consumer wealth & target markets highlighting opportunities in marketing tri-state fpa quarterly...

Consumer Wealth & Target Markets

Highlighting Opportunities in MarketingTri-State FPA

Quarterly ConferenceNovember 13, 2007

207.11.13 – Tri-State (Philadelphia) FPA © Tiburon Strategic Advisors, LLC™

Why are so many financial advisors so darn reactive regarding marketing? Is it cultural? Is it the beauty of existing client bases? Should it change?

Is wealth management a marketing or a sales game?

What are the benefits of target marketing? [revenues & costs]

Isn’t target marketing difficult? How do you create a specialty (or a series of specialties)?

A Discussion of Target Marketing


The Opportunity: Baby Boomers & their Likely Liquefaction

The Challenges…

– Increasing Competition

– Consumers’ Need for Broader Advice

The Huge Target Marketing Opportunity

Tiburon Conclusions & Suggestions

Outline


Consumer Investable Assets are Concentrated in a Small Share of the Population

Consumer Household Investable Assets

$7.0

36.8

$5.8

$3.0

$7.0

3.5

76.0

Households Investable Assets

<$100,000

$100,000 - $1 Million

$1 - $5 Million

$5 Million+(0.7 Million)

117 Million $22.8 Trillion

Source: 8/17/07 Wachovia Presentation (Kelly); 6/07 Fisher Investments Brochure (Federal Reserve Flow of Funds Report); 3/31/07 Federal Reserve Flow of Funds Report; 2/5/04 TD Waterhouse Presentation (Bradley) (Merrill Lynch; CEG); 1/22/04 McKinsey Quarterly; 12/03 Financial Planning; 3/03 Powell Johnson Newsletter; 5/22/02 Wachovia Presentation (Spectrem; McKinsey & Company); Tiburon Research & Analysis


More than Three-Quarters of Baby Boomers Over the Age of 55 Have Less Than $100,000 in Investable Assets…

Source: 2/3/05 New York Times; Tiburon Research & Analysis

Baby Boomers Over Age 55 by Investable Assets

<$100,00079%

>$100,00021%


$132.4

$184.7$174.9 $174.3

-$34.8

-$96.4-$82.3

Consumer Household Personal Savings($ Billions)

…Baby Boomers are Not Saving the Traditional Way…

Note: Household consumer personal savings refers to the difference between disposable personal income and personal consumption expendituresSource: 3/31/07 Federal Reserve Flow of Funds Report; Tiburon Research & Analysis

2001 2002 2003 2004

2005 2006 2007


… And Only 2% of Baby Boomers Will Receive an Inheritance of More than $100,000

Inheritance >$100,000

2%

Inheritance <$100,000

98%

Source: 2/04 Journal of Financial Planning; 8/12/01 US Bancorp Piper Jaffray Web Site (Gallup); 12/00 SunAmerica Brochure; 7/96 Commonwealth Club Newsletter; 2/19/96 US News & World Report; Tiburon Research & Analysis

Baby Boomers by Size of Inheritance


The Savings Crisis is Even Worse Because the Risk of Dying Too Young is Increasingly Being Replaced by the Risk of Living Too Long

Source: 11/03 Institutional Investor; 3/11/03 First Quadrant Presentation (Arnott); Tiburon Research & Analysis

Life Expectancy by Birth Year

6369 70 72 74 75 77 78 79 80

1940 1950 1960 1970 1980 1990 2000 2010 2020 2030


80.174.8

Women Men

And While the Average is 77-78, Lucky Women Have a Higher Life Expectancy Than Men

US Life Expectancy by Sex

Source: 12/9/05 San Francisco Chronicle (US Center For Disease Control); Tiburon Research & Analysis


The Issue is Even Greater Because More than Half of 65 Year Olds Will Reach Age 85 and Over One-Third Will Reach 90

Source: 12/11/06 Investment News; 8/12/01 US Bancorp Piper Jaffray Web Site; 8/12/01 Allstate Brochure; 12/00 SunAmerica Brochure; 7/22/96 Business Week; Tiburon Research & Analysis

100+6%

90-9418%

85-8920%

95-9911%

65-8445%

65 Year Old Person Life Expectancy


The Good News… Consumer Households Have Almost $23 Trillion of Investable Assets, $35 Trillion of Financial Assets, and $70 Trillion of Total Assets, Up Hugely Again this Year

Source: 6/07 Fisher Investments Brochure; 3/31/07 Federal Reserve Flow of Funds Report; 1/22/04 McKinsey Quarterly; 5/22/02 Wachovia Presentation (Doe) (Spectrem; McKinsey & Company); 5/9/02 Wachovia Presentation (Blythe); 5/9/02 Spectrem Presentation (Doe); 8/14/01 Wall Street Journal; 7/01 Registered Rep (Cerulli); 6/19/00 Investment News; 12/97 Federal Reserve Bank Survey; Tiburon Research & Analysis

Consumer Households Net Worth($ Trillions)

$69.6

$22.8

$56.3

$13.3

$12.2

$27.0$7.5

InvestableAssets

RetirementPlan Assets

PersonalAssets

Other IlliquidAssets

TotalHousehold

Assets

TotalHouseholdLiabilities

TotalHouseholdNet Worth


Hence, the Solution to the Perceived Savings Crisis is Baby Boomers’ Liquefaction, Including Retirement Plan Rollovers, and Small Business Sales

Source: 6/07 Fisher Investments Brochure (Federal Reserve Flow of Funds Report); 3/31/07 Federal Reserve Flow of Funds Report; 1/22/04 McKinsey Quarterly; 5/22/02 Wachovia Presentation (Spectrem; McKinsey & Company); 5/9/02 Wachovia Bank Wealth Management Presentation (Blythe); 5/9/02 Spectrem Presentation (Doe); 8/14/01 Wall Street Journal; 7/01 Registered Rep (Cerulli); 6/19/00 Investment News; Tiburon Research & Analysis

Consumer Households Net Worth($ Trillions)

$56.3

$22.8

$12.2

$27.0

$7.5

InvestableAssets

RetirementPlan Assets

PersonalAssets

Other IlliquidAssets

TotalHousehold

Assets



The Challenges…





Outline


Life and P&C Insurace Agents

(87,609)23%

Bank Brokers & Trust Officers

(82,729)22%

Independent Reps (82,306)

22%

Wirehouse, Regional, & Boutique

Brokers (92,648)23%

Partners at Fee-Only Financial Advisor

Firms (30,024)8%

Discount Broker & Mutual Fund

Company Reps (6,951)

2%

Financial Advisors By Market

Close to 400,000 Financial Advisors are in the US Market; the Independent Rep Channel is Quickly Catching the Captive Broker Channel in Numbers

Source: 7/25/05 Forbes; 6/05 Research; 2/21/05 Money Management; 2/04 Registered Representative; 11/24/03 Cerulli Edge; 2/9/00 Prima Capital Meeting (Watson); 1/00 Prima FA, CPA, & FO Interviews; 12/10/99 Prima Capital Conversation (McColl); Tiburon Research & Analysis


Wirehouse, Regional, & Boutique Brokers

$6.2 Trillion31%

Retail Banks & Bank Trust Departments

$5.4 Trillion27%

Discount Brokers & Mutual Fund

Companies Direct $3.1 Trillion

16%

Life and P&C Insurance

Companies $3.0 Trillion

15%

Fee-Only Financial Advisors $1.1 Trillion

6%

Independent Reps $1.0 Trillion

5%

Consumer Households Investable Assets by Market

The Brokerage Firms and Banks Still Have Most of the Assets…

Source: 3/02 Open Finance (Tower Group); 8/13/01 On Wall Street Web Site; 7/13/01 Cerulli Presentation (SIA); 11/6/00 Investment News (Cerulli Associates); 12/97 Securities Industry Yearbook; 12/97 S&P’s Securities Dealers of North America; 7/22/97 American Banker; 6/97 Financial Planning; 6/97 Dow Jones Investment Advisor; 5/12/97 Pensions & Investments; 4/12/97 American Banker; Tiburon Research & Analysis


But the Independent Financial Advisor Channels Have Been Outgrowing the Other Channels

Client Assets Annual Growth Rate by Market(1995 - 2006)

Source: 7/19/04 Federal Reserve Bulletin; 12/97 Securities Industry Yearbook; 7/22/97 American Banker; 5/12/97 Pensions & Investments; 3/97 Federal Reserve Bulletin; 12/96 ACLI Life Insurance Factbook; 11/95 Best’s Review; Tiburon Research & Analysis

18%

14%

11%9%

3%2%

Fee-OnlyFinancial Advisors

Independent Reps Discount Brokers& Mutual Funds

Direct

Wirehouses,Regional, &

Boutique Brokers

Retail Banks &Bank Trust

Officers

Life and P&CInsurance

Companies



The Challenges…





Outline


#1: Mutual Fund are the Dominant Investment Product…

Source: 3/05 ICI Web Site; 7/19/04 Barron’s; 4/04 Research (MMI); 12/15/03 Investment News (Cerulli); 7/03 Ticker; 5/27/02 Merrill Lynch Presentation (Cerulli) (Doe); 10/01 Investment Consulting News; 7/13/01 Cerulli Presentation (Strategic Insight) (Cerulli); 7/11/01 RunMoney Conversation (Jorgensen); 7/2/01 RunMoney Quarterly Report; 7/01 Financial Advisor; 6/25/01 Investment News; 4/01 AIM Brochure (Cerulli); Tiburon Research & Analysis

Leading Investment ProductsAssets Under Management

($ Billions)

$460 $720

$1,743 $1,800 $1,900

$3,000

$10,800

ExchangeTradedFunds

SeparatelyManagedAccounts

VentureCapital &PrivateEquity

Annuities HedgeFunds

LifeInsurance

(Cash Value)

MutualFunds


Commissionable Mutual Funds

39%

Commissionable Variable & Fixed

Annuities22%

No-Load Mutual Funds & Other

Products in Fee-Accounts

16%

Individual Securities11%

Fixed & Variable Life Insurance

7%

Other5%

The Fast Growing Independent Rep Market Has Long Relied Heavily on Mutual Funds…

Source: 5/03 Independent Rep Best Practices Survey; Tiburon Research & Analysis

Investment Products UtilizationAcross All Independent Reps


As Has the Even Fastest Growing Fee-Only Financial Advisors (RIAs) Market…

Investment Products UtilizationAcross All Fee-Only Financial Advisors

No-Load Mutual Funds in Fee-

Accounts61%

Individual Securities in Fee-

Accounts19%

Other Investment Products in Fee-

Accounts5%

Commissionable Investment Products

15%

Source: 5/03 Fee-Only Financial Advisor Best Practices Survey; Tiburon Research & Analysis


#2: Packaged Fee-Accounts Assets Have Grown Substantially Over the Past Eight Years to Over $1.5 Trillion

Source: 8/23/05 Fund Fire; 8/12/05 Mutual Fund Daily; 5/25/04 Money Management Executive (FRC); 4/04 Research (MMI); 2/10/04 MMI Press Release; 12/15/03 Investment News (Cerulli); 12/15/03 FRA Conference Brochure; 3/27/03 Wealth Management Letter; 3/10/03 American Banker; 9/30/02 IIR Conference Brochure (Cerulli); 9/23/02 Investment News; 8/7/02 Wealth Management Letter; 6/02 Ticker; Tiburon Research & Analysis

Packaged Fee-Account Assets($ Billions)

$82 $115 $117 $120$180

$235$356

$452

$662$769 $800

$927

$1,081

$1,208

$1,500

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006


The Movement Though is to Unified Managed Accounts and Broker Wrap Accounts

Source: 5/27/02 Merrill Lynch Presentation (Doe) (Cerulli); 12/13/00 HD Vest Meeting (Vest); 11/00 HD Vest Presentation (Pinion); 9/18/00 Northwestern Mutual Presentation (Mendelson); Tiburon Research & Analysis

Eight Core Types of Packaged Fee-Accounts

Eight Core Typesof Packaged

Fee-Accounts

BrokerWrap

Accounts

ETF WrapAccounts

Fee-BasedBrokerageAccounts

Multiple Style

Portfolios

UnifiedManagedAccounts

MutualFundWrap

Accounts

AnnuityWrap

Accounts

SeparatelyManaged Accounts


#3: More Broadly… The Investments Process is Being Polarized with Twin Growth Patterns in Both Market-Linked Products and Alternative Investments

Source: Tiburon Research & Analysis

Polarization of Investments Process

Polarization

Market-Linked Products

Alternative Investments

Indexed Separate Accounts

Exchange Traded Funds

Index MutualFunds

Hedge Funds

Other Alternative

InvestmentsReal Estate

Venture Capital & Private Equity


Exchange Traded Fund Assets Have Experienced Uninterrupted Growth Since 1993, Reaching $460 Billion in 2007

Source: 1/8/07 Investment News (SSGA); 1/23/06 Ignites Email (ICI); 1/18/06 Dow Jones Email (Ryan); 12/19/05 Rydex Investments Brochure (ICI); 11/30/05 ICI Web Site;11/9/05 Morgan Stanley Analyst Report; 10/24/05 Investment News; 10/05 Research; 9/12/05 New Millennium Advisors Presentation (Carty) (ICI); 8/29/05 Investment News (ICI); 8/05 Morgan Stanley Analyst Report (Bloomberg); 7/12/05 IIR Conference Brochure; Tiburon Research & Analysis

Exchange Traded Fund Assets($ Billions)

$1 $7$20

$36

$70$83

$102

$151

$226

$290

$407

$460

1993 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007


Hedge Funds Assets Have Also Grown Significantly to Almost $2 Trillion

Hedge Fund Assets($ Billions)

Source: 3/21/07 American Banker Online (Hedge Fund Net) ; 3/19/07 Investment News; 3/6/06 Business Week (Hedge Fund Research); 12/5/05 Money Management Executive (Hedge Fund Research); 10/15/05 Financial Times; 6/8/05 Wall Street Journal; 1/5/05 Wall Street Journal (Hennessee); 9/2/04 Financial Times; 5/24/04 Forbes (Hedge Fund Research); 3/29/04 Barron’s (Tass); 3/04 Tremont Presentation (Schulman); Tiburon Research & Analysis

$55

$435$500

$600

$750

$980

$1,530

$1,900

$200

1990 1995 2000 2001 2002 2003 2004 2005 2006


#4: But Health Care & Retirement Income are Becoming the Keys for the Vast Majority of Consumers

Source: 4/5/07 Raymond James Email (Stolz); 5/5/04 NFP Presentation (Montgomery); 2/10/04 SEI Email (Smith); 1/7/04 SEI Conversation (Smith); 9/23/03 SEI Presentation (Smith); Tiburon Research & Analysis

Baby Boomer Financial Phases of Life

Estate Planning & Charitable

Giving Distribution

Years

Early Accumulation & Protection Years

Peak Accumulation &

Protection Years


Giving Planning Years

• 30s-40s

• Marriage & children

• Early earnings years

• Term life insurance

• Disability income insurance

• 50s-60s

• Aging parents & wealth transfer (received)

• Retirement & liquefaction (e.g., IRA rollovers, business sales, stock options, & sales of homes)

• Retirement income challenge (e.g., index annuities)

• 80s-90s

• Death of spouse• Estate planning

& charitable giving (execution)

Approximate Ages

Key Life Events

Liquefaction, Health Care, &

Retirement Income

Challenge Years

• 50s

• Peak earnings & savings (e.g., variable annuities)

• Long-term care insurance

• Vacation homes• Divorces• Children's

college• Children’s

marriages & grandchildren

• 60s-70s

• Estate planning & charitable giving (planning)


Will Not Need Nursing Home

Care52%

Will Need Nursing Home

Care48%

Individuals Over Age 65 by Need for Nursing Home Care

Nearly Half of Individuals Over Age 65 Will Spend Time in a Nursing Home

Source: 10/11/99 Wall Street Journal (Gallup); Tiburon Research & Analysis


Nearly Half of Consumers Fear that they Will Outlive their Savings, Creating a Large Potential for Retirement Income Products

Fear They Will Outlive Their

Savings48%

Feel Their Savings Will Be

Sufficient52%

Consumers by Propensity to be Concerned About Retirement Savings

Source: 2/9/04 American Banker (American Bankers Insurance Association); Tiburon Research & Analysis


#5: For the More Affluent, Estate Planning & Charitable Giving are Two of the Key Wealth Management Services

Source: 4/5/07 Raymond James Email (Stolz); 5/5/04 NFP Presentation (Montgomery); 2/10/04 SEI Email (Smith); 1/7/04 SEI Conversation (Smith); 9/23/03 SEI Presentation (Smith); Tiburon Research & Analysis

Baby Boomer Financial Phases of Life


Giving Distribution

Years

Early Accumulation & Protection Years

Peak Accumulation &

Protection Years


Giving Planning Years

• 30s-40s

• Marriage & children

• Early earnings years

• Term life insurance

• Disability income insurance

• 50s-60s

• Aging parents & wealth transfer (received)

• Retirement & liquefaction (e.g., IRA rollovers, business sales, stock options, & sales of homes)

• Retirement income challenge (e.g., index annuities)

• 80s-90s

• Death of spouse• Estate planning

& charitable giving (execution)

Approximate Ages

Key Life Events

Liquefaction & Health Care &

Retirement Income

Challenge Years

• 50s

• Peak earnings & savings (e.g., variable annuities)

• Long-term care insurance

• Vacation homes• Divorces• Children's

college• Children’s

marriages & grandchildren

• 60s-70s

• Estate planning & charitable giving (planning)


In the Affluent Market, Life Insurance May Play an Increasingly Important Role; Almost Half of Consumer Households Say that They Need More Life Insurance

Consumer Households By Perceived Need for Life Insurance Coverage

Source: 8/15/05 Investment News (Hayden Financial); Tiburon Research & Analysis


And While It Seems to Be Basic Financial Planning, Over Half of All Consumers Have Not Created a Will…

Source: 1/2/05 New York Times (FindLaw.Com); 1/05 Research (Lawyer.Com); 12/20/04 Wall Street Journal (Martindale-Hubbell); 11/5/03 Wall Street Journal; Tiburon Research & Analysis

Consumers by Will Creation

Have Not Created a

Will58%

Have Created a

Will42%


And Similarly, Three-Quarters of US Households Also Want to Learn More About Charitable Giving Strategies

Source: 11/01 Financial Advisor (Prince & Associates); Tiburon Research & Analysis

Charitable Contributorsby Interest in Charitable Giving Strategies



The Challenges…





Outline


There is an Opportunity for Financial Advisors to Market! The Potential is Huge! Most Financial Advisors Invest Limited Time in Marketing…

Note: One source indicated that financial advisors of all sizes list marketing as the largest single problem facing their businessesSource: 1/03 Journal of Financial Planning; 12/7/02 Bank of America Conversation (Klein); 11/8/02 EnvestnetPMC Conversation (Yanari); 10/02 Financial

Advisor; 9/98 Fidelity Investments Financial Advisor Research; 9/98 Cerulli Associates Research; Tiburon Research & Analysis

Financial Advisors’ Weekly Investment of Hours in Marketing

Zero Hours/Week

48%

1-5 Hours/Week37%

>5 Hours/Week15%


$30

$40

$50

2005 2006 2007

Fisher Investment Private Client Group Direct Mail & Web Advertising Expenditures

($ Millions)

Need Perspective?... Fisher Investments’ Private Client Group Spends $50 Million Per Year on Direct Mail and Web Advertising

Source: 7/26/07 Fisher Investments Meeting (Ornani); Tiburon Research & Analysis


Fisher Investments Private Client GroupAssets Under Management

By Propensity to Stay at Fisher Investments

#1: Client Retention is Key; For Instance, Fisher Investments’ Private Client Group Retains Nearly 100% of its Client Assets Each Year, Up in 2007

Source: 7/26/07 Fisher Investments Meeting (Ornani); 7/18/07 Fisher Investments Email (Ornani); 7/15/07 Bob Veres Newsletter; Tiburon Research & Analysis

95.0% 96.5%

3.5%5.0%

2006 2007

Retained

Lost


#2: As Clients Liquefy, Financial Advisors Need to Beat the Competition to Consolidate Client Accounts…

Source: 10/05 Research; 2/5/04 TD Waterhouse Presentation (Bradley) (Merrill Lynch; CEG); Tiburon Research & Analysis

Financial Advisor Relationships by Investable Assets

2.9

4.5

5.7

$1 Million - $5 Million $5 Million - $10 Million More Than $10 Million


New Assets from Existing Clients

20%

New Clients80%

Fisher Investments Private Client GroupNew Assets by Source

For Instance, Fisher Investments’ Private Client Group Sources Almost One-Quarter of its New Assets from Existing Clients

Source: 7/26/07 Fisher Investments Meeting (Ornani); Tiburon Research & Analysis


#3: Client Referrals Present a Huge Opportunity! Almost All Financial Advisors Could Get More Proactive on Client Referrals…

Passive Client

Referrals43%

Proactive Client

Referrals15%

CPA, Attorney, &

Broker Referrals

22%

Seminars & Other

Proactive Marketing Methods

20%

Source: 1/9/04 RW Baird Advisor Conversation (Filicky-Peneski); 1/8/04 RW Baird Advisor Conversation (Busey); 1/8/04 RW Baird Advisor Conversation (Michels); 1/8/04 RW Baird Advisor Conversation (Garrett); 1/8/04 RW Baird Advisor Conversation (Ater); 1/7/04 RW Baird Advisor Conversation (DeFrance); 1/7/04 RW Baird Advisor Conversation (Cruse); 1/7/04 RW Baird Advisor Conversation (Zeidler); 1/7/04 RW Baird Advisor Conversation (Carter); Tiburon Research & Analysis

Marketing Methods Generating New Client AssetsAcross All Full-Service Brokers


Passive Client Referrals

36%

Proactive Client Referrals

20%

Seminars8%

Other Proactive Marketing Methods

26%

Networking10%

… As Do Independent Reps…

Source: 5/03 Independent Rep Best Practices Survey; Tiburon Research & Analysis

Marketing Methods Generating New Client AssetsAcross All Independent Reps


… And Fee-Only Financial Advisors (RIAs)

Marketing Methods Generating New Client AssetsAcross All Fee-Only Financial Advisors

Passive Client

Referrals43%

Proactive Client

Referrals11%

CPA, Attorney, &

Broker Referrals

14%

Seminars5%

Other Proactive Marketing Methods

27%

Source: 5/03 Fee-Only Financial Advisor Best Practices Survey; Tiburon Research & Analysis


#4: There are Three Distinct Benefits of Segment Marketing, All of Which are Frequently Overlooked

Source: 3/03 Financial Planning; 2/03 On Wall Street; 2/03 Financial Planning; 1/03 On Wall Street; 10/02 Financial Advisor; Tiburon Research & Analysis

Segment Marketing Benefits

Decreased Competition & Better Close Rate

• Competition decreases as advisors establish themselves as experts in a particular niche

• Segment marketers win every time

Lower Cost to Serve Clients

• Isn’t serving the incremental client who looks alike easier?

Increased Flow of Referrals

• Target marketing will lead to improved prospecting results due to an increase in real and perceived value

• One’s reputation spreads much faster in niche markets than in broad markets

• Having a niche will positively affect public relations

• Able to better use time and money


First Generation Money

80%

Inherited Money20%

Almost All High Net Worth Households are First Generation Wealthy, With Money Created Through Businesses or Corporate Stock

Sources of Wealth Amongst High Net Worth Households

Note: On this chart, high net worth households describe those with $1 million + net worthSource: 12/8/03 Money Management Executive; 9/23/03 SEI Presentation (Smith); Tiburon Research & Analysis


Private Business Owners, Corporate Executives, and Professional Occupations are the Key Sources of Wealth

Source: 8/14/01 American Banker; 8/01 Money; 3/9/00 US Trust Web Site; Tiburon Research & Analysis

Affluent Households by Occupational Segment

Professional Occupations

25%

Corporate Employment

28%

Other Segments8%

Private Businesses

39%


12%26%

88%74%

US Population $1 Million Investable AssetHouseholds

Private Business

Owners

Other Sources of Employment

Source: 1/07 Money (CNN Money); Tiburon Research & Analysis

US Population & Affluent HouseholdsBy Employment Status

Private Business Owners are an Attractive Segment, Accounting for Over One Quarter of Affluent Households


Professional Occupations… There are Several Speaking Opportunities within a Health Care Niche

Source: 11/93 Physicians Medical Seminars; Tiburon Research & Analysis

Health Care Speaking Opportunities

Contact Continuing

Medical Education

Office

Speaking Opportunities

Professional Societies Hospitals

Other Professional Societies

American Medical Association

General Staff Meetings

Department Meetings

Contact local or state society

Contact hospital librarian

Contact local Society


Source: 1/22/04 Hanson McClain Conversation (Neeley); 1/21/04 Hanson McClain Email (Neeley); 1/8/04 Hanson McClain Web Site; 1/7/04 Hanson McClain Conversation (Neeley); Tiburon Research & Analysis

Sacramento-Based Hanson McClain Serves Telephone Company Retirees (Not a High Net Worth Market!)…

• About half of the firm’s 2,000 clients are Pacific Bell retirees– Believes they have captured about 70% market

share• Capitalized on announced telephone company

layoffs– Contacted human resources director– Hired high school kids to put fliers on

windshields– Mailed letters to employees– Faxed fliers to company departments– Placed advertisements in company newsletters– Sponsored lunches, brought coffee &

doughnuts, attended retirement parties, etc.

Comments


Source: 11/17/03 Cleary Gull Web Site; Tiburon Research & Analysis

…Milwaukee-Based Cleary Gull Has a Customized Program for Pilots…

• Introduction uses pilot terminology such as engineer, safety, stay on course, etc.

• Custom seminars for pilots of leading airlines• Services listed for pilots including AA Super Saver

401k Asset Allocation and UAL DAP Asset Allocation• Specialized questionnaires for pilots from American,

United, Delta, and others• Several ex-pilots on staff for pilot relationships

Comments


Source: 2/6/02 Ron Blue Email (Guffin); Tiburon Research & Analysis

…And Atlanta-Based Ron Blue & Company Approaches Christian Clients From a Unique Perspective

Ron Blue Client Approach

• God owns it all ~ we are Stewards• Quote biblical principals for each

aspect of the financial planning process

• Ask “how much is enough?”• Emphasize eternal perspective• Emphasize charitable giving • “Wealth” transference including

financial, social and spiritual capital

Christian Clients

• Goal setting• Net worth calculations• Income tax projections• Estate & will review• Cash flow projections– Spend less than you earn– Avoid the use of debt

• Investment overview• Education analysis• Charitable giving strategies• Retirement analysis• Insurance analysis

All Clients


Magazines (so many ways…)

Conferences (again, so many ways…)

Reaching Those Target Markets – Two Words

Reaching those Target Markets


In Other Words, Once a Niche is Established, Marketing Flows Easily…

Hanson McClain Financial Advisor sWeekly Investment of Hours in Marketing

Zero Hours/Week

0%1-5 Hours/Week

20%

>5 Hours/Week80%

Source: 1/16/04 Securities America Advisor Conversation (Anderson); 1/16/04 Securities America Advisor Conversation (Anderson); 1/13/04 Securities America Advisor Conversation (Simmons); 1/12/04 Securities America Advisor Conversation (Nentwich); 1/13/04 Securities America Advisor Conversation (Crandell); Tiburon Research & Analysis



The Challenges…





Outline


Tiburon Summary Conclusions…


Tiburon Summary Conclusions

The Opportunity The Challenges

Increased Competition• 400,000 financial

advisors• Increasingly similar

offers

Broadening Needs• Mutual funds• Fee-accounts• Polarization• Health care• Retirement income• Estate planning• Charitable giving

Marketing

• Client retention is #1• Need to win the

consolidation war• Need to proactively

seek client referrals• The ultimate new

asset win… Target marketing- Increased number

of referrals- Increased close

rate- Decreased cost to

serve

Savings Crisis• No savings• No savings rate• Long live

expectancies

Liquefaction• Wow… • IRA rollovers are

already the #1 source of assets for all three core markets


Tapping Into Tiburon Research; Three Free Follow-Ups…


Free Tiburon Research

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Tiburon Strategic Advisors

• Focus on corporate-level strategy- Serve senior executives only at financial

services companies- Key services: market seminars, market

research, & strategy consulting - Served almost 300 corporate clients and

completed almost 1,000 projects since 1998- Host semi-annual CEO Summits, offer free

weekly research releases, and offer free business benchmarking tools for all types of advisors

• Chip Roame background- McKinsey & Company; Charles Schwab &

Company; Tiburon since 1998- Email address: [email protected]

Comments

consumer wealth & target markets highlighting opportunities in marketing tri-state fpa quarterly...

Documents

benefits of target marketing

consumer wealth target

financial advisors

consumer investable

wealth management

broader advice

likely liquefaction

competition consumers