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Develop your skill setto maximise your client opportunities

Julian WellsDirector

Adviser Matrix

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Agenda

• The relationship - and the difference - between marketing and sales

• How marketing can help you focus your business efforts

• How to get more value from your existing clients and attract new ones

• Opening up new revenue streams

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The state of play• Sir James Crosby’s interim report into the

mortgage markets predicted the current turmoil in the mortgage market will see many intermediaries forced out of business

• Cost and resource management has never been more important in the intermediary market

• Advisers need to look at ways to diversify their business and maximise revenue opportunities

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Market Opportunities

• When asked how they wanted to purchase financial products– 5%of the general public preferred to purchase via the internet– 95% preferred face to face advice

• In 1991, there were 250,000 advisers, there are now around 40,000

• There is opportunity in the market• But how do you seize it?

Source:: Linea

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Sales vs Marketing

• Sales are what happen as a result of marketing

• Marketing is all about getting yourself in position to make a sale

• The right people, the right message, at the right time

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Advisers are not generally comfortablewith marketing their business

• How valuable would it be for you / your business to get assistance with generating new business without having to have a significant budget?

100.00%157TOTAL

12.70%20Don't know5

16.60%26No value4

24.20%38Fairly valuable3

22.30%35Very valuable2

24.20%38Extremely valuable1

NMG Group, May 2008

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Your ideal source of advice is other advisers

Which, if any, of the following would it be useful toget marketing related advice from?

NMG Group, May 2008

100.00%216TOTAL

23.60%51None / do not need advice6

2.30%5Other (please specify)5

15.70%34Marketing service providers (e.g.. Web experts, printers, designers)

4

14.80%32Marketing consultants3

20.40%44Lenders/providers2

23.10%50Other intermediaries1

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Case study - Protection

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Market Opportunities

• Each year, 600,000 people die– That’s 1,643 each day

• Each year, around 700,000 people suffer a heart attack, a stroke or cancer– That’s 1,917 each day

• At any one time, over 2 million people of working age will be off work for over 6 months through accident or illness

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Market Opportunities

• We tend to imagine those with money have less need for protection solutions, the reality is that this is far from the truth

• People become used to and even dependant on their standard of living and the one thing that binds us all together is that we all rely on a source of income to provide the things we need and want

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How marketing can help you focus your business efforts

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Winning new clients

• Many advisers are having to change their business models

• If you do this, you have to tell people• If the perception is that you are a mortgage

broker… you will get mortgage enquiries• Many adviser businesses have changed their

name to address this issue

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Other thoughts…

• Adverts– Do they have the right message?– Are they in the right place?

• Website– What is the focus?– If you visited your website, what would you think

of your business proposition?

• Put yourself in the shoes of your clients

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Winning new clients

• Look at how you source your leads• Are your referral relationships actually

delivering value to you– And are you getting the best prices you can

• Best eg – conveyancing

• Evaluate your whole proposition and don’t be afraid to redesign it– The market has changed!

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Contacting existing clients

• Review objectives

• Implementation:– Who will you target?– When will you call them?– How will you measure success?

• The purpose of a phone call is to make an appointment, NOT a sale over the phone

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Always remember…

Successful marketing is all about…• The right people• The right message• The right time

If they don’t fit all of the above, don’t call them

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If you do call them…Think about:• Why are you contacting this client? • Why should they want to meet with you?• What’s in it for them?

– Save them money?– Review changes in their circumstances?– Pick up on what you discussed last time?– Changing climate… making things a little tight for many

people … made people think about how they’d cope if their salary stopped coming in…?

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Other opportunities from existing clients

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Referrals

• What are the benefits of referrals?– Hot leads– Easy to appoint– Trust– Easy to sell to– Increased activity– Profitability– Best feedback you could receive…

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Referrals process

• A referral is a sale and to make a sale we have to follow a process. It needs a structure. For example if you just ask the client ‘Do you want to buy some life assurance ‘? The answer would probably be NO.

• If you follow the process for a fact find and presentation meeting and use your skills, then that same client is likely to say YES.

• Same client different approach different result!!

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4 Principles of Referrals

Preparation• Prepare them for the question from the start of the meeting (cover

at IDD) ie. my business works on a referral basis

• In the introduction there must be a mention of ‘How you build your business’ at this stage you are not going to ask for referrals all you want to do is to ‘sow the seed’

• Presenting Meeting: Referrals on the agenda, written or verbal. Best practise written

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4 Principles of Referrals

Barter• Tell the client how hard you will be working for them and in return

you’d hope they’d recommend you to a friend or colleague

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4 Principles of Referrals

Professional• Unless you provide a 5 star service to your clients you can not expect

referrals

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4 Principles of Referrals

Profile• Let the client know what type of referral you are looking for ie. Give

them examples of who could benefit– At the end of the Fact Find meeting, refer back to ‘How At the

end of the Presenting meeting ask for the Referral.– you build your business’ and ask for their help. Profile the type of

referral you are looking for. You don’t want a name right now but Prompting them for a referral at the next meeting.

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How much is a client worth?Mortgage

Proc FeeBrokerage Fee

Mortgage ProtectionGI

Family ProtectionLifeCI

PHI

PensionPersonal

Dormant PoliciesCompany – EmployeesLife Cover (Key Man)

SavingsISA’s

Bonds

RetirementInvestments

AnnuitiesEquity Release

IHT/CGT Planning

Over 20 Years

£??????

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Where to look for help

• Clubs and networks provide a lot of marketing support

• See what is available – there are an increasing number of sources of good, sound advice

• Look out for new ones being announced in the coming weeks and months

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Adviser Matrix

• Adviser Matrix is a free and independent service for brokers considering joining networks

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Closing thoughts

• 2008 has been a tough year of transition in the market

• 2009 will see the new landscape evolve• Position your business in a way that means

you can capitalise on the opportunities available

• Don’t be afraid to change!

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And never forget…

• The right people• The right message• The right time

This is what marketing is about……and it is also what drives sales

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Thank you

Julian WellsDirector

Adviser Matrix