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Providing sound advice is a big part of earning customer loyalty in the brokerage business—but it's not enough. Bain & Company analysis of a new survey by J.D. Power of 6,500 investors in the US suggests that brokerage firms can capture more of the benefits from customer loyalty by offering an excellent digital experience around planning, reviewing and adjusting investments. The chart shows that digital intensity in a customer's interactions correlates with a higher Net Promoter Score® (a key metric of loyalty) for the firm, as opposed to the individual adviser. Firms with the highest loyalty score—USAA, Fidelity and Charles Schwab—also lead their peers in the degree of their digital, self-serve model.
Net Promoter®, Net Promoter System®, Net Promoter Score® and NPS® are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.
Andrew Edwards is a partner in Bain's Private Equity and Financial Services practices.
First published in Dezember 2017