Adviser review site VouchedFor has launched a tool to allow advisers to track their performance with clients against industry averages.
Called ‘Safeguard’, the system has analysed more than 250,000 client reviews. Out of this analysis, it has drawn three key differentiators for good advice: first impressions, existing customer retention and client safeguarding to mitigate risk.
The tool will show advisers how they track against these three differentiators, and benchmark how they compare with advice firms from the rest of the industry.
Initially, the benchmark tool will launch with a pilot group of 16 firms, including Ascot Lloyd, TPO, Mazars and One Financial Solutions.
Those advice firms piloting the newly launched service will pay £3,600 a year, alongside VAT, for every ten employees.
The review site said the tool was inspired by research it did with advice firms, alongside the Financial Conduct Authority’s new consumer duty and guidance for firms on the fair treatment of vulnerable customers papers.
“Encouragingly, the direction of travel within the industry is towards better consumer protection and a greater focus on client experience,” said Alex Whitson, managing director of VouchedFor.
“Many firms want to accelerate this, by understanding what their clients really think at each stage of their journey and ensuring they consistently exceed expectations.”
Whitson said the revenue potential for advice firms off the back of using this tool was “huge”.
Some 97 per cent of clients told VouchedFor they would consider recommending their adviser, but only 42 per cent actually do.
“Advisers can grow the recommendations they receive by changing things like contact frequency, fee clarity or how they talk about goals,” he explained.
Data collected by the firm also showed 40 per cent of clients show evidence of at least one major risk factor, such as not being comfortable discussing vulnerabilities with their adviser or not understanding fees.
Whitson said these statistics are why Safeguard has also been designed to mitigate risk.