Investment managers, typically focused on portfolio returns, can learn some key lessons from the service-oriented hospitality industry

In an era marked by economic and geopolitical uncertainty, investors are no longer focused solely on returns — they are seeking reassurance too. The role of the investment manager is shifting accordingly, evolving from delivering financial objectives to more of a trusted guide, with greater emphasis on the relationship. Increasingly, we can learn from industries such as hospitality, where building a trusting relationship is central to the best business models.

The traditional image of an investor is often one-dimensional: analytical, detached and focused solely on returns. Whether they are professionals managing portfolios or high net-worth individuals seeking income from their capital, the assumption is that performance is everything.

But investors, like all of us, are people first, valuing an honest and thoughtful journey. When investment partners take the time to craft a high-quality experience, they build trust, deepen relationships and ultimately deliver better outcomes for both parties.

Those families with experience in hospitality can help shape how we approach investor relationships. Hoteliers understand that great service is about more than operational efficiency, however attractive that is as the business owner.

Guests expect smooth and responsive service, but they also want to feel genuinely welcomed and hosted with integrity. This requires a balance between operational excellence and human connection. For example, front-of-house teams should be trained to offer personalised recommendations on micro location dining, culture and entertainment.

This kind of attentiveness, focused on understanding individual needs and making people feel understood and valued, can be directly applied to investment. Investors, like guests, value being recognised as individuals. When firms anticipate their needs and personalise the experience, they build trust and long-term loyalty.

This kind of attentiveness, focused on understanding individual needs and making people feel understood and valued, can be directly applied to investment

Customer experience is a powerful tool for building long-term loyalty. Research commissioned by Barclays and conducted by the Centre for Economics and Business Research, found that businesses contributing to the ‘experience economy’ add an estimated £134bn ($177bn) to the wider UK economy annually. In the investment world, this translates into opportunities to differentiate through tailored reporting, proactive communication and bespoke strategies that reflect the investor’s individual preferences. Being readily available for calls and meetings may feel inefficient, but that doesn’t mean it is not important.

Experience goes beyond operational touchpoints.  Open book integrity and candour — for better or for worse — fosters trust and comfort, laying the foundation for enduring relationships.

Additional capital

When investors feel understood and valued, they are more likely to commit additional capital and remain engaged over time, even when business plans need to adjust, as they have done on account of being buffeted by the macroeconomic context in which they sit.

In a competitive market, where projected returns may be similar across firms, attention to detail and a personal touch become key differentiators.

We are seeing clear trends among ultra-high net worth individuals. Increasingly, they want to be co-creators in the investment process. This means sharing the rationale behind strategies and maintaining open lines of communication about performance.

Empathy and transparency are no longer optional; they are essential to building confidence and ensuring investors feel their interests are being respected.

Empathy and transparency are no longer optional; they are essential to building confidence and ensuring investors feel their interests are being respected

Purpose is another growing priority. Investors want to understand the values behind their investments. Aligning on shared principles, as well as equity investment alignment, reinforces trust. And while each investor’s values may differ, consistency in ethos is critical. Delivering a personalised experience does not mean compromising on performance. It means recognising that the aligned interests and quality of the relationship itself is a driver of long-term success.

Experience is often overlooked in favour of outcomes, but it is a critical part of the investor journey, and the end need not be the only thing that justifies the means.

Consistently delivered hospitality principles can inform the investment experience and why investment firms must look beyond their own industry for inspiration. By embracing the principles of customer experience and communication, they can build deeper relationships, enhance trust and ultimately improve performance. Those who neglect this, risk losing more than returns; they risk losing relevance.

By: William Laxton, CEO, Mactaggart Family & Partners