Develop your skill set to maximise your client opportunities

1. Develop your skill set to maximise your client opportunities Julian Wells Director Adviser Matrix

2. Agenda The relationship - and the difference - between marketing and sales How marketing can help you focus your business efforts How to get more value from your existing clients and attract new ones Opening up new revenue streams

3. The state of play Sir James Crosby’s interim report into the mortgage markets predicted the current turmoil in the mortgage market will see many intermediaries forced out of business Cost and resource management has never been more important in the intermediary market Advisers need to look at ways to diversify their business and maximise revenue opportunities

4. Market Opportunities • When asked how they wanted to purchase financial products • 5%of the general public preferred to purchase via the internet • 95% preferred face to face advice • In 1991, there were 250,000 advisers, there are now around 40,000 • There is opportunity in the market • But how do you seize it? Source:: Linea

5. Sales vs Marketing Sales are what happen as a result of marketing Marketing is all about getting yourself in position to make a sale The right people, the right message, at the right time

6. Advisers are not generally comfortablewith marketing their business • How valuable would it be for you / your business to get assistance with generating new business without having to have a significant budget? 1 Extremely valuable 38 24.20% 2 Very valuable 35 22.30% 3 Fairly valuable 38 24.20% 4 No value 26 16.60% 5 Don't know 20 12.70% TOTAL 157 100.00% NMG Group, May 2008

7. Your ideal source of advice is other advisers Which, if any, of the following would it be useful to get marketing related advice from? 1 Other intermediaries 50 23.10% 2 Lenders/providers 44 20.40% 3 Marketing consultants 32 14.80% 4 Marketing service providers (e.g.. Web experts, printers, designers) 34 15.70% 5 Other (please specify) 5 2.30% 6 None / do not need advice 51 23.60% TOTAL 216 100.00% NMG Group, May 2008

8. Case study - Protection

9. Market Opportunities • Each year, 600,000 people die • That’s 1,643 each day • Each year, around 700,000 people suffer a heart attack, a stroke or cancer • That’s 1,917 each day • At any one time, over 2 million people of working age will be off work for over 6 months through accident or illness

10. Market Opportunities • We tend to imagine those with money have less need for protection solutions, the reality is that this is far from the truth • People become used to and even dependant on their standard of living and the one thing that binds us all together is that we all rely on a source of income to provide the things we need and want

11. How marketing can help you focus your business efforts

12. Winning new clients Many advisers are having to change their business models If you do this, you have to tell people If the perception is that you are a mortgage broker… you will get mortgage enquiries Many adviser businesses have changed their name to address this issue

13. Other thoughts… Adverts Do they have the right message? Are they in the right place? Website What is the focus? If you visited your website, what would you think of your business proposition? Put yourself in the shoes of your clients

14. Winning new clients Look at how you source your leads Are your referral relationships actually delivering value to you And are you getting the best prices you can Best eg – conveyancing Evaluate your whole proposition and don’t be afraid to redesign it The market has changed!

15. Contacting existing clients • Review objectives • Implementation: • Who will you target? • When will you call them? • How will you measure success? • The purpose of a phone call is to make an appointment, NOT a sale over the phone

16. Always remember… Successful marketing is all about… • The right people • The right message • The right time If they don’t fit all of the above, don’t call them

17. If you do call them… Think about: • Why are you contacting this client? • Why should they want to meet with you? • What’s in it for them? • Save them money? • Review changes in their circumstances? • Pick up on what you discussed last time? • Changing climate… making things a little tight for many people … made people think about how they’d cope if their salary stopped coming in…?

18. Other opportunities from existing clients

19. Referrals • What are the benefits of referrals? • Hot leads • Easy to appoint • Trust • Easy to sell to • Increased activity • Profitability • Best feedback you could receive…

20. Referrals process • A referral is a sale and to make a sale we have to follow a process. It needs a structure. For example if you just ask the client ‘Do you want to buy some life assurance ‘? The answer would probably be NO. • If you follow the process for a fact find and presentation meeting and use your skills, then that same client is likely to say YES. • Same client different approach different result!!

21. 4 Principles of Referrals Preparation • Prepare them for the question from the start of the meeting (cover at IDD) ie. my business works on a referral basis • In the introduction there must be a mention of ‘How you build your business’ at this stage you are not going to ask for referrals all you want to do is to ‘sow the seed’ • Presenting Meeting: Referrals on the agenda, written or verbal. Best practise written

22. 4 Principles of Referrals Barter • Tell the client how hard you will be working for them and in return you’d hope they’d recommend you to a friend or colleague

23. 4 Principles of Referrals Professional • Unless you provide a 5 star service to your clients you can not expect referrals

24. 4 Principles of Referrals Profile • Let the client know what type of referral you are looking for ie. Give them examples of who could benefit • At the end of the Fact Find meeting, refer back to ‘How At the end of the Presenting meeting ask for the Referral. • you build your business’ and ask for their help. Profile the type of referral you are looking for. You don’t want a name right now but Prompting them for a referral at the next meeting.

25. How much is a client worth? Mortgage Proc Fee Brokerage Fee Mortgage Protection GI Retirement Investments Annuities Equity Release IHT/CGT Planning Over 20 Years £?????? Family Protection Life CI PHI Savings ISA’s Bonds Pension Personal Dormant Policies Company – Employees Life Cover (Key Man)

26. Where to look for help Clubs and networks provide a lot of marketing support See what is available – there are an increasing number of sources of good, sound advice Look out for new ones being announced in the coming weeks and months

27. Adviser Matrix Adviser Matrix is a free and independent service for brokers considering joining networks

28. Closing thoughts 2008 has been a tough year of transition in the market 2009 will see the new landscape evolve Position your business in a way that means you can capitalise on the opportunities available Don’t be afraid to change!

29. And never forget… The right people The right message The right time This is what marketing is about… …and it is also what drives sales

30. Thank you Julian Wells Director Adviser Matrix