Charles Schwab 2006 Annual Report Download - page 20

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T HE C H A R LE S S C H WAB C O RPO R ATI O N 200 6
L ET T E R F RO M T H E C H I E F EXE C U T I VE O F F I C ER
It’s not just about bringing in more assets,
though we are pleased when that’s the
case. We want individual investors to feel
so good about their investing outcomes – and
their entire experience with Schwab – that
they recommend us to their friends and
family. So we adopted a way to measure client
loyalty that rates our performance, compares
us to key competitors, and points us toward
improvements that will make it easier to do
business with us.
Our “client promoter score” is moving in
the right direction, and we’ve taken several
important steps to keep it climbing higher.
For example, Schwab Investor Services has
assigned many clients to a dedicated finan-
cial consultant, either at the local Schwab
branch or through our phone-based Branch
Extension Team. We’re also using our phone
and web services more effectively, providing
clients with complimentary portfolio consulta-
tions and personalized online tools, such as an
enhanced retirement assessment and Schwab
Portfolio Checkup.
When it comes to client loyalty among inde-
pendent investment advisors, the scores for
Schwab Institutional are at the top of the
chart. That’s no surprise, since that business
is built on rock-solid relationships. Schwab
Institutional is the leader in this segment of
the financial services industry, serving more
client assets than our next three competitors
combined.
As we continue to strengthen our relationships
with individual investors and with independent
investment advisors, many loyal clients will
put their personal reputation on the line and
recommend Schwab. We believe that’s one of
the highest compliments we can receive – and
one of the best ways to build our business.
WE’RE REACHING NEW CLIENTS.
During the past year, we worked hard to improve
our relationships with existing clients, but we
also brought in new ones. We added 655,000
new brokerage accounts, up 15 percent from
2005.
Many new clients were responding to our
very successful Talk to Chuck™ message.
Since the campaign was launched nationally
in 2005, monthly new-to-firm net new assets
have increased 29 percent, and more inves-
tors now consider Schwab when shopping for
financial services. But this is far more than an
advertising campaign; it’s a philosophical
approach. We are here to listen and to help
more people do better at investing, regardless
of their age, the extent of their wealth, or their
sophistication as investors.
Today, the typical Schwab brokerage client is
part of the Baby Boomer generation – a very
important segment, with more people turning
50 this year than ever before. But I believe the
best way to help these clients secure their
financial future is to reach out to their entire
family – including children and grandchildren
– to promote financial fitness at every stage of
life. We’re appealing to multiple generations in
a number of ways.
- To help teens learn how to manage money,
Charles Schwab Foundation is working with
Boys & Girls Clubs of America to teach
Money Matters: Make It CountSM.
- To help younger investors build their portfo-
lios, we lowered the minimum investment for
brokerage accounts and developed simple,
goal-oriented financial products, such as
target retirement date funds and 529 college
savings accounts.
- To reach an even wider range of consum-
ers, Charles Schwab Bank® offers checking
accounts, credit cards, mortgages, and home
loans.
Brokerage and banking are a powerful
combination that allows us to take a broader
view of client accounts, looking at both sides
of their balance sheets so we can provide more
complete financial advice and price our
services more competitively. Through our
award-winning website, clients can transfer