Advisor Advantage The Ultimate Authority on Financial Advisors

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Advisor Advantage

The Ultimate Authority on Financial Advisors

Deliverables 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.

• Presentation of findings

• Analytic Report with Executive Summary

• Complete dataset (SAS/SPSS)

• Standard segmentations

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.

• Standard Tabulations

• Ad hoc Custom Analysis (optional)

• Custom segmentations

(optional) _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:

• Segmentations appended to lists of Financial Advisors (optional)

Stakeholders Recruiting / Retention National Sales Product Sales Strategic Planning Market Research Advisor Research

• 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. Contact

For more information, please contact:

lcohen@sbi-i.com

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Advisor Advantage

Stakeholders National Sales Product Sales Strategic Planning Market Research Advisor Research Recruiting / Retention

• 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 Benefits to Recruiting and Retention Stakeholders

• Retaining the best advisors 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.

• Finding and recruiting existing advisors

• Finding and recruiting new advisors

Contact

Larry Cohen +1 609 734 2048 lcohen@sbi-i.com

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Sample Recruiting/Retention Plan with AA Inputs

GOAL: Redesign the compensation plan to reward advisors who

deepen client relationships.

Evaluation Implementation Comprehensive Plan Research and Analysis

What is the business focus of our advisors?

Action: Apply business f ocus segmentation to identify advisors who are comprehensive financial planners and adjust compensation package to incent comprehensive financial planning AA Stan dard Bus in e ss Foc us Re port AA Bu sine s s Foc u s Se g m e ntation • Comprehensive financial planner • Securities trader • Investment manager • Financial analyst • Tax strategist • Retirement planning • Small business services Find answers in:

What motivates advisors?

Action: Create a compensation plan that maximizes defined motivations.

AA M otivators

Re port Find answers in:

What is the advisory style of our advisors?

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.

Find answers in:

How does the method of compensation shape advisors books?

Action: Update compensation plan to reflect product affinity of fee-based advisors.

Find answers in: AA Stan dard Advisory

Style Re p ort • Collaborative • Delagative • Sounding board • Prescriptive • Authoritative

AA Cus tom Re port Show in g Com p e ns ation Type s • Commissioned

• Fee-based • Hourly • Salary

• Owner vs. product compensation • Broad spectrum

• Diversified • Limited

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Advisor Advantage

Stakeholders Product Sales Strategic Planning Market Research Advisor Research Recruiting / Retention

• 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?

National Sales

Stakeholder Issues Benefits to National Sales Stakeholders

• Increasing revenue/profitability Using data and analysis from Advisor Advantage provides a

competitive edge to National Sales, 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.

• Improving wholesaler efficiency

• Maximizing sales through existing advisor relationships

• Identifying and capturing new advisor relationships

Contact

• Targeting product sales

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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

How do our advisors obtain new relationships?

Action: Provide marketing materials, training, and branch support to empower brokers to obtain new relationships.

What is the best driver to motivate advisors to reach their goals?

Action: Ensure compensation plan contains motivators.

AA M otivator Re port Find answers in:

What triggers investors to begin a relationship with an advisor?

Action: Train advisors to market to trigger points.

Find answers in: AA Ge ne ral Pre se ntation AA M arke tin g Style Re p ort • Referrals • Networking • Solicitation • Seminars • Professional Groups/Associations AA Re lations hip Trig g e r Re port

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Advisor Advantage

Stakeholders

Strategic Planning

Market Research

Advisor Research Recruiting / Retention

• 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?

National Sales

Product Sales

Stakeholder Issues Benefits to Product Sales Stakeholders

• Increasing revenue/profitability

for a product line Using data and analysis from _{competitive edge to Product Sales, allowing them to uncover how to}Advisor Advantage provides a 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.

• Improving wholesaler efficiency • Identifying advisors who sell

certain products.

• Providing advisors with the right tools and training to match the

product with the consumer Contact

• Targeting product sales _{Larry Cohen +1 609 734 2048}_{lcohen@sbi-i.com} Madelyn Martin +1 630 230 0819 mmartin@sbi-i.com

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Sample Sales Plan with AA Inputs

GOAL: Increase sales in fixed income funds by 5%

What is the trend for fixed income products?

Action: Decide if fixed income products is the best use of marketing dollars.

What motivates advisors?

Action: Create a compensation plan that maximizes defined motivations

How can I maximize fixed income product sales? Action: Apply segmentation to advisors and target advisors with conservative investment styles that sell packaged products.

Find answers in: AA Inve s tm e nt Style Re port and

Se g m e ntation • Conservative • Value • Aggressive AA Ge ne ral Pre se ntation

AA Produ c t Com p osition Re port and Se g m e n tation • Broad Spectrum • Diversified • Limited o Banking focus o Securities focus o Packaged products AA M otivators Re port

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Advisor Advantage

Stakeholders

Market Research

Advisor Research

Recruiting / Retention • 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?

National Sales

Product Sales

Stakeholder Issues Benefits to Strategic Planning Stakeholders

• Increasing revenue/profitability 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. • Recruiting and retaining the best

talent

• Understanding advisor behaviors and attitudes

• Providing advisors with the right tools

Contact • Gaining insight into sales

channels For more information, please contact: • Getting ahead of the curve on

industry trends

• Targeting product sales

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Sample Strategic Plan with AA Inputs

GOAL: Increase Revenue by 5%

How do we retain advisors who have existing books of $x+? Action: Create a work

environment and compensation plan that maximizes def ined motivations. AA Ge ne ral Pre s e ntation AA M otivators Re port • Money • Helping people • Enjoying finance • Other incentives (i.e.

trips/gifts/ deferred comp). • Knowledge/ education Find answers in:

Where do we recruit successful advisors who have the specific experience and profiles we need?

Action: Recruit from targeted industries.

AA Ge ne ral Pre s e ntation Find answers in:

AA Job Historie s

Re port

What do my advisors look like?

Action: Apply segmentation to entire roster of all advisors and design a targeted recruiting plan.

Find answers in: AA Cus tom Se g m e ntation

Re port

How do I identify early adopters for a new product? Action: Apply segmentation to

firm’s advisors to identify early adopters of a specific product.

Find answers in: AA Cus tom Se g m e ntation

Re port

What are the current trends in client service relationships? Action: Evaluate trends in building

and maintaining client relationships and create an environment and

compensation plan that

AA Ge ne ral Pre s e ntation Find answers in:

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Advisor Advantage

Stakeholders

Advisor Research

Recruiting / Retention • 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? National Sales

Product Sales

Market Research

AStakeholder Issues Benefits to Market Research Stakeholders

• Profiling advisor behaviors and

attitudes Using data and analysis from _{competitive edge to market researchers, allowing them insight into}Advisor Advantage provides a 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.

• Sizing the market • Generating leads

• Gaining insight into sales channels

Contact • Getting ahead of the curve on

industry trends For more information, please contact: • Targeting product sales

• Identifying training opportunities

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Sample Research Plan with AA Inputs

GOAL: Study the annuities industry and identify market trends and

advisor trends.

What are the characteristics of advisors that sell annuities? Action: Size the advisor market and

project growth.

AA Annu itie s Se g m e n tation

What are the key indicators for advisors who don't sell annuities today but would be open to selling annuities?

Action: Profile each group identifying key characteristics for differentiation including demographics, types of clients and selling styles.

What are the attributes of advisors who do not sell annuities?

Action: Size the non-producing advisors and their potential for selling annuities. Apply the segmentation to current advisors.

AA Cus tom Se g m e ntation Re port AA Ann uitie s Se g m e ntation Re port AA An nuitie s Se g m e ntation

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Advisor Advantage

Stakeholders Recruiting / Retention

• 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? National Sales Product Sales Strategic Planning Market Research Advisor Research Stakeholder Issues Benefits to Advisor Research Stakeholders

• Profiling advisor behaviors and

attitudes Using data and analysis from _{competitive edge to market researchers, allowing them insight into}Advisor Advantage provides a 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.

• Shifting to a broader advisor channel model

• Providing advisors with a voice • Getting ahead of the curve on

industry trends _Contact

For more information, please contact: • Capitalizing on advisor lifestage

• Aligning with advisor business models

• Identifying training opportunities

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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.

Which advisors have a sincere objection to regulatory and compliance issues?

Action: Determine the size and

characteristics of these advisors.

AA Com plianc e Se g m e n tation

What are the attitudes and behaviors in common with these advisors?

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.

Find answers in: AA Com p lianc e Se g m e ntation Re port AA Com p lianc e Se g m e ntation