Advisor Advantage The Ultimate Authority on Financial Advisors

Transcription

1 Deliverables Presentation of findings Analytic with Executive Summary Complete dataset (SAS/SPSS) Standard segmentations Standard Tabulations Ad hoc Custom Analysis (optional) Custom segmentations (optional) Segmentations appended to lists of Financial Advisors (optional) Overview Financial Advisors play a crucial role in helping investors to learn about, obtain, and manage the financial products they need to meet their financial goals. To accomplish this, advisors play different roles, use a variety of resources, and apply different styles and approaches. Financial product manufacturers and service providers depend on advisors to select and present their offerings to investors. Much of the information about advisors is narrowly defined by product or channel and focused only on production. Inevitably, the understanding of advisors their needs, business models, goals, marketing styles, life stages, etc. is oversimplified and ineffective.. The role advisors fill between financial institutions and investors is changing in reaction to current economic situation, so insights into how to more effectively group and help advisors has become an essential competitive advantage. Goal The goal of Advisor Advantage is to provide a comprehensive understanding of all facets of financial advisors to more effectively segment and support specific advisors. By collecting, and analyzing an accurate, projectable, comprehensive dataset of all advisor attributes, including: demographics, backgrounds, business models, marketing approaches, client characteristics, investment styles, product usage, types of practices, sources of information, and attitudes towards clients, investing, advice, institutions, and compliance, etc. it will be possible to answer questions such as: Who are advisors? How do they differ? How do they do business? How are they changing? What makes them successful? How can they improve? What are their goals and motivations? What are their behaviors and attitudes? A single, comprehensive source containing all advisors attributes can provide insights that will be invaluable to recruiting, retention, national sales, product sales, strategic planning, and market research. Use Advisor Advantage to align your programs to the specific advisors who will respond and you will achieve better results for less effort and expense, and you will know exactly why you are successful.

2 What qualities make an advisor successful? How do advisors feel about their parent company? How does the method of compensation shape an advisor s book? What types of incentives to advisors like? How do we identify advisors at risk of leaving the firm? What is the best method of retaining a valuable advisor? Stakeholder Issues Retaining the best advisors Finding and recruiting existing advisors Finding and recruiting new advisors Benefits to Recruiting and Retention Using data and analysis from Advisor Advantage provides a competitive edge to Recruiting and Retention groups, allowing them to identify the best way to retain advisors and uncover advisors who are good targets for recruitment.. By aligning your programs to advisor data you will achieve better results for less effort and expense.

3 Sample Recruiting/Retention Plan with AA Inputs GOAL: Redesign the compensation plan to reward advisors who deepen client relationships. Research and Analysis Comprehensive Plan What is the business focus of our advisors? AA Stan d ard Busine ss Focus AA Business Focus Comprehensive financial planner Securities trader Investment manager Financial analyst Tax strategist Retirement planning Small business services Action: Apply business focus segmentation to identify advisors who are comprehensive financial planners and adjust compensation package to incent comprehensive financial planning Implementation Evaluation What is the advisory style of our advisors? AA Standard Advisory Style Re p ort Collaborative Delagative Sounding board Prescriptive Authoritative Action: Apply advisory style segmentation to identify advisors who are collaborative in their financial planning approach and adjust compensation plan to incent the collaborative approach. What motivates advisors? AA Motivators Action: Create a compensation plan that maximizes defined motivations. How does the method of compensation shape advisors books? AA Custom Showing Com pensation Types Commissioned Fee-based Hourly Salary Owner vs. product compensation Broad spectrum Diversified Limited Action: Update compensation plan to reflect product affinity of fee-based advisors.

4 How can we make our advisors more effective in opening new accounts? What motivates our advisors? What qualities make an advisor successful? How do advisors build relationships with their clients? How do advisors obtain and maintain clients? How do I best introduce a new product to our sales force? What types of incentives do advisors like? How do we identify advisors at risk of leaving the firm? What is the best method of retaining a valuable advisor? Stakeholder Issues Increasing revenue/profitability Improving wholesaler efficiency Maximizing sales through existing advisor relationships Identifying and capturing new advisor relationships Targeting product sales Benefits to Using data and analysis from Advisor Advantage provides a competitive edge to, allowing them to uncover how to make a more profitable sales force through making wholesalers more efficient, saturating sales through existing relationships, and targeting new advisors. By aligning your programs to advisor data you will achieve better results for less effort and expense.

5 Sample Sales Plan with AA Inputs GOAL: Each advisor expands their book by 5 new relationships resulting in at least 10 new accounts and $1mil in inflows Research and Analysis Comprehensive Plan Implementation How do our advisors obtain new relationships? AA M ark e ting Style Re p ort Referrals Networking Solicitation Seminars Professional Groups/Associations Action: Provide marketing materials, training, and branch support to empower brokers to obtain new relationships. What triggers investors to begin a relationship with an advisor? AA Ge n e ral Presentation AA Relationship Trig g e r Re port Action: Train advisors to market to trigger points. Evaluation What is the best driver to motivate advisors to reach their goals? AA Motivator Action: Ensure compensation plan contains motivators.

6 Should we expand our product offerings? What motivates financial advisors? What kind of training and education makes advisors more productive? How diverse are advisors clients, products and services? How do advisors build relationships with their clients? How do advisors obtain and maintain clients? How do regulations and compliance affect what advisors sell? How do we best introduce a new product to the sales force? Stakeholder Issues Increasing revenue/profitability for a product line Improving wholesaler efficiency Identifying advisors who sell certain products. Providing advisors with the right tools and training to match the product with the consumer Targeting product sales Benefits to Using data and analysis from Advisor Advantage provides a competitive edge to, allowing them to uncover how to make a more profitable sales force through making wholesalers more efficient, expanding the advisor toolbelt, and targeting product sales to specific advisors. By aligning your programs to advisor data you will achieve better results for less effort and expense.

7 Sample Sales Plan with AA Inputs GOAL: Increase sales in fixed income funds by 5% Research and Analysis What is the trend for fixed income products? AA Ge n e ral Presentation Action: Decide if fixed income products is the best use of marketing dollars. Comprehensive Plan Implementation Evaluation How can I maximize fixed income product sales? AA In ve s tm e n t Style and Conservative Value Aggressive AA Product Composition and Segmentation Broad Spectrum Diversified Limited o Banking focus o Securities focus o Packaged products Action: Apply segmentation to advisors and target advisors with conservative investment styles that sell packaged products. What motivates advisors? AA Motivators Action: Create a compensation plan that maximizes defined motivations

8 How can we increase our revenue? Should we expand our product offerings? Should we invest in proprietary desktop systems? How is the private investor/financial advisor relationship changing? What additional services should advisors offer? How does the method of compensation shape an advisor s book? Stakeholder Issues Increasing revenue/profitability Recruiting and retaining the best talent Understanding advisor behaviors and attitudes Providing advisors with the right tools Gaining insight into sales channels Getting ahead of the curve on industry trends Benefits to Using data and analysis from Advisor Advantage provides a competitive edge to strategic planners, allowing them to uncover how to make a more profitable sales force through making advisors more efficient, designing appropriate compensation plans, preventing the outflow of advisors to independent channels, expanding the advisor toolbelt, and monitor industry trends. By aligning your programs to advisor data you will achieve better results for less effort and expense. Targeting product sales

9 Sample Strategic Plan with AA Inputs GOAL: Increase Revenue by 5% Research and Analysis Comprehensive Plan Implementation How do we retain advisors who have existing books of $x+? AA Ge n e ral Presentation AA Motivators Money Helping people Enjoying finance Other incentives (i.e. trips/gifts/ deferred comp). Knowledge/ education What do my advisors look like? AA Cu s tom Action: Create a work environment and compensation plan that maximizes defined motivations. Action: Apply segmentation to entire roster of all advisors and design a targeted recruiting plan. Evaluation Where do we recruit successful advisors who have the specific experience and profiles we need? AA Ge n e ral Pre se ntation AA Job Histories Action: Recruit from targeted industries. How do I identify early adopters for a new product? AA Cu s tom Action: Apply segmentation to firm s advisors to identify early adopters of a specific product. What are the current trends in client service relationships? AA Ge n e ral Presentation Action: Evaluate trends in building and maintaining client relationships and create an environment and compensation plan that rewards relationship building.

10 How is the private investor/financial advisor relationship changing? How diverse are advisors clients, products and services? How do advisors build relationships with their clients? How do an advisor s service levels vary among his or her clients? What additional services do advisors offer? How do our advisors spend their work week? What do advisors do in their leisure time? AStakeholder Issues Profiling advisor behaviors and attitudes Sizing the market Generating leads Gaining insight into sales channels Getting ahead of the curve on industry trends Targeting product sales Identifying training opportunities Benefits to Using data and analysis from Advisor Advantage provides a competitive edge to market researchers, allowing them insight into advisor behaviors, attitudes, and motivations, making advisors more efficient, expanding the advisor toolbelt, and monitoring industry trends. By aligning your programs to advisor data you will achieve better results for less effort and expense.

11 Sample Research Plan with AA Inputs GOAL: Study the annuities industry and identify market trends and advisor trends. Research and Analysis What are the characteristics of advisors that sell annuities? AA An n u itie s Action: Size the advisor market and project growth. Comprehensive Plan Implementation Evaluation What are the attributes of advisors who do not sell annuities? AA An n u itie s AA An n u itie s Action: Size the non-producing advisors and their potential for selling annuities. Apply the segmentation to current advisors. What are the key indicators for advisors who don't sell annuities today but would be open to selling annuities? AA Cu s tom Action: Profile each group identifying key characteristics for differentiation including demographics, types of clients and selling styles.

12 How is the private investor/financial advisor relationship changing? How do advisors feel about their parent company? What kind of training and education makes advisors more productive? How diverse are advisors' clients, products and services? How do advisors build relationships with their clients? How do an advisor s service levels vary among their clients? What additional services do advisors offer? How does the method of compensation shape an advisor's book? How do advisors spend their work week? What do advisors do in their leisure time? How do regulations and compliance affect what advisors sell? Stakeholder Issues Profiling advisor behaviors and attitudes Shifting to a broader advisor channel model Providing advisors with a voice Getting ahead of the curve on industry trends Capitalizing on advisor lifestage Aligning with advisor business models Benefits to Using data and analysis from Advisor Advantage provides a competitive edge to market researchers, allowing them insight into advisor behaviors, attitudes, and motivations, making advisors more efficient, expanding the advisor toolbelt, and monitoring industry trends. By aligning your programs to advisor data you will achieve better results for less effort and expense. Identifying training opportunities

13 Sample Research Plan with AA Inputs GOAL: Differentiate advisors who have sincere objections to regulatory issues from those who just have a "knee-jerk" dislike of them. Research and Analysis Which advisors have a sincere objection to regulatory and compliance issues? AA Compliance Action: Determine the size and characteristics of these advisors. Comprehensive Plan Implementation Evaluation What are the attitudes and behaviors in common with these advisors? AA Compliance AA Compliance Action: Determine the attitudes and behaviors of these advisors. Apply segmentation to advisors and create a focus group guide to test out different campaign themes and ideas for marketing and lobbying.