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Customer Loyalty in long-term investments 2007

Published by: Datamonitor

Published: Apr. 17, 2007 - 24 Pages


Table of Contents


Overview

Catalyst

Summary

Executive Summary

Why is loyalty important?

Why do long-term financial services lag behind other areas of the industry?

Customer loyalty in the financial services industry is set to worsen

Various methods of improving customer loyalty have been attempted in financial services

Taking steps to improve loyalty

Practical steps to improving loyalty

Organizational steps to improving loyalty

APPENDIX

Definitions

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

Table of figures

Figure 1: More complex financial services products are harder for providers to promote loyalty

Figure 2: 59% of wealth managers think customer loyalty has decreased

Figure 3: Sales to existing customers peak around age 40




Table of tables




Table 1: % of IFAs operating a percentage of fee-based business

Abstract

Introduction

There is currently little loyalty for providers of long-term financial services & this is set to worsen. Any attempt to encourage loyalty through schemes used elsewhere such as in the credit card market will have little success. The best way to encourage loyalty is by targeting the intermediaries, however in the current remuneration environment there is little progress that can be made.

Scope

This report looks at those strategies used elsewhere in the financial services market and assesses their usefulness to providers of long-term savings. It identifies the shortcomings of these strategies and highlights those that could be used by providers in this, more complex, market.

Highlights

Improving loyalty is vital, although the long-term area of the financial services industry lags behind that of the simpler areas of the market, such as credit cards and current accounts. There is little scope for lessons learnt elsewhere in the financial services industry to translate through to investments and long-term savings. Any progress that can be made in the long-term financial services industry needs to be made through a combination of changing remuneration structures and proactive strategic movements.

Reasons to Purchase

Identify those strategies that could be useful in improving customer loyalty throughout your organisation See the shortcomings of more traditional loyalty schemes and understand why they do not translate across the industry Understand the cost that lack of customer loyalty has within the long-term savings and investment markets

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