Expanding the range of financial advisors that use their products and solutions is a core sales and marketing objective for asset managers, annuity firms, broker-dealers, custodians, and technology providers that rely on intermediaries. How to attract the attention and build familiarity with “new” advisors – those who have not done business with a provider previously – is a major challenge for product and solutions providers. Significant resources are dedicated to sales personnel, value add programs, targeted marketing, events, and other activities designed to broaden the footprint of users for product and service providers. Yet how advisors identify and consider new providers and the most effective ways to develop relationships remain among the most difficult issues facing business development, sales, and marketing organizations.
In this new 91-page report, Practical Perspectives examines how product and service providers can build business among unserved advisors. The report reviews how advisors consider and use new providers and how product and solutions providers such as asset managers and insurance firms can initiate relationships with advisors not yet doing business with them. This in-depth report builds on prior studies conducted by our firm and combines distinct research insights with practical, consulting oriented analysis. Input for the report comes from proprietary research completed in December 2019 with over 650 advisors with findings broken out for RIAs, independent brokers, and wirehouse, national, and regional broker-dealers.
Key Topic Areas
Advisors Consideration and Use of New Product and Solutions Providers
How Product and Services Providers Can Initiate New Relationships with Advisors Not Previously Served
To Order the Report
The study is available in PDF format to preferred clients for the subscription price of $5,350. To order the complete 91- page, 51-exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyHow can asset managers, annuity or insurance companies, technology firms, and other service providers reach out and develop relationships with financial advisors who have not previously done business with them before? This is one of the most significant opportunities facing the sales and marketing teams of organizations working closely with broker-dealer advisors and RIAs. And it is a question we are asked over and over in the consulting and research work we undertake for our clients. The goal of this new report is to offer a fresh, data-driven view examining the opportunity to develop business with the untapped audience of advisors who have yet to use products or services offered by a provider. This in-depth report builds on prior research conducted on sales and marketing activities directed to advisors. The report provides relevant and actionable information for key constituents including asset managers, annuity providers, broker-dealers, custodians, distribution platforms, software providers, and other firms interested in expanding their footprint across a broader base of advisors.
“Initiating New Relationships with Advisors” examines the efforts of providers to attract new business with practitioners who have not used their products or services before. The analysis looks in detail at advisor interest in using new providers, the typical circumstances that drive them to consider new providers, the ways advisors typically identify providers they have not used before, the forms of marketing and sales contact most effective in gaining advisors attention, and the most crucial actions providers can take to build familiarity and increase the likelihood advisors will begin to use their products and solutions. The report breaks out data and findings for the entire sample and for key advisor channels – Full Service broker-dealers, Independent broker-dealers, and independent RIAs.
Among the key questions addressed in this report are:
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Consideration and Use of New Product and Solution Providers
A. To what extent are advisors likely to turn to new providers rather than rely on existing providers they already do business with?
B. What are the typical circumstances reflecting advisors recent use of new providers?
C. How typical is it for advisors to begin to use providers they have not previously done business with?
D. What percentage of new providers considered do advisors ultimately do business with?
E. To what extent do advisors employ a formal process to consider and evaluate potential new providers?
F. How often do advisors typically consider new providers?
G. How widely do advisors consider new providers when identifying potential new products or solutions they may use?
H. In the next 12 months, how likely are advisors to use new providers for asset management, annuity or insurance solutions, and software or technology needs?
I. How challenging is it for advisors to identify and analyze new providers and what are the key challenges they encounter?
J. When initiating new relationships with providers, to what extent do advisors commit to these sources?
Section IV: How Product and Solution Providers Can Initiate Business with Advisors Not Previously Served
A. How do advisors typically identify new providers for products and solutions?
B. What are the most important methods of outreach for advisors to initially become familiar with new providers?
C. What characteristics define new providers that advisors are most likely to do business with?
D. In their own words, what do advisors perceive as the most important actions that can get their attention or create familiarity with new providers?
E. How many direct contacts do advisors typically have with a new provider before doing business?
F. How important is it for advisors to have personal contact or establish a personal relationship with a new provider before doing business for the first time?
G. In the past 12 months, what types of support have advisors relied on from product providers they did not do business with at the time?
H. To what extent do various types of support from product providers they do not use increase advisor likelihood of doing business with these firms in the foreseeable future?
I. How important are value add programs and support to building new business among advisors who have not previously used products or solutions from a provider?
J. In their own words, what would be most useful to increasing the likelihood that advisors will use products or solutions from a provider they have not previously done business with?
Section V: Profile of Survey Respondents
Section VI: Implications and Outlook
List of Exhibits
Exhibit 1: Typical Approach for Advisors Evaluating Providers
Exhibit 2: Typical Approach for Advisors Evaluating Providers by Channel
Exhibit 3: Circumstances for Most Recent Consideration of a New Product or Solutions Provider
Exhibit 4: Circumstances for Most Recent Consideration of a New Product or Solutions Provider by Channel
Exhibit 5: Use of New Providers in Past 12 Months in Key Categories
Exhibit 6: Use of New Providers in Past 12 Months in Key Categories by Channel
Exhibit 7: Number of New Providers Used in Past 12 Months in Key Categories
Exhibit 8: Number of New Providers Used in Past 12 Months by Full Service Advisors
Exhibit 9: Number of New Providers Used in Past 12 Months by Independent Advisors
Exhibit 10: Number of New Providers Used in Past 12 Months by RIAs
Exhibit 11: Percentage of New Providers Considered Which Advisors Ultimately Used
Exhibit 12: Used More Than 25% of New Providers Considered by Channel
Exhibit 13: Process to Consider and Evaluate New Providers
Exhibit 14: Process to Consider and Evaluate New Providers by Channel
Exhibit 15: Ongoing Consideration of New Providers vs. Needs Driven
Exhibit 16: Ongoing Consideration of New Providers vs. Needs Driven by Channel
Exhibit 17: Frequency of Considering New Providers
Exhibit 18: Frequency of Considering New Providers by Channel
Exhibit 19: Evaluating New Solutions – Limit Providers vs. Wide Range of Providers
Exhibit 20: Evaluating New Solutions – Limit Providers vs. Wide Range of Providers by Channel
Exhibit 21: Likely Use of New Providers in Key Categories During Next 12 Months
Exhibit 22: Very/Somewhat Likely to Use New Providers in Next 12 Months by Channel
Exhibit 23: Challenging to Identify and Analyze New Providers
Exhibit 24: Challenging to Identify and Analyze New Providers by Channel
Exhibit 25: Key Challenges in Identifying and Analyzing New Providers
Exhibit 26: Key Challenges in Identifying and Analyzing New Providers by Channel
Exhibit 27: Commitment When Initiating Relationship with New Providers
Exhibit 28: Commitment When Initiating Relationship with New Providers by Channel
Exhibit 29: How Advisors Typically Identify New Providers
Exhibit 30: How Advisors Typically Identify New Providers by Channel
Exhibit 31: Most Important Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers
Exhibit 32: Most Important Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers by Channel
Exhibit 33: Characteristics Defining New Providers Advisors Most Likely to Use
Exhibit 34: Characteristics Defining New Providers Advisors Most Likely to Use by Channel
Exhibit 35: Focus in Selecting New Providers
Exhibit 36: Focus in Selecting New Providers by Channel
Exhibit 37: Number of Direct Contacts with a New Provider Before Doing Initial Business
Exhibit 38: 3 or More Direct Contacts with New Providers Before Doing Initial Business by Channel
Exhibit 39: Importance of Personal Contact or Relationship with New Provider
Exhibit 40: Importance of Personal Contact or Relationship with Provider by Channel
Exhibit 41: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider
Exhibit 42: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider by Channel
Exhibit 43: Support Relied on from Product Providers Prior to Doing Business
Exhibit 44: Support Relied on from Product Providers Prior to Doing Business by Channel
Exhibit 45: Influence of Support on Advisors Likelihood of Doing Business with Providers Not Previously Used
Exhibit 46: Support with Most Significant Increase on Advisors Likelihood of Doing Business with Providers Not Previously Used by Channel
Exhibit 47: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers.....
Exhibit 48: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers by Channel
Exhibit 49: Profile of Respondents by Key Characteristics
Exhibit 50: Investment Vehicles Used
Exhibit 51: Significant Use of Investment Vehicles by Channel
In this new 91-page report, Practical Perspectives examines how product and service providers can build business among unserved advisors. The report reviews how advisors consider and use new providers and how product and solutions providers such as asset managers and insurance firms can initiate relationships with advisors not yet doing business with them. This in-depth report builds on prior studies conducted by our firm and combines distinct research insights with practical, consulting oriented analysis. Input for the report comes from proprietary research completed in December 2019 with over 650 advisors with findings broken out for RIAs, independent brokers, and wirehouse, national, and regional broker-dealers.
Key Topic Areas
Advisors Consideration and Use of New Product and Solutions Providers
- To what extent do advisors turn to new providers rather than rely on existing providers?
- What are the typical circumstances driving advisors to consider and use new providers?
- How typical is it for advisors to use new asset managers, annuity or insurance firms, and other service or solutions providers?
- How often do advisors consider new providers and how formal is their process for evaluating these sources?
- In the next 12 months, how likely are advisors to use new providers across key categories?
- What are the key challenges advisors encounter in identifying and selecting previously unused providers?
How Product and Services Providers Can Initiate New Relationships with Advisors Not Previously Served
- How do advisors typically identify new providers for products and solutions?
- What are the most important methods of marketing and sales outreach for advisors to become familiar with new providers?
- What characteristics define the unused providers that advisors are most likely to consider?
- What do advisors perceive as the most important actions new providers can take to gain their attention and create familiarity?
- How important to advisors is wholesaling or other forms of establishing a personal relationship before doing business with providers not relied on before?
- What types of support from providers they have not done business with do advisors typically rely on?
- How useful is value add marketing support and programs to establishing new relationships with advisors?
- What are the most important steps product providers can take to increase the likelihood advisors will do business with a source they have not previously used?
To Order the Report
The study is available in PDF format to preferred clients for the subscription price of $5,350. To order the complete 91- page, 51-exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and MethodologyHow can asset managers, annuity or insurance companies, technology firms, and other service providers reach out and develop relationships with financial advisors who have not previously done business with them before? This is one of the most significant opportunities facing the sales and marketing teams of organizations working closely with broker-dealer advisors and RIAs. And it is a question we are asked over and over in the consulting and research work we undertake for our clients. The goal of this new report is to offer a fresh, data-driven view examining the opportunity to develop business with the untapped audience of advisors who have yet to use products or services offered by a provider. This in-depth report builds on prior research conducted on sales and marketing activities directed to advisors. The report provides relevant and actionable information for key constituents including asset managers, annuity providers, broker-dealers, custodians, distribution platforms, software providers, and other firms interested in expanding their footprint across a broader base of advisors.
“Initiating New Relationships with Advisors” examines the efforts of providers to attract new business with practitioners who have not used their products or services before. The analysis looks in detail at advisor interest in using new providers, the typical circumstances that drive them to consider new providers, the ways advisors typically identify providers they have not used before, the forms of marketing and sales contact most effective in gaining advisors attention, and the most crucial actions providers can take to build familiarity and increase the likelihood advisors will begin to use their products and solutions. The report breaks out data and findings for the entire sample and for key advisor channels – Full Service broker-dealers, Independent broker-dealers, and independent RIAs.
Among the key questions addressed in this report are:
- To what extent are advisors likely to turn to previously unused providers rather than rely on existing providers they already do business with?
- What are the typical circumstances reflecting advisors use of new product providers?
- Over the past year, how typical is it for advisors to use providers they have not previously done business with?
- How often do advisors generally consider new providers?
- In the next 12 months, how likely are advisors to use new providers for asset management, annuity or insurance solutions, technology, or other services and support?
- What characteristics define the product providers advisors are most likely to engage with?
- How challenging is it for advisors to select new providers and what are the key concerns or issues advisors encounter?
- How do advisors typically identify new product and solution providers?
- What are the most important methods of outreach for advisors becoming familiar with new providers?
- Which forms of contact from a provider they have not previously used are most effective in gaining advisors initial attention?
- When initiating relationships with previously unused providers, how committed are advisors to the relationship?
- What are the most important actions providers can do to get the attention or create familiarity among advisors who have not done business with them?
- How important is it for advisors to have personal contact or establish a personal relationship with a new provider before doing business for the first time?
- In the past 12 months, what types of support have advisors relied on from product providers they did not do business with at the time?
- How important are value-add programs and support to building new business among advisors who have not previously used products from a provider?
- What support or actions would be most useful to increasing the likelihood advisors will take advantage of products or solutions from a provider they have not previously used?
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Consideration and Use of New Product and Solution Providers
A. To what extent are advisors likely to turn to new providers rather than rely on existing providers they already do business with?
B. What are the typical circumstances reflecting advisors recent use of new providers?
C. How typical is it for advisors to begin to use providers they have not previously done business with?
D. What percentage of new providers considered do advisors ultimately do business with?
E. To what extent do advisors employ a formal process to consider and evaluate potential new providers?
F. How often do advisors typically consider new providers?
G. How widely do advisors consider new providers when identifying potential new products or solutions they may use?
H. In the next 12 months, how likely are advisors to use new providers for asset management, annuity or insurance solutions, and software or technology needs?
I. How challenging is it for advisors to identify and analyze new providers and what are the key challenges they encounter?
J. When initiating new relationships with providers, to what extent do advisors commit to these sources?
Section IV: How Product and Solution Providers Can Initiate Business with Advisors Not Previously Served
A. How do advisors typically identify new providers for products and solutions?
B. What are the most important methods of outreach for advisors to initially become familiar with new providers?
C. What characteristics define new providers that advisors are most likely to do business with?
D. In their own words, what do advisors perceive as the most important actions that can get their attention or create familiarity with new providers?
E. How many direct contacts do advisors typically have with a new provider before doing business?
F. How important is it for advisors to have personal contact or establish a personal relationship with a new provider before doing business for the first time?
G. In the past 12 months, what types of support have advisors relied on from product providers they did not do business with at the time?
H. To what extent do various types of support from product providers they do not use increase advisor likelihood of doing business with these firms in the foreseeable future?
I. How important are value add programs and support to building new business among advisors who have not previously used products or solutions from a provider?
J. In their own words, what would be most useful to increasing the likelihood that advisors will use products or solutions from a provider they have not previously done business with?
Section V: Profile of Survey Respondents
Section VI: Implications and Outlook
List of Exhibits
Exhibit 1: Typical Approach for Advisors Evaluating Providers
Exhibit 2: Typical Approach for Advisors Evaluating Providers by Channel
Exhibit 3: Circumstances for Most Recent Consideration of a New Product or Solutions Provider
Exhibit 4: Circumstances for Most Recent Consideration of a New Product or Solutions Provider by Channel
Exhibit 5: Use of New Providers in Past 12 Months in Key Categories
Exhibit 6: Use of New Providers in Past 12 Months in Key Categories by Channel
Exhibit 7: Number of New Providers Used in Past 12 Months in Key Categories
Exhibit 8: Number of New Providers Used in Past 12 Months by Full Service Advisors
Exhibit 9: Number of New Providers Used in Past 12 Months by Independent Advisors
Exhibit 10: Number of New Providers Used in Past 12 Months by RIAs
Exhibit 11: Percentage of New Providers Considered Which Advisors Ultimately Used
Exhibit 12: Used More Than 25% of New Providers Considered by Channel
Exhibit 13: Process to Consider and Evaluate New Providers
Exhibit 14: Process to Consider and Evaluate New Providers by Channel
Exhibit 15: Ongoing Consideration of New Providers vs. Needs Driven
Exhibit 16: Ongoing Consideration of New Providers vs. Needs Driven by Channel
Exhibit 17: Frequency of Considering New Providers
Exhibit 18: Frequency of Considering New Providers by Channel
Exhibit 19: Evaluating New Solutions – Limit Providers vs. Wide Range of Providers
Exhibit 20: Evaluating New Solutions – Limit Providers vs. Wide Range of Providers by Channel
Exhibit 21: Likely Use of New Providers in Key Categories During Next 12 Months
Exhibit 22: Very/Somewhat Likely to Use New Providers in Next 12 Months by Channel
Exhibit 23: Challenging to Identify and Analyze New Providers
Exhibit 24: Challenging to Identify and Analyze New Providers by Channel
Exhibit 25: Key Challenges in Identifying and Analyzing New Providers
Exhibit 26: Key Challenges in Identifying and Analyzing New Providers by Channel
Exhibit 27: Commitment When Initiating Relationship with New Providers
Exhibit 28: Commitment When Initiating Relationship with New Providers by Channel
Exhibit 29: How Advisors Typically Identify New Providers
Exhibit 30: How Advisors Typically Identify New Providers by Channel
Exhibit 31: Most Important Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers
Exhibit 32: Most Important Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers by Channel
Exhibit 33: Characteristics Defining New Providers Advisors Most Likely to Use
Exhibit 34: Characteristics Defining New Providers Advisors Most Likely to Use by Channel
Exhibit 35: Focus in Selecting New Providers
Exhibit 36: Focus in Selecting New Providers by Channel
Exhibit 37: Number of Direct Contacts with a New Provider Before Doing Initial Business
Exhibit 38: 3 or More Direct Contacts with New Providers Before Doing Initial Business by Channel
Exhibit 39: Importance of Personal Contact or Relationship with New Provider
Exhibit 40: Importance of Personal Contact or Relationship with Provider by Channel
Exhibit 41: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider
Exhibit 42: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider by Channel
Exhibit 43: Support Relied on from Product Providers Prior to Doing Business
Exhibit 44: Support Relied on from Product Providers Prior to Doing Business by Channel
Exhibit 45: Influence of Support on Advisors Likelihood of Doing Business with Providers Not Previously Used
Exhibit 46: Support with Most Significant Increase on Advisors Likelihood of Doing Business with Providers Not Previously Used by Channel
Exhibit 47: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers.....
Exhibit 48: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers by Channel
Exhibit 49: Profile of Respondents by Key Characteristics
Exhibit 50: Investment Vehicles Used
Exhibit 51: Significant Use of Investment Vehicles by Channel
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