Why People Buy From Financial Advisers

Here’s a photo I took of a tv screen earlier in the year.

The package interested me greatly. It looked at the findings of a German university explaining at a local Singapore conference why people do certain things.

This particular snippet assessed how decisions were made on appointing a financial adviser. My recollection is that the sample size was a healthy 550.

A couple of intriguing facts emerge.

Cost

I am astounded that price came in as the second consideration. I find this difficult to accept. In just about every such survey I’ve ever seen like this, price is normally rock-bottom. I wonder if it is higher here because money is what the product is and so may unusually influence rankings?

Risk

There are actually two risk-related factors, first and fifth. Combined this clearly makes ‘risk’ – it’s mitigation and management – the number one item. This is something that all solution sellers would do well to bear in mind. How do your prospects pick up your stance on risk at the moment?