In each of the four 2021 Report Cards, Investment Executive asked financial advisors how likely they would be to recommend their firms to peers on a scale of zero to 10, with 10 being the most likely. Those recommendations were used to determine a firm’s Net Promoter Score (NPS; see Methodology, below).
For 2021, and as published in each of the four results charts, 11 of the 20 firms that had NPS results of 70 or above — considered to be exceptional — appeared in the Brokerage Report Card. The remaining nine firms in the exceptional group were a mix from the dealer, retail-bank and insurance report cards.
Only one firm had a negative NPS: the brokerage BMO Nesbitt Burns Inc. (In the Brokerage Report Card — for which data was collected between Jan. 4 and Feb. 12, and originally released in May — the firm responded by noting that it highly values advisor views.)
The rest of the firms rated fell in between, with scores considered either good (above zero) or excellent (50 or above); more detail on the other data collection dates is in our How We Did It.
Methodology
In 2020, Investment Executive began incorporating the Net Promoter® Score (NPS®; trademark of Bain & Company Inc., Satmetrix Systems Inc. and Fred Reichheld). Respondents to all four previously published Report Cards in 2021 — for which data was collected between Jan. 4 and June 11, and then originally released between May and September; see How We Did It for more detail — were asked how likely they’d be to recommend their firm on a scale of zero to 10. Their numerical answers were used to calculate a firm’s NPS, data that also was published. The calculation involves subtracting the percentage of detractors (those who rate from zero to six) from the percentage of promoters (those who rate either nine or 10) at a firm, to come up with a score between -100 and 100.
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