The Untapped Metric: Measuring “Share of Heart”

Amar Pandit , CFA , CFP

Amar Pandit

A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.

In the realm of the wealth business, success has traditionally been measured in numbers: assets under management, revenue growth, and client acquisition rates. Yet, there’s a pivotal metric that transcends the cold hard data – the “Share of Heart.” This elusive measure captures the depth of the emotional and relational bonds between a firm and its clients. Needless to say, it’s increasingly becoming a linchpin for sustainable growth and loyalty in a competitive landscape. Regrettably, most firms overlook this metric, focusing narrowly on the quantifiable while undervaluing the qualitative relationships that are the true drivers of long-term success.

Understanding Share of Heart

Share of Heart is not just about satisfaction; it’s about the emotional engagement and trust clients feel towards their wealth firm. It’s what turns regular clients into staunch advocates, willing to entrust a larger portion of /all their assets and recommend the firm to others. But how do you measure something as intangible as the emotional investment of your clients?

Measuring the Immeasurable

Client Satisfaction Surveys: Regularly engaging with clients through surveys can provide insights into their satisfaction levels, unearthing not just their contentment with the financial returns, but how they feel about the service provided, the communication, and the personal attention they receive.

Net Promoter Score (NPS): This tool asks one simple question – “How likely are you to recommend our services to a friend or colleague?” The answers, on a scale of 0-10, categorize clients into Promoters, Passives, and Detractors, offering a clear view of where the firm stands in terms of client loyalty.

Engagement Metrics: Track the frequency and quality of interactions with clients. High engagement levels, through regular meetings, calls, and personalized check-ins, can be indicative of a strong emotional bond.

Client Retention Rates: A direct reflection of satisfaction, high retention rates often signal a deep Share of Heart. Clients stay where they feel valued and understood. However, this metric is often misunderstood because the retention levels of most firms are high (even if all they do is simply switch their lights on and do nothing exceptional or special for their clients).

Referral Rates: When clients become advocates, sharing their positive experiences, and bringing in new business, it’s a powerful testament to a firm’s Share of Heart.

Why It Matters

In today’s digital age, where switching barriers are lower, and competition is just a click away, Share of Heart becomes your firm’s stronghold. It transforms client relationships from transactional encounters into meaningful partnerships. Firms with a high Share of Heart enjoy deeper loyalty, which acts as a buffer against market fluctuations and competitive pressures.

Cultivating a Deeper Share of Heart

Achieving a high Share of Heart requires more than just financial expertise; it demands a commitment to genuine relationship-building. It means prioritizing client needs, offering personalized solutions, and providing consistent value. Every interaction should reinforce the client’s decision to choose your firm, reminding them that they are valued and understood.

The Bottom Line

While assets under management and other financial metrics will always be important, the real competitive edge in this business lies in winning the Share of Heart. It’s a powerful differentiator in a crowded market, driving loyalty, referrals, and ultimately, business growth. As we move forward, let’s shift our focus from the balance sheet to the emotional ledger, recognizing that the strongest portfolios are built on the foundation of meaningful, trust-based client relationships. In the quest for lasting success, measuring, and nurturing the Share of Heart isn’t just beneficial; it’s essential.

Implementing strategies to increase the “Share of Heart” within a wealth firm involves a combination of personalized service, deep engagement, and genuine relationship-building efforts. Here are examples of how your firm can operationalize this concept:

1. Personalized Goal Planning

Example: A wealth firm introduces a service where each client is paired with a dedicated financial professional who conducts an in-depth lifestyle and financial goals assessment. This person then creates a bespoke plan tailored not just to the client’s financial status but their life goals, aspirations, and values. Regular, personalized updates and adjustments are made to this plan, ensuring it evolves with the client’s changing needs.

2. Client Appreciation Programs

Example: The firm organizes exclusive events for clients, such as educational seminars, family wealth workshops, and social gatherings. They also celebrate client milestones, like anniversaries or major life events, with personalized notes or thoughtful gifts. This approach makes clients feel valued beyond the financial transactions.

3. Transparent Communication

Example: Implementing a policy of proactive communication where clients are regularly informed about financial life transitions, market changes, potential impacts on their portfolios, and actions being taken on their behalf. This includes the use of plain language in all communications and ensuring clients have a clear understanding of their investment strategies and any associated costs.

4. Client Feedback Loop

Example: Establishing a continuous feedback loop where clients are encouraged to share their experiences and suggestions through various channels (surveys, one-on-one meetings, digital platforms). The firm then actively uses this feedback to make improvements, demonstrating to clients that their opinions are valued and acted upon.

5. Community Building

Example: Creating a client community through online forums, social media groups, or regular meetups where clients can share experiences, guide, and support each other. The firm facilitates these communities, providing a space for clients to connect over shared interests, enhancing the sense of belonging and loyalty.

6. Comprehensive Education Offerings

Example: Offering a suite of educational resources tailored to different life stages and financial literacy levels, including webinars, podcasts, articles, and interactive tools. These resources empower clients to make informed decisions and reinforce the firm’s role as a trusted financial guide.

7. Exceptional Onboarding Experience

Example: Designing an onboarding process that is not only efficient but also welcoming and informative.

8. Leveraging Technology for Personalization

Example: Utilizing CRM, Data Analytics, and AI technology to analyze client data, enabling financial professionals to anticipate client needs and personalize their interactions. This could include personalized investment insights, birthday and anniversary greetings, and customized content relevant to the client’s interests and life stage.

Implementing these strategies requires a firm commitment from all levels of the organization. By focusing on the Share of Heart, wealth firms can cultivate deeper, more loyal client relationships that stand the test of time and market fluctuations.

In the intricate dance of financial stewardship, numbers will falter where human connections flourish. It is this ‘Share of Heart‘ that fortifies the foundations of trust and loyalty that no market downturn can erode, nor can any competitor easily take away. Firms that excel in cultivating genuine relationships recognize that every financial life plan they craft is woven with the threads of their clients’ life stories, hopes, and dreams. It is not the financial statements that reflect a firm’s true worth but the breadth and depth of its relationships. In the relentless pursuit of quantitative growth, let us not lose sight of the qualitative touches—the empathetic ear, the understanding nod, the timely word of wisdom—that truly anchor a client to their financial professional.

As the financial landscape becomes ever more commoditized, the ‘Share of Heart’ emerges as the ultimate bastion of differentiation. If you implement this, your firm’s success will be deeply anchored in the enduring trust and shared values that define the human experience. Embracing this philosophy, we move beyond the transaction to the transformation, not only managing money but enriching lives, thus ensuring a legacy that helps people live happier financial lives.

What’s your Share of Heart with your clients?

Have you calculated it?

If not, it’s time to get started.

What are you waiting for?