distribution excellence: sustainable strategies for long term success and market share
DESCRIPTION
Distribution Excellence: Sustainable Strategies for Long Term Success and Market Share. John King-Beckles, CLU, FLMI Associate Vice President Firm Relations Nationwide Insurance. Presenter John King Beckles, AVP Firm Relations. Strategic Considerations. Key Strategic Considerations - PowerPoint PPT PresentationTRANSCRIPT
Distribution Excellence:
Sustainable Strategies for Long Term Success and Market Share
Presenter John King Beckles, AVP Firm Relations
John King-Beckles, CLU, FLMI Associate Vice PresidentFirm RelationsNationwide Insurance
Strategic Considerations
Key Strategic Considerations
are Fundamental Your Distribution Model
Captive Agency
Non-Affiliated
Relationship Management
Competitive Product Development/(secret sauce)Shelf space
Attracting and Retaining Top Producers/Advisors
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Distribution Model
Captive Agency
Average Agency Characteristics*50 Agents19 RecruitsThree full-time second-line ManagersSeven administrative staffProduction of $2.1 M (FYCs)55% of FYCs from Life and Health Sales 95% of FYCs earned by full-time agents
Relationship Building
Multi-Tasking Abilities
*Agency Expense and Performance Study (2007) LIMRA International Inc.
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Distribution Model
Non-Affiliated
Develop Strategic Selling AlliancesWhich firms?
Depend on “Alliance Partners” Distribution ProcessGeographical reach
Wholesaling Model Critical Ability to reach key advisors
Intense Competition for Shelf SpaceBrand strength awareness
Producers/Advisors Employees of Broker/Dealer
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Relationship Management
Three Key Components*
1. Develop Industry and competitive knowledge
2. Excellent product knowledge and budget management skills
3. Teamwork and leadership skills
*Kasina-Excellence in Distribution 2010 A Territory Management Skills
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Relationship Management
Key Attributes
Prior Experience – What Kind?
Learn Quickly
Learn how to handle difficult situations
Adventurous
Passionate
Positive
Friendly
“Sparkling”
Global View of the business
Network Orchestrator
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Relationship Management
Relationship Challenges*-continueCommon Concerns expressed by Business Partners
We don’t want to be “romanced”They should focus on being useful to us, not becoming our friends
They are only interested in sales, not in solving our problems
Firms are demanding more from us, not lessThey want to think we’re there when they need usWe have to be able to deliver the service and efficiency the firm expectsSupply solutions and “teams” to solve problems
*Key Acct Management – The Trusted Advisor-Maister
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Relationship Management
Relationship Challenges*Common Concerns expressed by Business Partners
Make an impact on our business; don’t just be visible
Spend more time helping us think and helping us develop strategies
Lead our thinking. Tell us what our business is going to look like 5 or 10 yrs from now
*Key Acct Management – The Trusted Advisor-Maister
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Competitive Product Development
Shelf Space – Vital
Product Competitiveness
Position on Broker/Dealer shelf
Versatility of Product design
Easy to sell
*Horsesmouth and Kasina-FA vision
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Competitive Product Development
More conservative Product Offerings
Greater Product Diversity
Impact of legacy blocks/issues
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*Horsesmouth and Kasina-FA vision
Attracting and Retaining Top Producers and Advisors
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300,000
250,000
200,000
* The Cerulli Edge Advisor Edition 2 Q 2008
Attracting and Retaining Top Producers and Advisors
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* The Cerulli Edge Advisor Edition 2Q 2008
Attracting and Retaining Top Producers and Advisors
Key Implications*
The US advisor force is aging
Undergraduate Financial Planning Programs are producing a pipeline of new talent
Traditional channels are having a smaller percentage of new entrance
*The Cerulli Edge Advisor Edition 2Q 2008
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