reciprocity
‘If someone does us a good turn, we feel obliged to repay their kindness’
Clients may feel a sense of loyalty to providers they’ve saved with for many years, particularly if they’ve been treated well – or if their money has grown significantly (even though the provider may have had no influence on their performance).
action
Relationships with providers during the accumulation phase are largely transactional – money is invested and annual statements are often the only regular communication, so this isn’t likely to be a common issue.
If it does happen:
- Give the client time and space to get used to the idea.
- Reinforce the reasons for change.
- Emphasise the quality/strength of the new organisation.
- If possible, draw attention to how popular the new company is with other people (this is a powerful bias called ‘herding’).