Loyalty Has Benefits On and Off the Field

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With Super Bowl LII behind us, the professional football season of 2017–2018 is over but a tremendous amount of loyalty remains among New England Patriots and Philadelphia Eagles fans. One doesn’t have to spend too long watching an NFL game to witness what loyal fans will do to cheer on their team in the pouring rain, sub-zero temperatures, or near-whiteout snowfall. The feeling of support and allegiance from fans for their teams is palpable.

What drives fan loyalty? The team, an individual player, the coach, the owner or various combinations of all of the above. Influence on loyalty from a combination of factors also holds true for investors working with advisors and other investment professionals and their respective firms. In fact, the industry average loyalty to an investment firm among advised investors is substantially higher than among the overall affluent investor population, indicating that the inclusion of a financial advisor or other type of investment professional offering advice is key to client loyalty, referrals and retention.

Recent findings from our investor research show that quality of investment advice and financial stability drive loyalty among advised investors. This suggests that a combination of the advice being delivered, whether from a financial advisor or other investment professional, and the financial stability of the distributor firm have the greatest influence on an advised investor’s commitment to award repeat business and engage with the brand.

With each of the remaining drivers, both the distributor firm and financial advisor or investment professional play a role. Both have the capacity to demonstrate being easy to business with, offer a broad range of investment offerings and provide retirement planning to clients.

Top Five Drivers of Distributor Firm Loyalty

Rank             Driver
1                    Quality of investment advice
2                    Financial stability
3                    Easy to do business with
4                    Range of investment products and services
5                    Retirement planning services

Base: Advised investors working with financial advisors or other investment professionals
Source: Market Strategies International. Cogent Reports™. Investor Brand Builder™. November 2017.

Distributor firms enjoying the highest levels of advised client loyalty include LPL Financial and Edward Jones. These firms leverage national networks of financial advisors to whom they offer access to dedicated investment research teams to enhance the quality of advice provided. As well, the benefits of scale for these distributor firms help ensure financial stability.

Top Five Distributor Firms for Client Loyalty

Rank             Distributor Firm
1                    LPL Financial
2                    Edward Jones
3                    USAA
4                    TIAA
5                    Lincoln Financial Network

Base: Advised investors working with financial advisors or other investment professionals
Source: Market Strategies International. Cogent Reports™. Investor Brand Builder™. November 2017.

While loyalty for a football team may require braving the elements and enduring defeat, loyalty among investors equates to opportunities for distributor firms to retain assets, grow client and advisor relationships, and ultimately, benefit from continued brand advocacy.


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Read Not All Trust in the Financial Industry Is Lost

This entry was posted in Brand and Messaging, Financial Services and tagged by Julia Johnston-Ketterer. Bookmark the permalink.
Julia Johnston-Ketterer

About Julia Johnston-Ketterer

Julia Johnston-Ketterer is a senior director in the Syndicated Research division. She has more than 15 years of experience leading research initiatives on the client- and supply-sides of the financial services industry focusing on investors, advisors and broker-dealers. Prior to joining Market Strategies, Julia was vice president of business development for Market Probe, Inc. and research associate for Richard Day Research, where she managed financial services clients and conducted client satisfaction studies and PR research programs. Julia also spent ten years at Fidelity Investments. While there, she built a research team that provided primary and secondary research to internal marketing and communications partners. Julia earned an MBA in finance and communications from Simmons School of Management and a bachelor’s degree in French and international relations from the University of Wisconsin-Madison. While she can claim having twice bungee-jumped in New Zealand, Julia’s current adventures outside of work include being a hockey mom, taking hikes with her dog and planning her next family beach vacation.

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