A recent survey of investors offers insight on how advisors can engage their clients and turn that higher level of commitment into more client referrals.

The results of the 2010 “Economics of Loyalty” survey were released Wednesday by Advisor Impact, Charles Schwab Advisor Services, and researchers at Texas Tech University.

The surveys, conducted every two years, are designed to help advisors understand the drivers of client engagement and profitability.

The data for the 2010 survey were gathered from 1,034 investors, all of whom work with a financial advisor, contributed to/made the financial decisions in the household and met specific asset criteria.

“The 2010 study, an extension of the 2008 survey, sought to do three things,” said Julie Littlechild, president and founder of Toronto-based Advisor Impact, in a release. “First, we wanted to assess the over time change in the client/advisor relationship. Second, we wanted to refine understanding of what drives client engagement and, lastly, we wanted to refine our understanding about how and why clients offer referrals to their advisors.”

Some of the key findings from the 2010 study include:

> Despite a difficult two-year period for investors, trust in their financial professional remained high, with 92% of respondents giving their advisor a four or five out of five rating.

> Seventy-seven per cent of those surveyed were satisfied and loyal, with 93% saying they are either somewhat or extremely likely to continue to work with their financial professional.

> Only 29% of respondents said they had provided their advisor a referral in the past 12 months.

“The good news is that the study found 58% of ‘engaged’ clients referred clients because they wanted to ‘re-pay’ their advisor for a great experience. In other words, engaged clients want to help their advisors continue to be successful,” Littlechild said.

“This study underscores that there is a direct economic correlation between having ‘engaged’ clients and having a thriving practice,” said Nancy Allen, director, business consulting services with San Francisco-based Schwab Advisor Services.

“These ‘engaged’ clients are a great source of referrals for advisors, they just need to know how to close the gap by working with the right clients, having the right conversations and asking the right questions. The key is to turn a sense of willingness and motivation into action,” Allen said. “We are proud to sponsor this important work.”

“This year’s study gets us closer to cracking the code to client satisfaction, client loyalty and client referrals,” said Deena Katz, associate professor of personal financial planning at Texas Tech University, in Lubbock, whose research team provided assistance during the survey process.

The full report, is available on the Advisor Impact website at www.advisorimpact.com.