Do the words trust and loyalty have any meaning today? Or have we become so cynical that we don’t even consider such concepts anymore?

The flood of complex schemes and fraudulent practices have destroyed the image and reputation of the financial services industry -- and demolished privileged livelihoods of those who used and lost vast fortunes of other people’s money.

So how are you doing? The litmus test: are clients staying or leaving? You’ll know how you measure up. Customers with no sense of loyalty will drop you. Customers who trust you will stick around and even help grow your business through referrals. That’s loyalty in action. Trust and loyalty are two sides of the same coin – the kind you have to work to earn.

We want to trust the people we put in charge of things (like our portfolios). But we need a reason to do that. Trust is not something we bestow in an instant or on a whim. It’s usually earned over time – in hours of candid conversation, considering important issues together. When we see consistency in behavior and attitude, we come to trust one another.

Trust motivates loyalty. When we trust someone, we’re naturally inspired to stand by them through good times and bad, sourced by mutually satisfying relationships and outcomes. Loyalty involves respect, care, and commitment.

Is the trust/loyalty coin at work in your practice? I can report from what I see facilitating financial services Customer Advisory Boards that sponsoring advisors have not lost any clients. In fact, I observe the opposite – a strengthening sense of loyalty to sponsors from CAB members.

They understand and appreciate that they have a voice and direct communication with their advisor, on a regular basis. The CAB provides the venue for a listening ear – and clients know through experience that what they say is valued. This is loyalty in action – the kind that drives client retention.

Our friends at Harris Interactive will present the 16th Annual Harris Interactive Loyalty Conference on May 6 – 8 at the Silverado Resort in Napa, CA.

This is not an extravagant gathering. It’s small (about 75 participants) and low-key, but provocative and informative, with case study presentations, workshops, and illuminating panels with loyalty thought leaders. Keynote speaker, acclaimed author and loyalty expert Jill Griffin, will inspire us to sharpen our vision about the role that loyalty plays in improving client experience and increasing ROI.

Because I’m facilitating two panels, I can offer a significant discount to my clients and readers of this blog. You can attend for just $595 – a $600 savings off the full conference rate. Register here for this special value:

http://www.harrisinteractive.com/loyaltyseminar/LOY5609VIP.asp

I look forward to seeing you there.

Have questions about establishing a CAB? My company, CABHQ, offers a free 30-minute phone consultation with me. Call me at 585-264-2000 to discuss the best CAB invitation “template” for you and your clients.