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Kim Butler

Partners for Prosperity, Inc.

City:Mt. Enterprise

State: TX

I have 20+ years of handling alternative investments in cash, growth and income for clients nationwide.  I strive to help my clients with all things financial in every way possible over the phone and the web.  I own an alpaca farm which I enjoy working during my downtime.  I also enjoy gardening, writing and reading books.  I also train other advisors on Prosperity Economics.

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Assessing Loyalty in an Asset Management Account

An asset management account can provide numerous enticements to produce loyalty, including online access to accounts and a reward program for account activity.

| BY Kent McDill

When companies provide loyalty programs, it is designed to entice consumers to try their products in the hopes they will develop loyalty to the brand beyond the incentives they get for buying the product.

It doesn’t always work that way, in consumer spending as well as in investment spending.

Bond Brand Loyalty, the former Maritz Loyalty Marketing, released its 2014 Loyalty Report in early June and reports that for some consumers, their loyalty to a product is based solely on the quality of the loyalty program offered by the company. If a retailer has a solid points program for purchases, the consumer tends to stick with that company.

The study interviewed 6,000 people and asked them to rate more than 150 companies in the fields of retail, packaged goods, banking, travel and hospitality, to determine whether their loyalty programs work.

In a similar vein, Spectrem’s Millionaire Corner conducted a study of affluent investors and found that certain enticements are more likely to produce new accounts or enhance existing investor-advisor relationships.

In its report Understanding the High Net Worth Investor, Spectrem Group asked what features are most important in selecting an asset management account, and approximately 85 percent said the amount of the annual fee was a factor, by far the highest percentage of respondents. Online access to accounts was chosen by over 80 percent of investors, and approximately 75 percent of investors said identity theft protection was a key factor.

RELATED: Translating Advisor Satisfaction to Advisor Loyalty

Like consumer products, some asset management accounts offer a reward program for account activity, but only between 40-45 percent of investors consider that a factor, depending on their wealth level. The less money they have to invest, the more likely an investor is to prefer accounts with rewards programs.

Some asset management accounts also offer their own credit cards or debit cards for use, but less than 50 percent of investors consider that a key enticement to sign up.

Only 27 percent of all investors have an asset management account, which is why firms are trying to find the enticements that will make an investor consider signing up. Among the wealthiest investors, 53 percent say they have an asset management account.      

In the Bond Brand Loyalty report, the top drivers of satisfaction in loyalty programs are the quality of rewards, the trustworthiness of the program, the ability to reach levels in a timely manner, the speed with which rewards are processed and customer support.

In terms of types of companies involved with loyalty programs, the top companies in terms of customer satisfaction are Dove (packaged goods), Papa Johns (dining), AMC Stubs (entertainment), Southwest Airlines (payment card), Kohl’s (retail-department), adidas (retail-apparel), JetBlue (travel-air), and Marriott (travel-hospitality).

According to the report, while 63 percent of all consumers say they love the brand more than they love the loyalty program, 29 percent said they would not be loyal to the brand if it were not for the rewards program.

For the companies, the scary news is that 68 percent of millennials say they would not be loyal to a brand that did not have a loyalty program.

On average, the survey respondents were enrolled in 10.9 loyalty programs, but are only active in 7.8. Eighty percent said loyalty programs “are worth the effort of participating” and 71 percent said the programs are part of their relationship with the company.

The problem with some loyalty programs is the constant barrage of reminders to participate sent to emails or smartphones. However, the Bond Brand Loyalty survey shows that 90 percent of respondents want that contact from the programs in which they are enrolled, even though only 46 percent consider the communication to be relevant.

Among the different program rewards, the most popular was discounts (79 percent), followed by cash back (71 percent), rebates (70 percent), and earned status (62 percent). Only 49 percent valued personalized shopping experience as a preferred reward.

In terms of how reward programs affect shopping decisions, 22 percent said they had made a purchase of something they did not need in order to maintain eligibility for points or benefits, and 35 percent said they modify the brands they buy in order to maximize their benefits in the program.


About the Author

Kent McDill

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.