Issue link: https://resources.envestnet.com/i/1527487
Taking the Measure of Advice © 2022 Envestnet. All rights reserved. 16 As can be seen in Table A, the delivery of financial wellness correlates with stronger revenue growth. Over the past year, 74% of top-quartile advisors saw revenue grow by more than 10%, compared with just 56% of bottom-quartile advisors. Similarly, the delivery of financial wellness correlates with greater success in growing client assets and expanding share of clients' wallet. Over the past year, 80% of top-quartile advisors saw client assets increase by 10% or more, compared with 63% of bottom-quartile advisors. And 53% of top-quartile advisors expanded their average share of wallet by 10% or more, compared with just 25% of bottom-quartile advisors. The delivery of financial wellness is also associated with higher levels of new business. As shown in Table A, more than three-fourths (78%) of the top-quartile advisors reported that the number of clients they work with grew by 5% or more over the past year; by comparison, just over half (53%) of bottom-quartile advisors reported a similar level of success. One reason for the higher levels of new business is that top-quartile advisors were more likely to receive referrals from clients and attorneys, accountants, and other professionals. The typical top-quartile advisor obtained 25% of their new business from referrals from their top clients and 10% of their new business from professional referrals. In contrast, the typical bottom-quartile advisor obtained 20% of their new business from referrals from top clients and just 2% of their new business from professional referrals. Finally, the delivery of financial wellness is associated with higher levels of client satisfaction and—most importantly—higher levels of advisor satisfaction with their own practice. With respect to client satisfaction, Table A shows that 85% of top-quartile advisors reported their clients are "very satisfied" with the services they receive, compared with 77% of bottom-quartile advisors. The differences are especially striking with respect to advisor satisfaction: 81% of top-quartile advisors say they are "very satisfied" with their career and practice, vs. 61% of bottom-quartile advisors. And 66% of top-quartile advisors stated they were "very satisfied" with the growth of their practice's revenue, compared with just 44% of bottom-quartile advisors.