legal expertise that you dont currently offer? Are your clients looking for more contact or market

updates from you, or would they prefer different forms of communication? Is your product mix

broad enough, and could you benefit from more relationships with other professionals such as

attorneys and accountants?

The act of surveying your clients regularly canbe a powerful tool for building client loyalty.


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Good surveys should ask specific questions that can help you drive improvements to what you deliver

to your clients. While you can create your own survey, one of the biggest advantages of working

with an outside agency with experience surveying financial services clients, aside from the time and

resource savings, is that they can help ensure you ask the questions that will give you the most useful

feedback. Ultimately, your clients will expect action based on the input you are requesting. A suc-

cessful survey is not necessarily one that gives you the feedback that you want to hear, so much as

one that helps you deliver the changes your clients are looking forbefore they look outside your firm.

One of the fastest ways to address changing client needs is to partner with a firm that already has

the resources in place to help you meet them. The family of broker-dealers of Cetera Financial

Group deliver choice and flexibility in the products, services, and innovative solutions they deliver

to support you, your business, and your clients. From our industry-leading wealth management

platform and award-winning technology to the thought leadership and passion of one of the most

forward-thinking and experienced teams in the industry, everything we offer is designed to em-

power our advisors to be the trusted guides of their clients financial futures.

To learn more about how we can help you achieve your growth goals, we encourage you to visit the

Thought Leadership section on any of our broker-dealers websites. Start your search at www.cetera.com.

A successful survey helps you deliver

the changes your clients are looking for

before they look outside your firm.


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Appendix A

Survey Questions

Questions for each key performance indicator asked in the survey are listed below:

KPI Survey Question

1. UnderstandingHow well do you believe your advisor understands your personal

financial needs?

2. Business RelationshipHow comfortable do you feel talking about your financial needs?

What is the level of trust between yourself and your advisor?

3. Financial Knowledge

What level of technical knowledge do you believe your advisor has in

relation to your financial needs? This includes the knowledge contained

within the practice, and its network of associates.

4. Range of Financial ServicesHow well do you think the range of products and services your advisor

offers matches your needs?

5. Implementation of Solutions

How well do you believe your advisor has followed through and

implemented solutions to your financial needs? This may include the

time taken to implement a solution, the process that was followed,

and whether you received what you expected.

6. Practice ProfessionalismHow do you rate the overall professionalism of the practice in termsof its business operations, business premises, furnishings, equipment,

image and location?

7. Standard of Support StaffHow do you rate the standard of the support staff in terms of profes-

sionalism, dependability and courteousness?

8. Financial Review Process

How well does your advisor keep up-to-date with your changing financial

needs? Do they regularly ask for details on your changing circumstances

and update you on whether you are achieving your financial and

personal goals?

9. Communication

What is the standard of communication you receive from your advisor

regarding relevance, quality and frequency of communication, including

letters, newsletters, telephone calls, seminars, etc.?


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Appendix B

Demography of Clients in the Study

Variable Total Numberof Clients

Percent ofTotal Clients


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Disclosures

The material contained in this report represents confidential information and intellectual property

residing within Business Health Pty Ltd. It has been provided on the basis that it will not be conveyed

to any third party without the prior approval of Business Health Pty Ltd.

Business Health Pty Ltd makes no representations or warranties as to the validity, relevance or ac-

curacy of the information provided nor of the capability of any report to achieve any purpose resulting

from its completion.

Business Health Pty Ltd accepts no responsibility whatsoever for any loss or damage suffered by any

user of the services of Business Health Pty Ltd.


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About the Authors

CETERA FINANCIAL GROUP

Cetera Financial Group, Inc. is one of the nations largest privately held, independent broker-dealer

and registered investment adviser families. It provides award-winning wealth management and

advisory platforms, comprehensive broker-dealer and registered investment adviser services, and

innovative technology for more than 6,500 independent financial professionals and more than

600 financial institutions nationwide. Through its four distinct broker-dealers, Cetera Advisors LLC,

Cetera Advisor Networks LLC, Cetera Financial Specialists LLC, and Cetera Investment Services LLC,

Cetera Financial Group offers the benefits of a large, established and well-capitalized firm, while

serving advisors in a way that is customizable to their unique needs and aspirations.

Cetera Financial Group is committed to helping advisors grow their business and strengthen their

relationships with clients. For more information, visit www.cetera.com.

BUSINESS HEALTH PTY LTD

Business Health is an independent organization specializing in advice and solutions to financial advi-

sors. Since its establishment in 2000, Business Health has evolved as one of the leading practice

management groups.

Business Health comprises a team of uniquely qualified and strategically located professionals, with

the ability to deliver results locally or globally as required. Internationally, including the United States,

Australia, South Africa, Hong Kong, United Kingdom and New Zealand, Business Health has estab-

lished a reputation for innovation and cutting-edge solutions.

Our experience in the financial services environment, enhanced by extensive up-to-date knowledgeof international factors and trends, positions us to offer significant expertise in the area of business

development.

For more information, please contact:

Cetera Financial Group, Inc.

200North Sepulveda Blvd.

Suite 1200

El Segundo, CA 90245866.489.3100

www.cetera.com

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