Very often, when a financial advisor tries to get the business of a new investor client, the advisor will make a number of promises. Not all of these relate to the investor’s portfolio.

Some advisors fail to understand that affluent investors have very good memories and expect their advisors’ commitments to be kept. “Nothing can destroy an affluent client relationship more quickly than a financial advisor’s failure to deliver on all promises,” comments Matt Oechsli, president of Oechsli Institute. “This is a dangerous approach if the advisor is not sure he can follow through.”

Research indicates that 8 of 10 affluent clients are dissatisfied enough that they would consider changing advisors if they knew of a better option, writes Oechsli in Registered Rep. He believes the key to advisor-client relationships can be summed up in one word, “loyalty.” He notes that loyalty is a long-term behavior that is earned, while satisfaction is a short-term emotional response.

According to Oechsli, there are a number of criteria the best advisors use to build loyalty with their clients. Among them: resolving problems quickly; meeting performance expectations; notifying clients of events that impact their investments; understanding client’s situation; revealing clearly fee structure; exhibiting concern for more than just the investment side, and assisting the client in executing a formal investment plan.

“The best advisors are constantly and feverishly working on developing loyalty among their affluent clients, because only loyal clients will allow an advisor to contact their centers of influence,” observes Oechsli.