put your business where your brand is -...

1FOR FINANCIAL INTERMEDIARY USE ONLY.

NOT FOR PUBLIC DISTRIBUTION.

Put Your Business Where Your Brand IsImprove business by improving your client experience

Jim Ward

Managing Director, West Region

Independent Advisor Solutions by SEI

Vik Khasat

[email protected]



Independent Advisor Solutions by SEI

Our Experience in Working with Advisors

Sales & Marketing

Business Planning

Operations

Client Service

Transition

Phase

Efficiency

Phase

Growth

Phase

Advisor

Experience

Industry

Experience &

Resources

Advisor Business

Phases



SEI’s Practice Management Insights

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Follow us for engaging articles for advisors on marketing, client events,

segmentation, and much more! Also, guest bloggers are featured with industry

insight and new ideas.

Blog: www.seic.com/practicallyspeaking

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› Allie Carey, Client Experience - @SEIAllieC

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Agenda

› An assessment of today’s market

› Marketing - A process, a strategy...

› Sales - Acquiring a growing set of “must have” skills

› Onboarding - The foundation of long-term loyal relationships



Assessing Markets Today

Source: Winning Under Pressure, Exhbit 2, Morgan Stanley Research, Oliver Wynman, Blue Paper

+6%

+4%

+3%

+13%

+9%

+8%

AUM Revenue Cost Base

2011-16 annualized growth rate % 2017 annualized growth rate%

Costs have not been contained,

implying margins are vulnerable. We

think outsourcing, automation and

changing compensation structures can

address 40% of these costs.



Advisors’ Greatest Risk to Their Business in the Future

2016 2018

Ensuring tech is up to date 34% (3rd) 52% (1st)

Adding clients 22% (4th) 40% (2nd)

Managing operational requirements 36% (2nd) 26% (3rd)

Meeting client service demands 38% (1st) 24% (4th)

Complying with regulations 17% (5th) 22% (5th)

RIAs Rate Their Toughest Business Challenges

Source: The New RIA Opportunity, Ignite Research, July 2018

› In 2016 RIA’s rated “meeting client service demands” as their #1 challenge

whereas in 2018 RIA’s rate “ensuring tech is up to date” as their #1 challenge.

› While keeping up with technology is a critical part of the client experience

advisors must not lose sight of meeting client demands.



Clients Want to Be Understood

Most Valued Advisor AttributesPercentage of HNW Clients, 2018

Source: CEB 2018 Client Experience Survey; n=253

16%

20%

21%

35%

43%

44%

50%

54%

0% 10% 20% 30% 40% 50% 60%

Motivates to Take Action to Improve Financial Situation

Save Time

Provides a Unique Perspective

Helps Progress Toward Achieving Financial Goals

Delivers Quality Service

Tailors Advice to My Financial Needs

Provides Strong Financial Return on Investments

Lookout for My Best Interest



Clients Responsive to Holistic Approach

55%

45%

Proactive and Ongoing Help Beyond Immediate Challenges

Clear and Direct Guidance Issues Raised

Preferred Approach to Guidance

Percentage of Investors, North America, 2018

Source: CEB 2018 Client Experience Survey; n = 158



Investors Have High Expectations

Holistic Advice Central to Firm Value Proposition

Source: Optimizing for Holistic Advice, Gartner, September 25-26, 2018; n= 44 executives (2014); 171executives (2015); and 92 executives (2017)

Importance of Holistic Advice to Value PropositionPercentage of Wealth Management Executives, 2014-2018

2014 2015 2018

64% - Building Holistic

Relationships Is Very

Important

88% - Firm Value

Proposition Is Centered

on Holistic Advice

92% - Enhancing In-

Person, Goals-Based

Planning and Advice Is

Very or Extremely

Important



Industry Forces Driving Need for Differentiation

Source: CEB analysis, Widows on the Future 2016, Key Wealth Management Trends

Established

Competitors (Schwab, Vanguard)

Traditional

Wealth FirmsRobo Offerings

(Betterment,

Wealthfront)

• Low cost

• Commoditized

products

• Do it Yourself

Message

• Fee-based

• Advisor-led

relationship

• Low cost

• Digital first

• Automated advice

Develop firm-led

commercial insight

to differentiate

advisor interactions.

Win Here

Bring flexibility to client

service by accounting for

digital preferences and

behaviors in client

segmentation strategies

Compete Here

Transform investment

management through

automation and

centralization to compete

digitally and realize greater

efficiencies.

Compete Here



Apply Micro-Moments Throughout Your Customer’s Journey

You’ve got to anticipate the micro-moments for your

clients and then commit to being there to help when

those moments occur.

BETHERE

You’ve got to be relevant to clients’ needs in the moment

and connect people to the answers they’re looking for.

BEUSEFUL

They’re called micro-moments for a reason. Mobile users

want to know, go, and execute swiftly. Your mobile

experience has to be fast and frictionless.

BEQUICK

Source: Google – Think with Google 2015

Exploiting Micro-Moments

3 Essential Strategies



Marketing –

A process, a strategy... What you do before

and after the client walks in the door



Hone Your Niche and Segment Your Clients

› 64% of advisors who participated in our survey segment their clients.

– By AUM

– By AUM plus past referrals

– By revenue

– By A/B/C/D clients

› Approach won’t advance success with HNW clients as it is not client-focused,

it’s advisor-based.

› Fewer than 10% of advisors segment their clients by service offering

– Segmentation by service can give staff the ability to have more tailored and

personal interactions with clients

– Gives the opportunity to better anticipate client needs

› Consider segmenting your clients by life stage or persona

Source: SEI Survey, HNW Service, May 2018, n=375

Segment your clients




› Don't assume that all HNW clients are alike, or want to be serviced the same

› Use hypothetical personas to help illustrate how you might develop a service model

that meets the particular needs of very different HNW clients

Source: SEI Survey, HNW Service, May 2018, n=375

Dennis an established

investor

Dennis, Sr. a retired entrepreneur

and investor

Denise a relatively new

investor

on the fast track

Age: 57

Observations:

• Prefers mobile technology,

but enjoys annual in-person

meetings

• When it comes to

performance reporting, he

wants as much detail as

possible

Age: 78

Observations:

• In the decumulation phase

• Favors more frequent

contact

• Prefers personal phone

calls and in-person

meetings

Age: 28

Observations:

• Dependent on mobile

technology.

• Runs a sales operation and

travels extensively

• Prefers meetings conducted

virtually

Start by crafting personas




Niches come in all sizes and shapes; the narrower the better

› Don’t confuse a target market with a niche, i.e. “HNW investors with $1 million

in investable assets” is a target; “Middle-aged HNW investors with special

needs children in your geographic area” is a niche

› Specialize – your expertise, your vocabulary and your relatability – brings what

HNW investors want and what you know together in a credible and sincere

way

› 31% of advisors in our survey service a niche – the other nearly 70% are

trying to define their value proposition as a generalist

› Those that do serve a niche, offered up a broad range of niche examples, i.e.,

police officers; investors interested in biblical responsible investing; and

military.

Source: SEI Advisor Survey, HNW Service, May 2018, n=375



Carefully Craft Your Value Proposition

A value proposition is not a tagline or slogan

› Your value proposition is about your client, not you

– Clients you service

– Obstacles they face

– What you do to serve them

› It should permeate your business and service model

› The best value propositions are:

– Distinctive

– Targeted

– Measurable

– Defendable

– Sustainable



Carefully Craft Your Value Proposition

The SEI Value Proposition Formula

I/We specialize in [solution you deliver] for [ideal customer] who [needs help

with the pressing problem you address.]

› Spend the necessary time and effort to craft a compelling value proposition to

inform your firm’s service, sales and marketing efforts

› Use plain, simple language - keep your target client in mind and express your

value proposition in terms and the emotional tone they can relate to



Structure of Website for Advisors Today

Focus on the client experience

by providing a user friendly,

substantive, interactive, and

highly personalized online

experience.

Make sure it is consistent

across different platforms!

Source: Websites for Wealth Management: How to Transform a Static Web Presences into a Digital Dialogue., 2018

14%18%

54%

80%

75%

Smart speaker

Smartwatch

Tablet device

Desktop computer

Smartphone

Devices Used by HNWI’s

for Financial Matters



Structure of Website for Advisors Today

› Prospects are viewing your website before they even contact you. This is the

best chance you have at making a good first impression.

› Strong websites include:

Descriptive outline of services provided

List of cost and fees

Description of advisory and investment process

Company information and mission

Features for prospective clients

Wealth manager’s expertise

Links to social media pages

Client coaching information

Modern web design

Accessibility across different devices

Source: Websites for Wealth Management: How to Transform a Static Web Presences into a Digital Dialogue., 2018



Leveraging Social Media For Micro-Moments

› By taking advantage of free opportunities to create social media profiles on

popular sites you are automatically expanding your digital footprint.

› Advantages to Social Media?

More than 90% of high-net-worth investors use social media today

5 million investors with assets of $100,000 or more use social media to

investigate their financial decisions

52% of affluent investors say they would interact with financial advisors via

social media

• Only 4% of affluent investors have been engaged by financial advisors

online

Source: Seeking Alpha, Tips From The Pros: How To Use Social Media Marketing For Financial Advisors, Jack Waymire, July 10th 2018



Client Engagement Landscape

Category Description Examples

Email Send mass, targeted or

individual emails

Constant Contact

Social Media Scale posts across social media

channels

HootSuite

Tech Marketing Content search engine and

distribution

Google Ads

Outsourced

Marketing

Content curation and

distribution

Advisor Stream

Website

Management

Website creation and support Advisor Websites, Emerald

Website News

Feed

Auto-update website with news

content

Advisor Websites, Advisor

Stream

Interactive

Website Add-ins

Engagement tools & calculators

in website

Riskalyze



Marketing Calendar Template

› Target audiences

› Marketing activities

› Measuring results

› Setting budgets

› Setting timetables

› Assigning individuals for

each activity

Plan for the year by creating a tactical marketing plan



Sales –

Acquiring a growing set of “must have” skills



Why Would an Investor Approach You?

Source: Phoenix Wealth & Affluent Monitor 2018; Wealth Management Charts & Tables; Year-End 2017

Total Affluent

Friend/colleague referral 19%

Contacted firm directly 17%

Family referral 15%

An existing relationship with someone at the firm, my advisor took my

business

13%

Followed advisor from a previous firm 8%

Someone else chose for me (spouse, family member 5%

Is/was my parents advisor 4%

Don’t recall 6%

How First Began Relationship With Primary Advisor, 2017



The State of Referrals Today

Do You Feel You Are Maximizing Your Referral Opportunities?

Source: The Client Driven Practice Survey, Input was gathered from 512 firms across the country, via online survey between March 15 and April 1, 2017.

The survey took approximately 30 minutes to complete. The margin of error is estimated at +/- 4.3%



Implement a Referral System



They Don’t Always Seek You Out

› The 1st generation of financial advisors started in a product-driven role

(i.e. insurance sales or stock broker) before becoming more advice-based.

› Today’s advisors begin their careers as planners and lack business

development experience.

› The Problem: All advice-based financial planning fiduciaries still have to sell

their services - selling doesn’t end once the client comes on board.

“It doesn’t matter how good your financial advice is

if you can’t convince anyone to pay you for it.”

- Michael Kitces

Source: Nerd’s Eye View; Michael Kitces, August 2015



Sell in a Way That Makes You Comfortable

Focus on 3 ways to increase your sales skills…

but stay comfortable doing it

1. Change your mindset.

› It starts with recognizing that this is an area you want to improve.

› Learn to embrace the sales process and reframe to a more positive mindset.

“I want to grow, and I will learn what I need to in order to do so.”

2. Have an overall written sales plan.

› Understand what has worked and what hasn’t.

› Decide your specific target, what you need to do to get there, and who will do it by

when.

3. Make no assumptions - Use consultative questioning and active listening skills.

› Why is the prospect talking to you now versus six months ago?

› What do you understand about their motives or their buying criteria?

Source: Selling for the Non-Sales Professional; Advisor Perspectives; May 19, 2015; Beverly Flaxington



Establish the Relationship

Sophisticated Investment

Strategy and Analysts

› Comprehensive, fully objective

review of products and services

› Continuous analysis and

consideration of new research

findings/technology

› A formal, highly specific

investment plan and

recommended portfolio structure

› Automatic portfolio rebalancing to

maintain your specific portfolio

structure

Personal Customized

Consulting and Guidance

› Full understanding of your

goals for yourself, your family,

and your communities

› Continuous balancing of your

wealth management with those

life goals

› Identification of your

investment objectives and risk

tolerance

› Highly personalized service

with customized reporting

Best-in-Class Portfolio

Management & Monitoring

› Employment of institutional

money managers not usually

available to individuals

› Disciplined, continuous

monitoring of money managers

in your portfolio

› Ongoing review and

recommendations around

changes in the capital markets

› Investment policy adjustments

as your goals, asset levels and

market conditions change

› Low, institutional-class

fund/portfolio expenses to help

minimize impact on portfolio

return



Effective Onboarding –

The foundation of long-term loyal relationships



Achieving Investor’s Trust

› If you fail to establish trust at any level, the relationship collapses– no second

chances.

› Client trust can evolve over time from a simple transaction to more meaningful

engagement as confidence deepens.

› As clients and advisors move along the trust spectrum, service becomes more

complex and requires greater customization

› Don’t forget about the lower levels of service; they continue to be every bit as

important

› Once you move beyond investment management, greater engagement

through financial planning can open doors to increased wallet share and multi-

generational conversations with family members



Client Service Statement

Investment Oversight Services

› Design personalized portfolios

to meet your needs

› Goals-focused investments

› Independent advice

› 401K allocation advice

› Quarterly newsletter

› Independent and objective review of

products and services in the

marketplace

› Low institutional costs

› Access to a superior team of

institutional money managers

› Disciplined, continuous money

manager monitoring

› Tax-aware investing

› Portfolio rebalancing

› Remain “in touch” with changes in

global capital markets

› Make use of new research

findings and technology

› Appropriately adjust investment

policy over time



Client Service Statement

Enhance With Your Brand



Make Service a Differentiator

Create a Client Service Roadmap

Create a “Client Roadmap” to explain on-going value

› Planning process

› Client service meetings

› Ongoing communications

› Ongoing events

› Behind the scenes



Follow a Client Service Roadmap



Use a Goals-Based Questionnaire

› Current financial plan

– Accumulation

– Stability

– Income

› Investment Policy

Statement

› Current investment

process

› Goals and timeframes

› Risk tolerance

› Investment experiences/

preferences

› Short- and long-term

plan



Analyze the Data and Stay Top of Mind

I will review this information and return with my analysis:

› Strengths and weaknesses of your current program

› Alternative ways to pursue goals

› Recommended improvements in your program

In return, I ask you to:

› Meet again with me on [Date, Time]

› Keep an open mind to what I report

› Review literature

› Consider the advantages of this process that I have described



Analysis of Existing Portfolio

› Reiterate investment process

› Explain your analysis with examples, where

appropriate:

– Lack of clear investment policy

– Investments mismatched with objectives

– Inappropriate level of risk

– Lack of diversification

– Under performing investments or managers

– Style drift

– Overlapping investments or management styles

– Lack of tax management

– Excessive expenses or trading activity

– Lack of monitoring, adjusting, rebalancing

– Unclear or untimely reporting

– Lack of communication and service



Onboarding

Appropriate Recommendations

› Present personalized proposal

– Goal-based implementation

› Present appropriate strategy sheet

› Present recommended portfolio

– Risk tolerance level

– Allocation guidelines

– How the portfolio implements “areas

for improvement”

› Discuss conclusions:

– Existing portfolio strengths

– Recommended improvements

› Probe for client understanding of

recommended improvements and

related concepts

› Ask for acceptance of

recommendations



Wealth Management Meeting

› Think ahead about how you will handle questions about the transition, such as:

Will my investments need to change?

Will I be paying more?

Will my level of service change?

› Have a straightforward, positively-framed answer prepared ahead of time.

› Consider how you might respond to clients who object to the change.

› Will you make exceptions in order to keep the relationship or let them go?



Wealth Management Meeting

Workflow



Summary

› Today’s market requires advisors to differentiate themselves by developing

their own unique brand that is consistent across all stages of a relationship.

› Marketing requires the development of an actionable strategy that engages

clients and prospects through a series of micro-moments.

› While sales might not be second nature to you, find a method that makes

both you and your prospects/clients feel comfortable.

› Onboarding is crucial to establishing a foundation for long-term

relationships and creating loyal advocates from the start.



SEI Investments Company

Who We Are

SEI is a leading global provider of wealth management solutions. We help professional wealth managers, institutional

investors, and private investors create and manage wealth – and enable their long-term success – by providing solutions

that are both comprehensive and innovative.

A Market Leader• Manages $331 billion assets1

• Administers $545 billion in client assets1

• Leading global provider of Bank Trust

technology

• Relationships with trust departments of 11 of the

20 largest U.S. banks1

Independent Advisor Solutions• 25 years of experience in providing outsourced

solutions to independent advisors

• Over 7,500 advisors using SEI’s solution1

• $65.3 billion in advisors’ AUM1

• SEI is one of the top U.S. Advisory Third-Party

Managed Account Providers3

• One-stop accountability with SEI Private

Trust Company 1As of June 30, 20182As of December 31, 2017

3Cerulli Associates, Q1 2018

A Successful Company• Founded in 1968, a public company since

1981 (NASDAQ: SEIC)

• 2017 revenues: $1.52 billion2

• 2017 net income: $404 million2

A Global Company• ~3,800 employees worldwide1



Independent Advisor Solutions

A Comprehensive Solution

› Scientific,

disciplined, and

time-tested

approach

› Supports

liquidity,

accumulation &

distribution

› Targeted asset

allocation

› Multiple

specialist

managers with

dynamic asset

allocation

› Ongoing

oversight

› Mutual Fund

Models

› Managed

Accounts

– City National

Rochdale

› ETF Strategies

› Goals -Based

Strategies

› Distribution -

Focused

Strategies

› Tax

Management

› Taxable

Ladders

– Corporate

– TIPS

› Municipal

Ladders

– National

– State

Focused/

Specific

Banking

› FDIC-insured

CD program

› Debit card

› Online bill pay

› Checking

› Securities-

backed lines of

credit

Trusts

› Agent or

directed

trustee in 50

states

Charitable giving

› Donor-Advised

fund

INVESTMENT & WEALTH PROGRAMS

Investment

Philosophy

Investment

Strategies

Wealth

Programs

› Full Custody

› No trading fees

› No IRA fees

› Automated Trade

processing

› Auto fee calc &

deduction

› Systematic

withdrawals

› Portfolio

rebalancing

› Model

management

› Householding

› UMA

› Proposal System

› Tax loss

harvesting

› Tax reporting

› Integrated

workflows &

approvals

› Advisor & Admin

custom

Dashboards

› Online Account

app with

e-signature

› Advanced

performance

reporting

› Goals-based

client

statements

› Account

Aggregation

› New End-

investor website

› Comprehensive

Downloading

capabilities

› Deep integration

with CRM’s and

Fin Planning

ADVISOR BUSINESS PLATFORM

Wealth Platform & Technology

› Dedicated

project

management

team

› Client

segmentation

› Develop a

project plan

› Complete IPS

& proposals

› Complete all

account open

paperwork

› Assist in client

meetings

› Investment

advice,

planning, &

presentation

support

› Experienced

team of CFAS,

CFPS, &

CPAS.

› Customized

performance

analytics

› Ongoing

proposal

support

› Online proposal

tool

› Custom

marketing

materials

› Investor-

approved

seminars

› Research

papers and

commentaries

› Quarterly

investment

reviews

› Coaching &

growth

programs

› Market

positioning &

branding

› Marketing

planning guides

PRACTICE MANAGEMENT PROGRAMS

Business

Transition

Case

Management

Marketing &

Growth

Programs

*Banking services provided by The Bancorp

FOR FINANCIAL INTERMEDIARY USE ONLY.




Disclosures

Information provided by Independent Advisor Solutions by SEI, a strategic business unit of

SEI Investments Company (SEI). Services provided by SEI Investments Management

Corporation and SEI Global Services, Inc., wholly owned subsidiaries of SEI.

put your business where your brand is -...

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