Consultancy and research firm Herbers & Company announced the results of its 2023 Herbers & Company Service Market Growth Study, which surveyed 1,598 investors and 724 advisory firms, highlighting industry trends and gaps between service and demand.
Tax planning assistance was identified as a need by 90% of respondents, and 72% required retirement planning support, while only 73% of advisors offer tax planning and 67% offer comprehensive retirement planning services.
Angie Herbers, Managing Partner of Herbers & Company, said, “Investors, more than ever, are voicing their need for stability and clarity. Advisors should see this as an opportunity — a moment to not only bolster their existing tax and retirement planning services but to innovate and adapt, ensuring they remain trusted partners in their clients’ financial journeys.”
The study’s findings included a disparity in client conversion rates, as the average firm converted 33% of clients, compared to 73% for top organic growth firms. Companies using inorganic growth methods had a 22% conversion rate. Also, only half of investors surveyed indicated interest in investment management services, while 66% of firms provide those services, indicating that firms focused on investment management may need to broaden their range of offerings.
The survey revealed other disconnects, including the definition of “comprehensive” wealth management, with advisors identifying over 250 different combinations of services as comprehensive. The study also revealed a disparity in cryptoasset advice, as 10% of investors surveyed indicated interest in guidance on cryptocurrency, though no surveyed firms provide that service.
Herbers continued, “The insights from this study underscored a clear disparity between what the industry offers and what clients truly want. It’s evident that the emphasis on traditional investment management services is not resonating as strongly with today’s investors. Now, there’s a need to recalibrate and offer services that align more closely with investors. The firms that do so will have a competitive advantage.”
Founded by Herbers over 20 years ago, Herbers & Company consults on practice management and includes a consulting division, an online educational academy and a research division. The firm has provided consultation to over 1,000 companies on expanding revenues, profits and valuations.
James Miller, Contributing Editor and Research Analyst at Wealth Solutions Report, can be reached at ContributingEd@wealthsolutionsreport.com.
