The relationship between key variables and customer loyalty within the independent financial advisor environment

Abstract

Research is required to determine the key variables that have a positive relationship with customer loyalty in the independent financial adviser environment. Knowledge of the factors that could assist in fostering customer loyalty might help independent financial advisers firstly in maintaining their client base, and then secondly, to strategise with them over the long term to behave more financially responsible, achieve their saving goals, and become financially independent. Therefore, the primary aim of this article is to explore the relationship between key variables and customer loyalty within the independent financial adviser environment in Gauteng. The population was defined as all the clients of independent financial advisers in the Gauteng region. A convenience non-probability sampling technique was applied and self-administered questionnaires were distributed to the clients in Gauteng who matched the sampling frame. A total of 123 questionnaires were completed and could be used in the analysis. Descriptive and standard multiple regression analysis as well as the one-way analysis of variance (ANOVA) technique was used to analyse the results. Trust and commitment can be viewed as predictors of customer loyalty within the independent financial adviser environment in Gauteng and must form part of the core of the financial adviser's relationship building strategies. It is therefore important for independent financial advisers to ensure that their clients have confidence in their ability to provide sound financial advice. Clients must be convinced that financial advisers have their best interest at heart and as such, should remain committed to their practices.