RIIA VLC Webinar: Four Strategies to Win the Hearts and ... · RIIA VLC Webinar: Four Strategies to...
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RIIA VLC Webinar: Four Strategies to Win the Hearts and Minds of Your Advisor Channel — and Grow Share
Presented by David Ehrenthal, Investments & Retirement Practice Leader
EMI Strategic Marketing
With special guest Dana Anspach, CFP, RMA
November 20, 2013
Page 3 May 22, 2013 www.emiboston.com
Poll:
What is your biggest barrier to growing advisor channel share?
1. Awareness of my brand and products is too low
2. My value proposition is not resonating with target advisors
3. Needs of my advisor channels are changing; it’s hard to adapt
4. Our sellers are not consultative
5. We don’t know which advisor segments to target
Page 4 May 22, 2013 www.emiboston.com
Key Foundations for Formulating Strategy
Product Providers Product Providers
Growing dependence on
3rd party channels
Page 5 May 22, 2013 www.emiboston.com
Key Foundations for Formulating Strategy
Advisors
Product Providers
Advisors
Gradual shift in business model,
required competencies, and
channel asset share
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Households/Assets
Key Foundations for Formulating Strategy
Advisors
Product Providers
Households/Assets
Boomers streaming into retirement,
concerned about longevity risk
Dramatic growth in retirement assets
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Advisors
Product Providers Households/Assets
Economy
Key Foundations for Formulating Strategy
Economy
Low interest rates,
sub-potential economic growth,
persistent global economic
imbalances
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Technology
Advisors
Product Providers Households/Assets
Key Foundations for Formulating Strategy
Economy
Technology
Great advances in web-delivered
DIY financial planning, practice
management tools, mobility
Page 9 May 22, 2013 www.emiboston.com
Poll:
What is your biggest barrier to growing advisor channel share?
1. Awareness of my brand and products is too low
2. My value proposition is not resonating with target advisors
3. Needs of my advisor channels are changing; it’s hard to adapt
4. Our sellers are not consultative
5. We don’t know which advisor segments to target
Page 10 May 22, 2013 www.emiboston.com
Increasing dependence on 3rd party channels
Source: 2003 Mutual Fund Book, Investment Company Institute, 2012 Investment Company Fact Book; Perspective (7/2003);
ICI Research Report Profile of Mutual Fund Shareholders; ICI Research Perspective (2/2013); Beacon Research
2002
2011
63% 68%
Variable Annuities
74%
86%
Fixed Annuities
83% 87%
Mutual Funds
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Asset shares shifting between retail advisor channels
Wirehouse
Broker Dealer*
Dually Registered &
Independent RIAs
Source: Registered Representative, Cerulli Associates, Access Data & Strategic Insight
49%
34%
17%
2007
34%
41%
25%
2014P 2010
43%
38%
19%
2012
39%
39%
22%
Asset Shift Alert:
Q1 2013 RIA (9%) and IBD (6.5%) mutual fund asset growth outpaced wirehouse (6.0%)
* Includes independent, regional, bank, insurance
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69%
Households net worth highly skewed toward 55+
25%
50%
75%
100%
<35
4%
35 – 44
9%
45 – 54
18%
55 – 64
26%
65 – 74
29%
75+
14%
Source: Federal Reserve Bulletin (6/2012)
Age of Head of Household
Net
Wo
rth
(%
of
Tota
l)
0%
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Households are saving for retirement and emergencies
Source: Federal Reserve Board, Survey of Consumer Finances; 2012 Household Financial Planning Survey,
Consumer Federation of America (7/2012)
97% of households
with $100k income
are saving for
future retirement
“The primary reason why I save”
11%
33%
30%
1%
Other
Investments
Education
Purchases
Liquidity
Retirement
15%
8%
18%
34%
13%
8%
8%
10%
1989
2010
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Households are allocating more assets to retirement goals
1983 1998 2010
Transaction Accounts 15% 11% 13%
CD 16% 4% 4%
Bonds 39% 4% 5%
Stocks 6% 23% 14%
Mutual Funds NA 12% 15%
Retirement Accounts 6% 28% 38%
Cash Value – Life Insurance NA 6% 2%
Other 18% 11% 10%
Source: Survey of Financial Characteristics of Consumers, Federal Reserve Bulletin (3/1984); Survey of Consumer Finances,
1983, Federal Reserve Bulletin (9/1984); Federal Reserve Bulletin, Recent Changes in US Family Finances (2006)
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Financial advisor evolution mirroring the household’s
Transactional Household
For 4 in 10 advisors, retirement planning constitutes half or more of their business activities
(LIMRA’s “Advisor Perspectives on Retirement Planning”, 2012)
Primary
Persona
Value
Prop
Business
Model
1990 1980 2000 2010 Future
Stock
Broker
• Stock Picker
• Muni Sales
• Commissions
Investment
Advisor
• Manager Picker
• Commissions
• AUM fee
Financial
Planner
• Asset Allocation
• Budgeting
• Commissions
• AUM fee
• Hourly Fees
Lifetime/Retirement
Income Manager
• Accumulation
• Transition
• Decumulation
Professional
Service Fees?
Page 16 May 22, 2013 www.emiboston.com
GDP, 10-Year T-Note, 1955 – 2012
Low interest rates, slow growth, limited visibility
Source: Bureau of Labor Statistics; Team analysis
0%
2%
4%
6%
8%
10%
12%
14%
1955 1960 1965 1970 1975 1980 1985 1990 2010 2012
GDP Growth - 5YMA
10-Year Treasury
1995 2005 2000
Page 17 May 22, 2013 www.emiboston.com
Technology enabling remote and more efficient delivery
Wealthfront Jemstep
Page 18 May 22, 2013 www.emiboston.com
Key Foundations for Formulating Strategy
Growth increasingly dependent on 3rd party advisor channels
Distribution opportunities shifting toward independent and dually
registered RIAs
Financial assets increasingly held by transition and retiree
households, many of whom are struggling with cash flow
Challenging economic environment in the foreseeable future
Technology disrupting conventional models
Page 19 May 22, 2013 www.emiboston.com
The Product Provider’s Riddle
650+ Mutual Funds sponsors
40+Annuity providers
37+ETF sponsors
Breaking Through Is a Challenge Because…
Advisors manage an average of 14 product provider relationships
and receive 1200+ “touches” per year
81% work with 4 mutual fund providers or less
87% work with 2 ETF providers or less
1 in 3 are likely to reduce number of product provider relationships
How do you grow advisor mind and market share
in the context of massive change and a very crowded market?
Page 20 May 22, 2013 www.emiboston.com
Solving the Riddle: 4 Strategies for Growing Share
Be the best at:
Wholesaler –
Advisor Interaction
1) Knowing & understanding each advisor’s practice
2) Making relationships more personal & effective
3) Driving sustained advisor engagement
4) Supporting the advisor-client relationship
Direct-to-Advisor
Relationship Marketing
Corporate
Brand Advertising
Page 21 May 22, 2013 www.emiboston.com
Poll:
If your advisor channel only says one thing about you, what should it be?
1. Sends me great research and commentary
2. Is the best at supporting my client relationships
3. Shares great ideas I can use with my clients
4. Spends time to get to know me and my practice
5. Offers great products
Page 22 May 22, 2013 www.emiboston.com
What Dana Values Most
Consultative approach, not trying to sell me something
Product expertise and the ability to map products
to my practice/the needs of my clients
A value proposition that includes
Saving me time and making my practice more efficient
Adding value to my client relationships
Something that really distinguishes them, for example:
Great research
Insightful, practical commentary
Best product in the market
Page 23 May 22, 2013 www.emiboston.com
What a 2007 Survey Says
What do advisors value most in a wholesaler?
1. Takes a solution-oriented approach to me and my clients
rather than pushing product
2. Understands how I do business
3. Offers ideas based on what’s working for other advisors
4. Offers ideas on how to market business more effectively
5. Offers ideas on how to run practice more efficiently and productively
Note: Product was listed 6th
Source: Horsemouth/FRC Wholesaler Effectiveness Survey (2/2007)
Page 24 May 22, 2013 www.emiboston.com
Poll:
If your advisor channel only says one thing about you, it should be…
1. Sends me great research and commentary
2. Is the best at supporting my client relationships
and helping me find new clients
3. Shares great ideas I can use with my clients
4. Spends time to get to know me and my practice
5. Offers great products
Page 25 May 22, 2013 www.emiboston.com
Use my product, please
Be the best at knowing & understanding your advisors’ practice
Greet Present Respond Convince Depart
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Old school…
Page 26 May 22, 2013 www.emiboston.com
Be the best at knowing & understanding your advisors’ practice
Listen Collect Synthesize Connect Solve
• About the
advisor
• About the
practice
• Tablet
• Desktop
• Attitude
• Preferences
• Priorities
• Map to:
- You
- Your brand
- Your products
• Demonstrate
you listened
• Present your
products, and
where they fit in Here’s how I can help
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Best practice…
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Be the best at knowing & understanding your advisors’ practice
Strategy #1 Strategy #2 Strategy #3 Strategy #4
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Be the best at making personal connections with target advisors
“Advisors work with wholesalers they are comfortable with”
Two keys to achieving this state…
Self-disclosure: the hallmark
of a strong relationship
Not manipulative, framed as
furthering the relationship
Relevant information about
the wholesaler
Readiness to work together
To achieve advisors’ goals
Understanding that
this comes before the
wholesalers’ objectives
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Page 29 May 22, 2013 www.emiboston.com
Be the best at making personal connections with target advisors
Yesterday
Business card
Brochure
Corporate web site
Tactical execution example:
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Page 30 May 22, 2013 www.emiboston.com
Be the best at making personal connections with target advisors
Personal Digital Profile (gateway to corporate site)
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Today & the Future
Personal brochure
Social presence
Page 31 May 22, 2013 www.emiboston.com
Be the best at engaging target advisors
Effectively harness Intermediary Relationship Marketing to create distribution platform leverage:
Value Proposition
Messaging
Segmentation
Precise, consistent value proposition to your advisors
Advisor channel segmentation to ensure profitability
content relevance, and prioritize activities
Messaging: narrative, anchored in value proposition
and shaped by segmentation
Dynamic intelligence accumulation and synthesis
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Accumulation/
Synthesis
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Be the best at engaging target advisors
Examples of IRM
Paid Search
Defining
Preferences
Commentary
Strategy #1 Strategy #2 Strategy #3 Strategy #4
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Be the best at supporting advisors in building client relationships
Low level of financial literacy
Anxiety over personal finance topics
“Are you anxious about having enough
money in retirement?”
Those within ages 45 – 65 responding
“somewhat” or “very anxious”
All >$200k
in savings
56% 44%
Source: 2013 Survey of Financial Decisions among Washington State Residents AARP
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Page 34 May 22, 2013 www.emiboston.com
Be the best at supporting advisors in building client relationships
Today’s Necessity
Chief investor
concern
Tangible,
entertaining
content to
frame concept Real life stories investors
can relate to
Investor name
Yesterday’s Convention
Strategy #1 Strategy #2 Strategy #3 Strategy #4
Page 35 May 22, 2013 www.emiboston.com
Reprise: The Four Success Strategies
Be the best at:
Knowing & understanding each advisor’s practice
Making relationships more personal & effective
Driving sustained advisor engagement
Supporting the advisor-client relationship
Page 36 May 22, 2013 www.emiboston.com
Four Strategies to Grow Share with Your Advisor Channels
Questions,
Discussion
Contact Information
David Ehrenthal EMI Strategic Marketing
617-226-4352
Linkedin.com/in/davidehrenthal
@EMI_mktg4retire
Dana Anspach Sensible Money, LLC
7051 East Fifth Avenue Suite F
Scottsdale, AZ 85251
480-719-7290