In a recent study, industry research group LIMRA asked consumers to rank the five factors which are most important to them when seeking financial advice.
Delivery method and cost ranked as the top factor with one-third of consumers surveyed ranking these first. For instance, LIMRA found that consumers ranked lower cost methods such as online platforms and robo-advice more favorably than seeking advice with a financial professional. “This suggests that while consumers recognize the need for professional advice, not all are willing to pay top dollar for it,” says LIMRA.
Consumers value trust
The next most important factor consumers listed was trust. The study revealed consumers prefer advice models they trust, illustrating the importance of using testimonials and building relationships, says LIMRA.
The third most important factor was the company’s reputation. Consumers prefer to go with a brand they recognize, even when they don’t have strong opinions when searching for financial advice, found the study.
The fourth factor was capabilities. Consumers prefer to address all their financial issues at once, rather than to meet with different advisors for each specific need.
The fifth factor in the ranking was the referral source. “From a consumer perspective, referrals are the least important of the five factors studied. That being said, a positive referral is likely to increase trust and boost your company’s brand value in the mindset of the consumer,” says LIMRA.
LIMRA members may read the full report, What Will They Pay For.