1. business and industrial

Customer Survey - 2014
Full results & key findings
Summary & Key Findings
This summer we commissioned a survey of our customers to find out
just how well we were doing and to assess where improvements
could be made to our proposition and the service we deliver.
The survey set 11 questions focusing on:
• Our Service Proposition
• Communications
• Our Process
The results published here will help us develop ideas for the future and
guide how we shape our future customer experience. If you were unable
to complete the survey at the time, we would still welcome your views
and these can be sent to us at wm@loricawealth.com.
Key Findings
We found that our customers really value our Investment Proposition and
Process so we will keep doing it in the same way.
98% of respondents said they have, will, or might recommend us to a
friend, so we feel that we are doing a good job. But we can and will do
better…..
The majority of our customers want us to make recommended changes
to their Portfolios without asking them, provided that we tell them what
we’ve done. Therefore we will explore the option of discretionary
management services designed to ultimately benefit customers through
better efficiency and cost saving which we can pass on.
We also recognise that customers would like to explore alternative ways
to pay for our services. Whilst most of our customers like the advised
process, paying fees either “ad hoc” or through a retainer fee for regular
meetings, there is a growing number who would like some form of
automated solution for investment without advice.
So we need to create a straightforward and user friendly way for
customers to make additional or new investments.
The quarterly portfolio updates are very well received and so we will
continue to communicate these to you. We will also continue to improve
the quality of our communications and develop a more visual approach
for those who prefer to view detailed information this way.
Most respondents liked the website but we will develop it to allow
customers to compare our performance against others and make it easy
for people to invest direct.
We already appreciate that there is too much information sent by
post and the survey results reflect this. We need to work hard with
the Regulator and technology partners to deliver less paperwork.
Finally, a big “thank you” to all who replied.
The overall response from you is very positive and encouraging, but the
results also show that we must continue to shape our proposition to
accommodate the changing demands of our customers.
Rhys Francis
CEO
Lorica Wealth Management
Lorica Customer Survey - 2014 Results
Page 1
Question 1 Results - Our Service Proposition
For the 0.5% p.a. management fee we offer a service that, in our opinion, provides a superior experience to our competitors.
Respondents were asked to value each part of the service using a scale between 1 - 5, with 5 being essential.
The results show that more than 90% of survey respondents highly value each part of our Investment Service, ranking these with a score of 3 or more.
We’ve highlighted the results below that customers voted as being Essential or Very-Valuable.
0+076+ +0+079+ +0+090+ +0+075+ +0+094+
76%
Ten risk-rated
model Portfolios
79%
Attitude to risk
assessment
90%
Investment
Committee
75%
Quarterly
Investment
Commentary
94%
On-line live
valuation
Conclusion
Customers really value our investment solution and process so we will keep doing it in the same way.
Lorica Customer Survey - 2014 Results
Page 2
Question 2 Results - Our Service Proposition
Our customers have a variety of needs and different levels of knowledge. We want to ensure that our proposition caters for all. For your future investments, which method of service do you prefer?
80+17+3A
Meeting with my adviser who can review my affairs, help me assess my
needs and attitude to risk before making a recommendation to me.
n
80%
Use electronic decision making and risk assessment tools on-line
n
17%
Directly invest with you
n
3%
An overwhelming 80% of respondents value advice which is not surprising as this is how they became our customers but 1 in 5 of our customers would like
to make more of their own decisions either with guidance or by investing directly.
Conclusion
Whilst most of our customers like the advised process, there is a growing number who would like some form of automated process.
Lorica Customer Survey - 2014 Results
Page 3
Question 3 Results - Our Service Proposition
Our Advisers are on hand to assist you with your tax and financial planning. We have to charge for this each time they do any work for you. We believe that the expertise our highly qualified people possess adds significant value, will save you from other professional fees, and will increase and
protect your family’s wealth. 30+50+155A
How often are you likely to pay to have your financial affairs reviewed by an Adviser?
Never, as we only want to use the Investment Service you provide
n
30%
On an ad-hoc basis
n
n
n
50%
Annually
Half-Yearly
15%
5%
The results show that 50 % of respondents want to pay for advice when they need it, while a further 20% would prefer a regular meeting with an adviser
and a third just want to use our investment service.
Conclusion
It is clear that there are different preferences for how customers wish to pay for advice, with three clear options emerging from the results. Our
future proposition development should reflect this.
Lorica Customer Survey - 2014 Results
Page 4
Question 4 Results - Our Service Proposition
We regularly review our processes to find simpler ways for you to invest. For example using your annual ISA allowance. Which one of these statements applies?
84+6+37A
The present system is absolutely fine
n
84%
I find it difficult to invest as I cannot always contact my Adviser
n
n
n
6%
I am frustrated as I cannot invest directly
I find that the present investment process takes too long
3%
7%
Overall, we are pleased to see that respondents feel very happy with how we enable new investments to be made, but it is worrying for us to see that
some customers (16%) find that the process can still be difficult and frustrating.
Conclusion
We need to continue to create a simple and straightforward customer experience for our customers to make new investments.
It is clear that there are three main categories for how customers wish to pay for advice and our proposition development should reflect this.
Lorica Customer Survey - 2014 Results
Page 5
Question 5 Results - Communications
We are reviewing the way we communicate with you and how best to improve this. This includes how we communicate our quarterly investment
recommendations to you and the reasoning behind them.
We asked respondents to assess three questions.
Overall our Customers like the way we communicate with 93% satisfaction.
0+095+ +5+0+095+ +5+0+088+ +12
Yes
No
Are you satisfied
with the update
communication you
receive?
Yes
No
Would you prefer to
continue to receive
these electronically?
Yes
No
Are the
communications
you receive easy to
understand and simple
to view?
Conclusion
We will continue to communicate our quarterly investment review and recommendations in the same format, improving its delivery, quality and
ease of use wherever we can.
Lorica Customer Survey - 2014 Results
Page 6
Question 6 Results - Communications
How would you prefer us to explain why we recommend certain investment strategies, asset classes and fund choices?
37+63
Detailed written information
n
37%
Visual and multimedia presentation
n
63%
A clear two thirds of respondents would like to have a multimedia presentation of our strategy decisions and views each quarter.
Conclusion
While it is important for many to continue with written detail, we need to adopt and develop a more visual approach to our quarterly communications.
Lorica Customer Survey - 2014 Results
Page 7
Question 7 Results - Communications
Lorica Wealth has over £170m of assets under management. Our Investment Committee has achieved some outstanding performance throughout the
range of 10 model Portfolio’s, though we have been reluctant to shout from the rooftops until we had at least 5 years track record.
How would you like to view the performance we have achieved with your Portfolio? For this question we allowed respondents to pick more than one question option.
As a regular quarterly update
82%
Published regularly on our website
Compared against selected benchmarks
22%
56%
In a format to compare other investments against your Lorica Portfolios
32%
I don’t need performance information from you
3%
The dominant trend here is that respondents like the quarterly investment review update, but would appear to want more awareness of how well we are
doing against our peers and customers other investments.
Conclusion
There is a need to develop the capability for more on-line investment tools that enable performance comparison.
Lorica Customer Survey - 2014 Results
Page 8
Question 8 Results - Communications
We are having a good look at the design of our website and would like to hear about your experience and its ease of use.
Which of the statements do you agree or disagree with?
0+24+76+0+78+22+0+20+80+031+ +69+0+44+56+0+47+53
Agree Disagree
I never visit the
website and do not
intend to
Agree Disagree
The website is well
laid out and easy to
understand
Agree Disagree
The website is too
hard to navigate and I
find it hard to find the
information I require
Agree Disagree
It needs more
functionality so
that I can make
investments directly
into my Portfolio with
appropriate guidance
Agree Disagree Agree Disagree
If the website was
more user friendly I
would use it more
I would like it to provide
a simple mechanism
to allow the transfer
of investments held
elsewhere to my
Portfolio
Conclusion
Most respondents who visit the website said that they liked the layout and current navigation. More than half would use it more if it was friendlier to
use and a good number of customers (47%) would like a simple way to add more investments and transfer assets to their Portfolio.
Lorica Customer Survey - 2014 Results
Page 9
Question 9 Results - Our Process
Each quarter we contact you with an email asking you to read through our recommendations for your Portfolio and reply with your acceptance.
Which of the following do you agree or disagree with?
0+90+10+0+05+ +95+0+017+ +83+0+079+ +21+0+0+23+77
Agree Disagree
The present system
works perfectly for me
Agree Disagree
Quarterly changes are
too frequent
Agree Disagree
Quarterly changes are
not enough
Agree Disagree
I am happy to
authorise Lorica to
automatically make
changes to my
Portfolio, providing
I receive an update
communication
Agree Disagree
I am happy to
allow automatic
discretionary changes
without a quarterly
update
Conclusion
More than 90% of respondents confirmed that they are happy with the current quarterly frequency for our investment review and recommendation. Almost
80% would be happy for us to implement these recommendations on a discretionary basis - without express consent - provided we communicate what will
happen and when. Given this feedback we should explore adding Discretionary Management as a service both to simplify the customer experience and
because any greater efficency and cost saving can be passed onto our customers.
Lorica Customer Survey - 2014 Results
Page 10
Question 10 Results - Our Process
The financial services industry is very guilty of bombarding its customers with too much paperwork, which unfortunately is often necessary
because of the regulations designed to protect you. Please answer the following to help us better streamline our processes to suit you. Respondents could select multiple answers.
I would prefer everything to be sent to me electronically, rather than by
post
I would like as much as possible to be sent at the same time
50%
If there is a way of reducing the burden, I would happily accept it
29%
37%
I’m happy with the way I receive information
46%
Less than half of respondents are happy with the way they receive information, with half prefering to receive electronic paperwork or have this option
available. Reducing the burden and to send documentation all at the same time would appeal to a third.
Conclusion
We need to work hard with the Regulator and technology partners to deliver less paperwork, with more electronic availability and to develop a
better innovative customer experience so that regulatory and legislative needs are met as well as those of our customers.
It clear that there are three main categories for how customers wish to pay for advice and our proposition development should reflect this.
Lorica Customer Survey - 2014 Results
Page 11
Question 11 Results - Our Process
Based on your experience of the Lorica Wealth Portfolio Service, how likely would you be to recommend the Service to a friend?
31+39+281A
I already have
n
31.40%
Very likely
n
n
n
n
39%
I might do
Not likely
Definitely not
28%
0.8%
0.8%
Conclusion
These are fantastic results for us and a great endorsement for our Service. However, we need to pay more attention to looking after those who
have obviously had a poor experience, to find out why and to improve where we can.
Lorica Customer Survey - 2014 Results
Page 12
Lorica Wealth Management is the trading name of
Lorica Advisory Services Limited
4 New Fields Business Park,
Stinsford Road, Poole. BH17 0NF
T +44 (0)845 218 3126
E wm@loricawealth.com | W www.loricawealth.com
Lorica Advisory Services Limited is authorised and regulated by the
Financial Conduct Authority
Registered Addresss: Hardwick House, Prospect Place, Swindon. SN1 3LJ
Registered in England & Wales | Registered no. 04990015