According to Business Health’s latest research, while 71% of clients believe they have close contact with their adviser, just 37% indicate they would remain with the same firm if their adviser changed. (Business Health Consolidated CATScan Analysis, April 2026.)

The general consensus we have received from our work with advice firms all over the country is that attracting clients isn’t a problem. There’s no shortage of new clients, with referrals from existing clients and strategic alliances continuing to dominate new client acquisition strategies. And when you throw mergers and acquisitions into the mix, the rapid flow of new clients into some advice firms can be substantial – the proverbial fire hydrant if you will!

To date, client retention rates have remained historically high (90%+ for US and 95%+ for Australia) and while this is no doubt reassuring, such high retention rates do not necessarily equate to satisfied clients. Consider that we are also seeing historically high amounts of change and disruption; a high percentage of clients transitioning to retirement, baby-boomer wealth transfer, industry bad press, high numbers of mergers/acquisitions etc.

It is likely that for many clients, especially after a change in circumstances (for themselves or their advice firm), the ‘status quo bias’ is in play – where some clients opt to continue with their current advice firm because they perceive that finding another adviser would entail too much work and a whole lot of bother. But if an opportunity to switch is offered, from a new, more suitable adviser, they’ll grab the chance.

While retaining clients is obviously desirable, and profitable, they are only retained until they’re not, and work is always needed to ensure client satisfaction and retention;

“Success is not owned, but rather it is leased and the rent is due every day” – JJ Watt, NFL’s Defensive Player of the Year 2012, 2014 and 2015.

A quiet client is not necessarily a happy one, and while client longevity has always been an indicator of client satisfaction – is it reasonable to expect this trend to continue unchallenged? The best way to make sure your ‘success rent’ is paid, is through continual positive engagement with your clients.

It’s been our experience, observed for over 25 years, that advisers who build the strongest client relationships aren’t necessarily the ones with the most resources. But rather, they’re the ones who help clients feel the value of those resources consistently.

12 ways to proactively engage with clients…

  1. It costs less to retain a valued client than it takes to attract/onboard a new one. So share the retention ‘upside’ with your team.
  2. Make your retention rate a key performance indicator for your business; ensure it is tracked and monitored in your management meetings, respond as the findings require.
  3. Thank an existing client who refers a friend to your business (a handwritten note or surprise gift). And keep them informed as to the progress of their referral.
  4. Build time into every client meeting to highlight something that might be new to them, a tool they haven’t used, a service they will value.
  5. Prepare a proactive, intentional communication piece, not a newsletter but a direct, personal note that says: here’s what changed, here’s why it matters to you.
  6. Make a milestone call to recognise clients for being your client for XX years. Or pick up the phone for an unprompted, unscripted “how’s things?” call.
  7. While virtual meetings are convenient, they can’t fully substitute for ‘in-person’. Strive to hold at least one in-person meeting each year with every client.
  8. To be able to deliver the above, your CRM needs to be proactively managed, updated regularly and hold the all-important relationship building info; children/parent’s names and dates of birth; next o/s holiday; retirement plans, charitable interests and so on.
  9. Continually seek your client’s feedback at key trigger points – when they join, after key changes, every couple of years and when they leave you.
  10. Understand the ‘why’ when a client unexpectedly leaves you. Delegate responsibility to one person within your practice to ask the question – the same way, each time. Analyse and respond accordingly.
  11. Create a client advisory board (this is not an advisory board for business) and invite key clients to participate.
  12. While in-person client events such as seminars, luncheons and ‘recognition’ dinners fell by the wayside during the Covid period, we sense they’re regaining their popularity as an important relationship building strategy.

It’s me, not you…

Finally, you may not want to keep all of your clients. If you have a client who doesn’t fit, who you can’t help, or it’s just not working for either of you – it’s far better to make the call sooner and look for an alternative solution. Perhaps by introducing the client to another adviser who is better aligned with their needs and expectations. Transitioning in a timely and respectful manner will usually produce a positive outcome for all parties.

Yours in best practice,

Terry Bell,

Business Health Pty Ltd.