How often do you communicate gratitude to your clients? Do you express your appreciation systematically or more opportunistically? Did you know that expressing gratitude to your clients can increase your AUM?

In a recent survey of advisors, Janus Labs found that 74 percent of advisors regularly thanked their clients, while 23 percent occasionally did, 2 percent rarely did and 1 percent never did, except as a formality.* The study found that there were two distinct approaches to practicing gratitude: the ad hoc approach and the systematic approach. The divide among advisors was very much down the middle, with 51 percent employing the former and 49 percent using the latter.

The ad hoc approach is more opportunistic in style; for example, a “thank you” to end a client call or meeting. The systematic approach is more deliberate; it’s an annual get together or a formal recognition of a client’s anniversary date. Not only are these two approaches radically different, but they result in radically different outcomes.

Janus Labs found that advisors with a systematic approach managed, on average, $30 million more than those who relied on an ad hoc approach, and experienced a substantially higher growth rate of assets under management (AUM). In the 12 months prior to the survey, AUM growth for the ad hoc advisors was 10.8 percent, compared to 13.2 percent growth for the systematic advisors—a 22 percent higher rate of AUM growth!

Gratitude Begets Happiness

An increase in AUM is not the only benefit of the systematic approach to gratitude. It may also make the advisor feel happier and more successful in his or her career. When asked on the survey if they felt extremely successful in their practice, 37 percent of advisors using the systematic approach said “yes,” while just 24 percent of advisors employing the ad hoc approach answered in the affirmative.

When advisors were asked if they felt satisfied in their career, the gap was even wider, with 57 percent of systematic advisors agreeing, compared to 37 percent for ad hoc advisors.

Gratitude Begets Gratitude

In the final finding of this survey, 62 percent of systematic advisors said that they receive a lot of gratitude from clients, compared with just 49 percent of ad hoc advisors.

It seems that a purposeful plan to show clients your appreciation may be the best and simplest way to grow your business and improve your personal happiness.

Source: * https://www.janus.com/advisor/advisor-resources/janus-labs/gratitude-gains

See referenced disclosure (2) at https://blog-dev.americanportfolios.com/disclosures/