Professional Planner

Wealth Market Segmentation

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the Customer Champion

What got Us Here Won’t

Get Us There . . . .

July 4, 2012

Advisers are Moving Toward the

Customer - But Without a Roadmap

Consumer, regulatory and industry trends pulling advice market toward customer

Most advisers lack the structured insight needed to adapt commercial activity

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Customer Insight is Needed to Answer

Some Key Business Strategy

Questions

1. The best clients for their business - keep / sell / acquire

2. How to reach them

3. How to capture their business

4. How to retain and grow their business

5. What it takes to stimulate referrals

6. Hard numbers to drive plans / build business cases

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This Study Seeks to Address the

Adviser’s Need for Structured Insight

Large scale quant study into consumer advice motivations

Designed & run by the Customer Champion

Sponsored by Professional Planner

Accessible through syndication

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+ =

` `

A Large and Thorough Study of

Wealth Customers & Motivations

May 16 - 22, 2012

1500 respondents / 10% oversample

Online panel / online self completion

Weight by region & demo.

All advice / all wealth

25-69 yrs/ main / joint decision maker

Paid for / willing to pay for advice

Mass & mass affluent (top 40% HH)

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Attitudes to advice/ wealth

Personality styles

Overall segmentation

Drill down for mass / mass affluent

Demographics

Product, services & channels

Reasons

Intentions & preferences

Field-work / Approach Scope & Sample

Segmentation Profiles

Extract

Wealth

Drivers

` `

1. Wealth Pack - Includes

Up to 5 x Presentations of findings

1 x Strategy Workshop - run by TCC

Presentation in soft copy

Detailed findings in soft copy

Data cube available - negotiable

2. Dealer Group Pack - Includes

2 Presentations of findings

Presentation in soft copy

Key tables in soft copy

Available Through Syndication to

Improve Accessibility

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Packages cater for a range of needs:

From those who just need the findings

.. to those who want to drill into detail

.. who want ongoing access to tools

.. or consulting to apply to their business

3. Practice Extentions - Options

Study to segment current customers

(online research x ~ 100 customers).

Ongoing subscription to profile tool to

screen prospects online.

Strategy consulting - see following

4. Strategy Consulting - see following page

` `

1. Customer Strategy

What segments are most appealing

for your business?

Can you / how can you connect your

business DNA to their needs?

How to refine your offering to fit?

2. Customer Experience Audit

Are you currently meeting needs?

Where are the strengths / gaps?

What are the moments of truth?

What are the priority areas?

3. Experience Design

For each targeted customer segment

What is the desired brand experience?

How do service, communications &

product combine to deliver this?

Design step by step “journey” per offer

4. Communications Planning

What does target customer expect? Frequency / detail / medium

Develop programme by segment.

Consider transactional & retainer.

Consider digital for cost /preference.

Strategy Consulting Extentions

To Apply Learning to Your Business

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` ` the Customer Champion

the Customer Champion provides Business Analysis, Strategy Consulting & Change Leadership to help bring the customer into your business.

Truly successful consumer businesses are focused on building relationships. They do this by choosing a target customer, serving that customer better than competitors, being consistent over time & touch-points & by reinforcing their brand in all interaction.

the Customer Champion can help your business become a customer benchmark just like these.

Advice Marketing Offering

Segmentation - insight on how customers group, where opportunity markets are & how to serve them.

Customer Strategy - see details on following page.

Adviser Digital Work-shop - a simple to use integrated suite of tools to help advisers manage customer marketing digitally.

Online solutions - websites, social sites, video, calculators and other digital modules ready to adapt for your business.

Advice marketing team - experts in marketing campaigns, web design, events & PR - with deep wealth experience

the Advice Champion

Consumer, regulatory and industry trends are pulling financial

advisers toward their customer. Most advice businesses are

up for the journey, but lack a roadmap and the scale to tackle

the marketing task. They want help defining a customer

strategy and becoming digital marketers.

the Advice Champion is our answer - a specialised consulting

practice providing the insight, tools and team to support dealer

groups and their advisers in their quest to restructure their

business with the customer at the centre.

We Help Our Clients Put the Customer

at the Heart of Their Business

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` `

Scott Graham - Founder and Principal

Scott is one of Australia’s senior consumer

business leaders, with broad experience across

cultures and product & service categories. Scott

has worked at Coca Cola, Ford, Ogilvy & Mather

and National Australia Bank, including 12 years in

global & regional marketing, strategy and general management.

Today Scott leads “The Customer Champion”, in helping client

companies put the customer at the heart of their businesses.

A focus is helping financial advisers re-orient themselves to their

customer in preparation for FOFA.

Roger Harris - Quantitative Research

Roger has over 20 years of market research

experience including positions as National

Director IPSOS Insight and Director Research &

Business Strategy at IPSOS Insight. Roger

combines advanced analysis and design skills &

commercial awareness to deliver clear strategic solutions. Roger

has extensive experience in segmentation across a range of

categories. Examples include: wealth consumers, financial

advisers, dairy, hair care, clothes & technology (published in Digital

Nation). Roger consults to the Customer Champion.

Sonia Bijelic - Marketing Consultancy

Sonia has 20 years marketing experience

culminating in senior roles across a diverse range

of leading brands including Disney, ANZ, Telstra,

GE Money & Brown Bros Winery. Sonia has

broad skills – from research, segmentation and

strategy…through to media & promotion… and

can apply a holistic marketing approach to any situation. Her

experience spans B2B and B2C; consumer goods and services and

includes internet, packaged goods, entertainment and financial

services. Sonia consults to the Customer Champion

James Ward - Strategic Analytics

James has over 20 years experience in

consulting, having built his own business, Forward

Media & appearing on the BRW Fast-100. James

brings powerful best practice approaches to

business optimisation using consumer, logistical

and competitor data, and has the experience to

implement programs which drive new insight, create business value

and deliver gains in financial performance James is quoted in

Australia’s most popular MBA text, holds an MSC and is a Peer of

the Australian Council of the Arts.

The Customer Champion Team

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To purchase this study or to discuss a consulting engagement contact:

Scott Graham

Ph: 0431 462 588

email: scott@thecustomerchampion.com.au

Web: http://www.thecustomerchampion.com.au/

Attachment

Overview of Presentation Pack

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Presentation of Findings - Content

1. Study overview

2. Planner Customers - who are the current customers & what are they looking for?

3. Prospect Universe - where is the opportunity for planners?

4. The Segmentation - how do customer’s group by motivation?

5. Segments x Prospect - which segments offer the greatest upside?

6. Segments x Purchase cycle - what do they want at each step in the cycle?

7. Summary of findings & implications

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Sample Slides

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NB Illustrative only -

contain dummy data

` `

25% 25% 25% 25% 25%

Planner Accountant Broker Priv Banker Gen advice

Australians are Willing to Pay for Advice

& Favour Planners & Accountants

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Most Australians will seek advice

Half of the potential market is advised

Planners and accountants dominant y%

x%

Not open

Open to pay

Currently advised - Share of Relationships Heavy overlap in experience…

xx% of planner

clients have had

An Accountant

Advice Status Population

(Ever Advised)

20%

20%

20%

20%

Priority /Private Banker

Stock Broker

Accountant

Financial planner

Dummy data

25

50

25

Intend to

Advised

Previously

` `

Other

Hear from time to time

Hear from them regularly

Paying an ongoing fee

Would go back to them

When Relationships “End” it’s Not

Always Through Dissatisfaction

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Why not current with planner

Lapsed Customer Intent To Re-engage Many “Current Customers” had no recent meeting

XX% go because of poor experience

But many others will return

XX are transactional “need passed”

YY incidental - “moved”

Communication = relationship for some

Other reason

Never heard from them

Poor Experience - other

Incidental

Need Passed

Comms

Trans. Poor Exp Need Passed Moved

Definitely / Probably Will

Dummy

data

Dummy

data

Dummy Data

` `

Clear Message on Fees & Service

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What expect to pay

PlanRevise Retm'tRevise Spec need

Expectations vary by need

Frequency of updates How to calculate

As a % of

invest

Set cost

per hour

Flat fee Some

other way

Dont know

Weekly Monthly Q'ly 6 mthly Annual Less often

Dummy Data

Prospect Mapping Highlights

Opportunity Areas for Priority Setting

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Never paid

Open to Advice

May

switch

planner

May cross

channelCurrently

see

Ever paid

adviser

Other

channels

ADVICE PROSPECT UNIVERSE (000's)

Stopped

seeing

May

engage May

return to

planner

Prospects

Data Removed

Attitudes Follow Two Dimensions X & Y

- Six Segments Emerge

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Segment 5 Segment 2

Segment 1

Segment 3

Segment 4

Segment 6

Circle shows size & position of segment

Bar shows net worth of each segment

a

Data Removed

(Segment 1)

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Enjoy idea of making big returns but...

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxx

Not really interested in advice

Attitudes Demographics & Personality

Youngest segment (<40)

xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Average income and lower Net Worth

xxxxxxxxxxxxxxxxxxxxxxxxxxx

• Disagreeable, not loyal, disorganised,

not practical, live in now

Under Index on all - especially

shares, mgd funds & Super

Less likely to have Income

protection (69) and TPD (53)

Product - $350k (90) Advice Acquisition & Servicing

25% have ever seen a

Financial Planner

25% currently have one

45% intend to see a planner

in the next 5 yrs

Low cost, location, bank based,

Someone you get on well with

XXXXXXXXXXXXXXXXXXX

Accepts remote contact

Prefers specific issue advice

over comprehensive plan

16% of

Population

10% of Net Worth

Net worth $500k (77)

HH Income $100k

(94)

Age

NB Dummy Data

Most Customer Opportunity Is In

Segments Where Planners Don’t Play

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Segment 1

Segment 2

Segment 3

Segment 4

Segment 5

Segment 6

Consider Planner Will stay with planner Won't engageCustomers (000’s)

XX

XXX

XXX

XXX

XXX

XXX

Current Planner

Segments

NB Dummy Data

Facts On The Online Research

In order to get 1500 successful responses to a 25 minute questionnaire:

We sent 45,638 email and 29,146 reminders.

Total click throughs was 6889 (1583 completes, 2237 screened, 2526 over quota)

Incentive was entry to our $5000 sweepstakes

Average panel respondents successfully complete less than 6 surveys per year.

Panel is ‘by invitation only’; recruited primarily offline (70%+ offline sources)

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