Building Deeper Advisory Relationships with Data

Building Deeper Advisory Relationships with Data

• 1.
  www.nicsa.org | #WebinarWednesdays Thankyou for attending our webinar today. We will begin momentarily.
• 2.
  www.nicsa.org | #WebinarWednesdays BuildingDeeper Relationships with Data WELCOME This webinar and the slides contained herein do not constitute legal advice or recommendations for specific actions for your firm. March 21, 2019
• 3.
  Presenters www.nicsa.org | #WebinarWednesdays TimKresl Principal, Distribution Insight Broadridge Financial Solutions Katie Firth Head of Distribution Operations & Business Intelligence John Hancock Investments
• 4.
  4© 2018 | Broadridgeat a glance www.nicsa.org | #WebinarWednesdays in equity and fixed income trades processed per day $4B+ 5 $6T+ 5B+ decades of experience in the financial services industry revenue as of FY18 customer communications processed annually $13T in tracked financial intermediary assets 21KRIA and BD firms 67K BD office locations 421Mindividual accounts 326K RIA and BD advisors 80+ 40+countries in which securities processing is supported clients for managed services in North America 150 98%Brokerage firms on our securities processing platforms client revenue retention rate DATA IS OUR DIFFERENCE:One of a few select U.S. companies supporting the financial services industry that is ISO 27001 certified [NYSE:BR] part of the S&P 500® Index
• 5.
  www.nicsa.org | #WebinarWednesdays BACKGROUNDMETHODOLOGY FINDINGS DISCUSSION
• 6.
  6© 2018 | Assetscontinue to shift to passive products Source: Broadridge Data and Analytics Positive net flows into passive products accelerated through the end of Q4 2018, continuing to put downward pressure on average expense ratios. www.nicsa.org | #WebinarWednesdays ACTIVE vs. PASSIVE FLOWS (2018) -$250B -$200B -$150B -$100B -$50B $B $50B $100B 1Q2018 2Q2018 3Q2018 4Q2018 Active MFs Index MFs ETFs BACKGROUND
• 7.
  7© 2018 | Newdistribution models to meet the needs of millennials Source: Broadridge Data and Analytics, Phoenix Marketing International Boomers account for the lion’s share of assets, but millennials will force adoption of new distribution models, including focus on passive and demand for digitally led advice. 28% 26% 24% 21% 10% 9% 7% 5% 0% 10% 20% 30% 40% Millennials (22-37) Gen X (38-53) Boomers (54-72) Silent (73-90) ETF MF - Passive Passive as Percentage of MF & ETF AUM Share Investors Use of Robo-Advisors (%) www.nicsa.org | #WebinarWednesdays Gen X 32% Boomers 5% Millennials 63% Average AUM by Investor Segment 2017 $42,096 $128,583 $250,586 $315,586 $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Millennials (22-37) Gen X (38-53) Boomers (54-72) Silent (73+) % of Total: 2.02% 16.14% 57.50% 24.34% BACKGROUND
• 8.
  8© 2018 | Theimportance of segmentation continues to grow Source: Broadridge Data and Analytics, Phoenix Marketing International AUM by Wealth Segment 2017 (%) $61,501 $200,449 $658,731 $4,229,631 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 Mass Market Mass Affluent High Net Worth Ultra High Net Worth Mass Market and Mass Affluent investors make up the majority of industry AUM, highlighting the challenge of effective investor and advisor communication. Average AUM by Wealth Segment BACKGROUND www.nicsa.org | #WebinarWednesdays High Net Worth 39% Mass Market 8% Mass Affluent 49% Ultra High Net Worth 4%
• 9.
  www.nicsa.org | #WebinarWednesdays BACKGROUNDMETHODOLOGY FINDINGS DISCUSSION
• 10.
  10© 2018 | Howasset management marketing executives are approaching advisor relationships Research Methodology • Ten in-depth, one-hour interviews were conducted with asset management firm marketing executives, many of whom are Chief Marketing Officers. • Firms included in this research represent a broad spectrum of the industry, ranging from mid-tier to very large asset managers. • The extent to which the advisor journey and leveraging data and analytics to deepen client relationships is an area of focus for asset managers. • Challenges and roadblocks to achieving success. • Actions asset managers have taken or plan to take to create a more holistic, relationship-driven approach to client engagement. Areas of Focus of the Report METHODOLOGY Findings from Data and the Search for Deeper Relationships, published September, 2018 www.nicsa.org | #WebinarWednesdays
• 11.
  www.nicsa.org | #WebinarWednesdays BACKGROUNDMETHODOLOGY FINDINGS DISCUSSION
• 12.
  12© 2018 | FindingI: Segmentation Asset managers are implementing or considering a variety of tactics to create a more client-centric, advisor journey focus. • Hiring staff from outside the financial industry with experience in digital, customer experience and/or journey mapping • Segmenting advisors based on needs rather than channel and sales volume • Forming a working group with executives from marketing, sales and operations to drive the process • Tackling this challenge with smaller proof of concept initiatives prior to a broader, expanded execution • Integrating and upgrading existing technology and data analytic capabilities FINDINGS We have a centralized tool that aggregates data and that’s the basis for our reporting. But it’s not yet built into the client journey; we can cut the data by sales channel, and prospects versus producers. ” “ The ultimate vision is I can always identify where an advisor is in our ecosystem and bring that information back into a central place so that any person in the organization can pull it. ” “ www.nicsa.org | #WebinarWednesdays
• 13.
  13© 2018 | AnalysisIs only as valuable as its impact Good analysis starts with good questions Not all data is created equal Getting more from segmentation projects Taking the right approach to segmentation and analytics will help firms get more out of existing data by asking the right questions and selecting the right analytical techniques. FINDINGS • Firms have unique business environments, therefore analytic questions must be framed in the right context • Key stakeholders should work together to identify what data is needed to answer their specific questions as part of the process • Data is only valuable if it serves a purpose; it is more important to have the right data than the most data • Key stakeholders need to identify the right data that is needed to answer their specific questions rather than the perfect data that can answer all questions • Insights need to drive action—analyses need to consider the end user, how they work, and their agency • Firms need to thoroughly understand existing internal processes and ensure insights drive decisions www.nicsa.org | #WebinarWednesdays
• 14.
  14© 2018 | FindingII: Content marketing Seen as mission-critical and growing in importance as a tool to deepen and expand the client relationship. • Commoditization of product requires asset managers to differentiate and stay top-of-mind with relevant, proprietary content. • Digital has become a preferred mechanism for client interaction and the delivery of targeted content. • With so much content available in the marketplace (advisors are inundated), it is critical to get the right content to the right advisor at the right time. • CRM platforms must be able to incorporate knowledge of an advisor’s areas of interest, preferred types of content, desired frequency of receiving information and content distribution preferences. FINDINGS The world has moved to content marketing.Traditional marketing describes value whereas content marketing delivers value. ” “ Content is going to be a challenge. I think nowadays content is king—bottom line, maybe even bigger than distribution. Because if you’re going to have these journeys and keep people engaged and deliver the things that they want, we’ve got to have a lot of stuff there in order to stay in front of these individuals. ” “ www.nicsa.org | #WebinarWednesdays
• 15.
  15© 2018 | FindingIII: Mapping the client journey Asset managers recognize the importance of developing a more holistic understanding of advisor-client relationships, yet most are still in the early stages. • Asset managers are implementing digital engagement strategies and discussing opportunities to better understand advisor client needs and preferred ways of working. Yet, it has been a gradual process, with acknowledgment that much work is still to be done. • Key factors impacting the pace of activation include: – Building organizational understanding and alignment on the definition of a journey strategy: What it is, what is needed and what is the ROI? – Getting buy-in from key stakeholders (sales, marketing, operations and technology) – Moving from ad hoc initiatives to a more systematic and programmable engagement FINDINGS We haven’t gotten that far yet. The last 20 years within our division we focused on product as our brand. And now we’re shifting that dialogue and focusing on the experience. ” “ Is there a formal map for thinking about engagement with advisors? We don’t yet have that in place. ” “ The customer journey is pretty much in the domain of marketers versus sales people; I don’t think you bump into a lot of sales people who are thinking of a customer journey. I think they execute a customer journey in many respects but they think of it more as relationship management. “ ” www.nicsa.org | #WebinarWednesdays
• 16.
  16© 2018 | Clientjourney map www.nicsa.org | #WebinarWednesdays FINDINGS DABBLERS PRODUCERSDEFECTORSPROSPECTS EVANGELISTS Prospect validation gate
• 17.
  17© 2018 | FindingIV: The path forward Traditional roles for sales and marketing are shifting as the economics of the business is impacted. Marketing is becoming more involved in driving revenue. Its role needs to evolve to integrating data and analytics in support of advisor acquisition and retention. Success factors include: • Alignment of all key stakeholders in the firm: – C-suite buy-in – Start at the end-game and work backward. Ask questions, starting with what are we trying to achieve?” – Adopt a common language between all parties – Assigning ownership to someone within the firm • Assigning ownership to someone within the firm • Conducting an audit of where, how and for whom data is created and how is it consumed • Hiring talent with the requisite experience in client experience/journey mapping, tapping into other industries • Developing a client segmentation strategy with more robust data and more advanced analytics • Mapping the client journey with an integrated contact strategy and meaningful KPIs www.nicsa.org | #WebinarWednesdays FINDINGS To breakthrough we need to change to a more agile, dynamic approach. What it will take: experiment, agile processes and mindset. ” “
• 18.
  www.nicsa.org | #WebinarWednesdays BACKGROUNDMETHODOLOGY FINDINGS DISCUSSION
• 19.
  Questions and Answers www.nicsa.org| #WebinarWednesdays Tim Kresl Principal, Distribution Insight Broadridge Financial Solutions Tim.Kresl@broadridge.com
• 20.
  20© 2018 | Todownload the report, Data and the Search for Deeper Relationships, visit broadridge.com/white-paper/data-and-the- search-for-deeper-relationships Thank you for joining us today www.nicsa.org | #WebinarWednesdays