© 2015 Information Services Group, Inc. All Rights Reserved.
© 2015 Information Services Group, Inc. All Rights Reserved.
© 2015 Information Services Group, Inc. All Rights Reserved.
How Advisor Relations Programs are Changing to Increase Engagement
Evolve or Perish:
Paul Reynolds
© 2015 Information Services Group, Inc. All Rights Reserved 3
Agenda
o Research methodology & demographics
o Expectations of the third-party advisory channel
o Advisor relations activities and expectations
o Advisor relations team size trends
o Advisor relations budget trends
o Awareness Framework
o Market trends and takeaways
© 2015 Information Services Group, Inc. All Rights Reserved 4
Survey methodology
Who Advisor Relations professionals
What 15-minute online survey
When Completed in August 2015
Why Internal planning
Results 79 completed interviews across 48 different companies, ~30% response rate
© 2015 Information Services Group, Inc. All Rights Reserved 5
Advisor Relations professionals are pulled in multiple directions
Percent of Advisor Relations with other responsibilities 55% 35% 25%
Global Leads
Regional Leads
Team Members
© 2015 Information Services Group, Inc. All Rights Reserved 6
Advisor Relations professionals are pulled in multiple directions
Percent of time they spend doing their “other job” 45% 54%
18%
Global Leads
Regional Leads
Team Members
© 2015 Information Services Group, Inc. All Rights Reserved 7
Time spent on Advisor Relations activities
o External Advisor Management
o Meet with advisors to build relationships
o Make intros between advisors and stakeholders
o Attend formal workshops, briefings, advisor events
o Attend conferences, advisor days, client events
o Internal Team Management
o Work with pursuit teams on opportunities
o Meet with internal salespeople
o Report and manage expectations internally
o Internal Program Management
o Respond to advisor requests
o Execute programs (e.g. advisor days, education)
43%
38%
20%
16%
10%
10%
6%
16%
11%
10%
10%
10%
© 2015 Information Services Group, Inc. All Rights Reserved 8
Measurement
Average Number of Metrics
Global Leads
Regional Leads
Team Members
3.3 2.9 2.6
Primary Success Metric Win $ Invites
$ & #Invites
$
© 2015 Information Services Group, Inc. All Rights Reserved 9
Top success metrics for Advisor Relations
Dollar Value of Sales Won
Dollar Value of Invitations
Number of Invitations
66%
47%
45%
47%
65%
65%
45%
55%
45%
Global Leads
Regional Leads
Team Members
© 2015 Information Services Group, Inc. All Rights Reserved 10
Market Segments
Large Western Heritage
Large Indian
Heritage
Small Western Heritage
Small Indian Heritage
© 2015 Information Services Group, Inc. All Rights Reserved 11
Goals are both the same
and different.
Every provider has two primary goals when engaging with ISG:1. to increase its pipeline2. to improve its winning percentage.
Yet the scale of those expectations differs dramatically…
© 2015 Information Services Group, Inc. All Rights Reserved 12
TPA Channel Expectations
Average Channel Expectation
Expectation range
ISG Representation
ISG Range
Expect increased ISG pipeline in 2016
$7.4B .
$100M -$25B+
18% .
5% - 30%
43%
Large Western Heritage
$45M .
$5M -$100M
31% .
1% - 100%
56%
Small Western Heritage
$6.2B .
$3.5B -$10B
37% .
30% - 50%
86%
Large Indian Heritage
$165M .
$11M -$500M
23% .
5% - 100%
54%
Small Indian Heritage
© 2015 Information Services Group, Inc. All Rights Reserved 13
Teams are growing to achieve expectations
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
3.3
4.9
0.8
2.0
5.5
8.8
1.6
3.3
2013 2016e
© 2015 Information Services Group, Inc. All Rights Reserved 14
Variances in 2016 Advisor Relations team size
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
1.0
10.0
1.0
5.0 5.0
12.0
1.0
7.0
Min Avg Max
4.9
2.0
8.8
3.3
© 2015 Information Services Group, Inc. All Rights Reserved 15
Growth in global Advisor Relations team size
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
+40% +15% +33% +47%
Growth is from 2015 to 2016.
35% 44%of companies will
expand their Advisor Relations
teams in 2016
is the average growth among those that will
expand
+69% +67% +10% +34%
% Will Grow
% Growth
© 2015 Information Services Group, Inc. All Rights Reserved 16
Expansion by company type
Americas EMEA AP Global
Large Western 0.8 1.0 - 1.8
Small Western 0.5 0.5 - 1.0
Large Indian 0.5 0.5 - 1.0
Small Indian 0.8 0.1 0.3 1.1
© 2015 Information Services Group, Inc. All Rights Reserved 17
Expansion by geography
0.70.4
0.1
USAUK &
Ireland
India
Generally, companies look to invest in the countries where they already have a presence.
© 2015 Information Services Group, Inc. All Rights Reserved 18
External spending on Advisor Relations
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
$582K $158K $813K $383K
$395k Average external spend on Advisor Relations Programs in 2015
43%
57%
66%
34%
0%
100%
34%
66%
Average Spending
Below $100K
Above $100K
© 2015 Information Services Group, Inc. All Rights Reserved 19
How budgets are allocated
o Advisor interaction (education, events, conferences) 39%
o Databases/ Market Data/ Research Subscription (Momentum) 36%
o Attendance at industry conferences (IAOP, SIG) 7%
o Sales Support and Training (methodology training) 6%
o Industry awards, reprint rights to published reports 4%
o Sponsorship of TPA sponsored client facing events 3%
o Custom research project 3%
o Others 2%
© 2015 Information Services Group, Inc. All Rights Reserved 20
Expected increases in external spending
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
27% 62% 67% 54%
Growth is from 2015 to 2016
54% of companies will increase their external Advisor Relations spending in 2016
+18% +22% +19% +21%
% Will Increase
Average Increase
© 2015 Information Services Group, Inc. All Rights Reserved 21
Awareness framework
Awareness
Familiar, need more info to consider for a deal
Understanding
Know well, can ID appropriate deals for them
Trust
I feel comfortable inviting them to a deal
Advocacy
Proactively recommend them to my clients
“Trust is not a matter of technique, tricks, or tools but of character. It is built and maintained by many small actions over time.”
© 2015 Information Services Group, Inc. All Rights Reserved 22
Comparison findings for Americas infrastructure
85%
31
16
76
Understanding
58%
15
6
54
Trust
99%93
56
36
Awareness
23%20
4 1
Advocacy
Large US firms
Large Indian
Small US firms
Small Indian
Source: ISG Service Provider Awareness Research 2015, Americas Infrastructure
© 2015 Information Services Group, Inc. All Rights Reserved 23
Market Trends…o Advisor Relations team sizes are
growing
o External spend with third-party advisors is increasing
o Providers have high expectations from the third-party advisory channel
o Providers are increasingly looking for more from the ISG channel
ISG Advisor Community
Your Company
Company
Company
Company
Company
Company
Company
Company
Company
CompanyCompany
CompanyCompany
Company Company
Company
Implications
© 2015 Information Services Group, Inc. All Rights Reserved 24
MarketingSales
Advisor Relations is a combination of…
&80% of sales are made on the 5th to 12th contact.
© 2015 Information Services Group, Inc. All Rights Reserved 25
The rule of seven simply says…
The prospective buyer should hear or see the marketing message at least seven times before they buy it from you.
http://www.tutorialspoint.com/management_concepts/the_rule_of_seven.htm
© 2015 Information Services Group, Inc. All Rights Reserved 26
Rule of Seven, Summarized & Tailored…
o You need to let the influencerhear and see your marketing message many times before they make a recommendation.
o There are many reasons for the need of repetition. Influencersjust can't trust you and make the recommendation the first time you show your message.
http://www.tutorialspoint.com/management_concepts/the_rule_of_seven.htm
o So, this simply means that your marketing effort should be repetitive and consistent.
o You cannot just educate themone time and expect a recommendation.
o The hidden message of rule of seven is the continuous and repetitive effort that should be put in.
© 2015 Information Services Group, Inc. All Rights Reserved 27
So how do you make your message stand out?
The Psychology of Storytelling, Gregory Ciotti
“Those in sales and marketing have known for a long time that stories trump data when it comes to persuasion because stories areeasier to understand and relate to.”
“When facts and information are framed by a compelling story,you'll not only hold the attention of your audience, but you'll also make the information presented more memorable… No matter how compelling your facts are, if your audience isn't invested in what you're saying, all the information will be lost on them.”
© 2015 Information Services Group, Inc. All Rights Reserved 28
In the ever-evolving marketplace,o Advisor relations teams are growing.
o Providers are increasing their spending levels with third-party advisors.
o Expectations of the third-party advisory channel are higher than ever.
Advisor Relations teams need to leverage data to help prioritize where to invest energy.
Service providers need to
o Ensure their message is heard
o Use a programmatic approach to engage with third-party advisors
“Trust … is built and maintained by many small actions over time.”
o Identify their true differentiation
o Make a memorable impression
www.isg-one.com
imagine your future™
let’s connect…