Revealed preferences
Unlock richer client insights and better advice
Thanks for listening to our Ensombl podcast. Here you'll find more information on each episode.
If you'd like to explore using these methods in your business, please get in touch.
Episode 1: Revealed Preferences
Financial advice stands on the brink of an era shift in client diagnostics, much as medicine went through in the early 20th century with the Xray. This new generation of diagnostics enables advisors to see what is going on beneath the surface with clients. Revealed preferences is where it starts.
Episode 2: Not so odd couples
60% of couples under 60 have a meaningful difference in risk preference. What happens if that goes unmentioned? One partner won't feel seen, heard or confident in the investment plan. When that kind of gap exists, it creates AUM flight risk. For both reasons, it’s critical for advisers to unearth what often goes unsaid. Do better by couples with revealed preferences.
Episode 3: ESG is personal
Recent research shows 60% of Australian investors place high importance on sustainable investing (SI). But only 13% are highly confident their current portfolio reflects their values.
The SI world is a blizzard of terms, concepts, and products. It’s hard for investors to see what’s possible and know what their SI preferences are. For advisers, trying to tease out those preferences can sometimes feel like walking on eggshells/politically charged topics. Become your clients' SI wayfinder with revealed preferences.
Episode 4: Re-profiling pays off
Risk profiling is often one and done – since it’s treated as a compliance 'tick the box' formality. But recent research suggests it’s worth a revisit.
Clients who are re-profiled annually are more likely to recommend their adviser — their Net Promoter Score (NPS) averages over 10 points higher than those who are risk profiled less frequently. And they are much more likely to intend to grow FUM in the ensuing 12 months – 69% vs. 42%. Re-profile with ease, with revealed preferences.
Get richer client insights, give better advice.
More on Episode 1: Revealed Preferences
Stated vs. revealed preferences
The math behind revealed preferences
Balancing goals, preferences and constraints
More on Episode 2: Not So Odd Couples
There's a huge opportunity for advisers to re-think risk profiling for couples. When done right it can be a 'quick win' starting point for delivering a more equitable advice experience.
More on Episode 3: ESG is personal
A recent study of ESG preferences in Australia shows investors are increasingly attuned to sustainable investing.
More on Episode 4: Changing Preferences
What is decision consistency?
What is risk tolerance?
What is loss aversion?