Why Client Retention Strategies Matter For Financial Advisors

« Back to Learning Center

Retaining current clients, according to the Brevet Group, is 6-7x less costly than acquiring new ones. Yes, 6-7x LESS.

If you’re a numbers person, which we’re guessing you are, you’re currently doing the math in your head at how much your time is worth as a financial advisor.

The planning philosophy in place at Consolidated Planning helps our advisors pay special attention to strategies for client retention, not just acquiring more and more clients. 

Whether you have been neglecting your client retention efforts or just need to sharpen your strategy here, this article will help you understand why its beneficial to pay attention to your client retention, and how to improve your client retention, all to take the necessary steps forward in building a better practice.


What Is Client Retention?

Client retention refers to the rate at which a client stays with a company or service overtime. This rate shows a level of loyalty and commitment to the product, service, or in the case of financial advising, the financial advisor.

Your success when it comes to client retention turns your clients into lifelong clients.


How Does Client Retention Compare To Client Acquisition?

Now, as important as client retention is, it’s not possible without first acquiring clients. Acquiring clients is all about getting people into the funnel, by any means possible. However, oftentimes consumers find themselves transacted upon by financial advisors – client acquisition, without the follow through – client retention.

To build a sustainable practice, you can’t have one without the other.


New call-to-action


Why Is Client Retention Important To Your Career?

You know the saying “work smarter, not harder,” well that can be applied here too. While building a model to retain clients and working to retain them can take more time and energy, it just makes more sense.

Retaining clients happens when you become your clients one trusted advisor. Rather than feeling the need to constantly, and maybe frantically, seek out more and more clients (thank you, next), you can focus on servicing the clients you do have.

When you build upon relationships you already have, those relationships deepen, actually leading to true financial balance for your clients, and balance for your practice.

According to author Arthur Middleton Hughes, your retention rate is likely to be higher based on the number of products within a household. A more holistic approach, with more products, tends to have the makings of a client for life.

So, how do you achieve those retention rates with your clients?

When you build a client service model.


Improving Your Client Service Model Improves Client Retention

A client service model is a process you create to provide adequate customer service to your clients. Your service model should create a workflow for you to onboard new clients and proactively engage existing clients.

This proactive approach to customer service establishes the frequency of communication and meetings to set clear expectations for your clients and yourself. Your client service model might include:

  • Recognition on holidays, birthdays, and milestones
  • Educational opportunities
  • Opportunities for webinars and seminars
  • Client appreciation events
  • Newsletters
  • Quarterly meeting invites

Whatever touchpoints your client service model includes, it’s all about putting repeatable processes in place. The planning philosophy in place at Consolidated Planning, makes building repeatable processes second nature to advisors at Consolidated Planning.

These processes help you hold yourself accountable and make all the difference between your intention of doing something and actually doing something. By establishing your client service model, your career will be easier and less stressful, more efficient, and ultimately, help you experience higher levels of client retention.

At the end of the day, a sustainable client service model is all about how you treat your client. And wouldn’t you rather work with someone who makes it clear that you’re a priority to them? 

So would we.



Implementing a consistent client service model takes time. Remember, this is a marathon, not a sprint. But, once you have a model in place that works for you and your clients, you will see the fruits of your labor. These fruits will show up as client referrals.

And building a referral practice is your bread and butter as a financial advisor.

The goal of building a client service model is to build trust and rapport with each and every client you serve. This trust and rapport builds a strong, meaningful relationship that keeps you top of mind with your client. Staying top of mind has two notable benefits:

  • Your client wants to come to you when they are thinking about making any kind of decision that may affect their finances
  • Your client wants to refer you to people they know

Both of which help you continue to build a thriving and meaningful financial advising practice.


Start Focusing On Your Client Retention

At this point, you’re likely taking mental notes of what you’re doing to service your existing clients outside of a yearly meeting. Or maybe you already have some version of a client service model in place.

To build a more consistent, sustainable model, start at the source. Ask your existing clients a few questions:

  • What does good communication look like to you?
  • How do you want to be contacted?
  • What is a good client experience for you?
  • What experience have you had with other advisors in the past?

A good client service model starts with transparency and consistency. For best practices for everything in between, reach out to our recruiters to learn how Consolidated Planning prioritizes clients first.


New call-to-action


2023-158595 Exp. 7/2025

Published:  July 28, 2023