Expanding the range of financial advisors that use their products and solutions is a core sales and marketing objective for asset managers, insurance firms, broker-dealers, custodians, and other service and support 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 sales and marketing organizations.
In this new 101-page report, Practical Perspectives, a leading consulting and research firm, 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 marketing and sales 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 November 2017 with over 825 advisors including those affiliated with RIAs, independent brokers, and wirehouse, national, and regional firms.
Key Topics
Among the key questions addressed in this report are:
o To what extent are advisors likely to turn to new providers rather than rely on existing providers they already do business with?
o What are the typical circumstances reflecting advisors recent use of new product providers?
o Over the past year, how typical is it for advisors to use providers they have not previously done business with?
o How often do advisors typically consider new providers?
o In the next 12 months, how likely are advisors to use new providers for asset management, insurance solutions, or other services and support?
o How do advisors typically identify new product and solutions providers?
o What are the most important methods of outreach for advisors becoming familiar with new providers?
o Which forms of contact are most effective in gaining advisors initial attention from a provider they have not previously used?
o 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?
o 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?
o 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?
o How important are value-add programs and support to building new business among advisors who have not previously used products from a provider?
o What support or actions would be most useful to increasing the likelihood advisors will use products or solutions from a provider they have not previously used?
To Order the Report
The study is available in PDF format to preferred clients for the subscription price of $3,500. To order the complete 101- page, 49-exhibit report or for more information, please contact:
Howard Schneider, 978-590-7290 or email howard.schneider@practicalperspectives.com
Introduction and Methodology
How can asset managers, insurance companies, 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 our consulting and research work we undertake for our clients. The goal in this new report is to offer a fresh data driven view from the perspective of advisors that examines the opportunity to develop business with the untapped audience who have yet to use a providers products or services. This in-depth report combines distinct research insights with practical, consulting oriented analysis. It builds on prior research we have conducted on related marketing and sales activities related to engaging with advisors. The report is written to provide relevant and actionable information for key constituents including asset managers, annuity providers, broker-dealers, distribution platforms, and other firms interested in expanding their footprint across a broader base of advisors.
“Initiating New Relationships with Advisors” examines how advisors perceive the efforts of providers to attract new business with those who not have 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 use their products and solutions. The study looks at how advisors consider and use new providers and how product and solutions providers can initiate business with advisors not yet doing business with them. 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.
This report is based on input from a randomly selected cross-section of advisors across key channels. In November 2017, advisors were asked to participate in a proprietary online survey regarding working with product and solutions providers. More than 825 advisors provided responses that form the basis for this report. Advisors did not receive any compensation for participation in the survey.
Table of Contents
Section I: Executive Summary
Section II: Introduction and Methodology
Section III: Advisors Consideration and Use of New Product and Solutions 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 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, insurance solutions, and other services and support?
Section IV: How Product and Solutions 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. Which forms of contact are most effective in gaining advisors initial attention from a provider they have not previously used?
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?
G. 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?
H. 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 Asset Managers Used in Past 12 Months by Channel
Exhibit 9: Number of New Insurance Providers Used in Past 12 Months by Channel
Exhibit 10: Number of New Service or Support Providers Used in Past 12 Months by Channel
Exhibit 11: Percentage of New Providers Considered Which Advisors Ultimately Used
Exhibit 12: Percentage of New Providers Considered Which Advisors Ultimately Used 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 in Next 12 Months
Exhibit 22: Likely Use of New Asset Management Providers in Next 12 Months by Channel
Exhibit 23: Likely Use of New Insurance Providers in Next 12 Months by Channel
Exhibit 24: Likely Use of New Service and Support Providers in Next 12 Months by Channel
Exhibit 25: How Advisors Typically Identify New Providers
Exhibit 26: How Advisors Typically Identify New Providers by Channel
Exhibit 27: Importance of Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers
Exhibit 28: Importance of Marketing and Sales Approaches to Advisors Becoming Familiar with New Providers by Channel
Exhibit 29: Forms of Contact Most Effective in Attracting Advisors Initial Attention
Exhibit 30: Forms of Contact Most Effective in Attracting Advisors Initial Attention by Channel
Exhibit 31: Number of Direct Contacts with a New Provider Before Doing Initial Business
Exhibit 32: Number of Direct Contacts with a New Asset Management Provider Before Doing Initial Business by Channel
Exhibit 33: Number of Direct Contacts with a New Insurance Provider Before Doing Initial Business by Channel
Exhibit 34: Number of Direct Contacts with a New Service and Support Provider Before Doing Initial Business by Channel
Exhibit 35: Importance of Personal Contact or Relationship with New Provider
Exhibit 36: Importance of Personal Contact or Relationship with New Asset Management Provider by Channel
Exhibit 37: Importance of Personal Contact or Relationship with New Insurance Provider by Channel
Exhibit 38: Importance of Personal Contact or Relationship with New Service and Support Provider by Channel by Channel
Exhibit 39: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider
Exhibit 40: Importance of Contact from Wholesaler or Field Rep in Establishing Relationship with New Provider by Channel
Exhibit 41: Support Relied on from Product Providers Prior to Doing Business
Exhibit 42: Support Relied on from Product Providers Prior to Doing Business by Channel
Exhibit 43: Influence of Support on Advisors Likelihood of Doing Business with Providers Not Previously Used
Exhibit 44: Support with Most Significant Influence on Advisors Likelihood of Doing Business with Providers Not Previously Used
Exhibit 45: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers
Exhibit 46: Agreement with Importance of Value Add Support in Initiating Relationship with New Providers by Channel
Exhibit 47: Profile of Respondents by Key Characteristics
Exhibit 48: Investment Vehicles Used
Exhibit 49: Significant Use of Investment Vehicles by Channel
RSS Feed