eCommerce + Wealth Management Using the Internet to Enhance Client Relationships

1. eCommerce + Wealth ManagementUsing the Internet to Enhance Client Relationships David Mayer, V.P. eCommerce

2. Internet Traffic & Demographic Trends: How they Impact You Ziegler’s eCommerce Strategy: Building an Infrastructure to Support Your Business Efforts Integrating the Internet Into Your Business Plan:If I Were an Investment Consultant I Would… Conclusion Questions & Answers Agenda

3. eCommerce + Wealth ManagementUsing the Internet to Enhance Client Relationships Internet Traffic & Demographic Trends:How they Impact You

4. Internet Demographics & Trends United States Internet Usage: • Overall, 63% of adult Americans use the Internet • The online population expanded from roughly 86 million Americans in March 2000, to 126 million in August 2003 – an increase of 53% • The size of the online population on a typical daygrew from 52 million Americans in March 2000 to 66 million in August 2003 – an increase of 27% Clearly the popularity of the Internet continues to grow… Source: PEW INTERNET & AMERICAN LIFE PROJECT, “America’s Online Pursuits: The changing picture of who’s online and what they do”, December 23, 2003, Internet”, http://www.pewinternet.org/pdfs/PIP_Online_Pursuits_Final.PDF.

5. Internet Demographics & Trends In particular, interest in financial information and services has grown: • The number of those who had sought financial information online, such as stock quotes or mortgage interest rates increased by 32% between 2000 and 2002. • Online banking increased by 127% — more than any other activity • In March 2000, just 15 million had tried some form of online banking, but by October 2002, 34 million had done so. • About one in ten Internet users has bought or sold stocks online. Do you know your clients’ online habits? Source: PEW INTERNET & AMERICAN LIFE PROJECT, “America’s Online Pursuits: The changing picture of who’s online and what they do”, December 23, 2003, Internet”, http://www.pewinternet.org/pdfs/PIP_Online_Pursuits_Final.PDF.

6. My Typical Clients Aren’t Online… Wired Seniors: • 22% of Americans 65 and older use the Internet • The percent of seniors who go online has jumped by 47% between 2000 and 2004 • There is a burgeoning group of Americans who are slightly younger than retirees and who are vastly more attached to the online world… Source: PEW INTERNET & AMERICAN LIFE PROJECT, “Older Americans and the Internet”, March 25, 2004, http://www.pewinternet.org/PPF/r/117/report_display.asp

7. 22% 2004 My Typical Clients Aren’t Online…YET! Wired Seniors: • …this “silver wave” has gained momentum and • As Internet users in their 50s get older and retire, they are unlikely to give up their wired ways and therefore will transform the wired senior stereotype • In 10 – 15 years the current 50 – 64 age group will be the > 65 age group.. over 50% of seniors will be wired In the foreseeable future an increasing percentage of your clients will be online! Source: PEW INTERNET & AMERICAN LIFE PROJECT, “Older Americans and the Internet”, March 25, 2004, http://www.pewinternet.org/PPF/r/117/report_display.asp

8. Wired seniors are as likely as younger users to go online on a typical day Wired seniors are as likely as younger users to use email Wired seniors are nearly as likely as younger users to use a search engine to answer a specific question Wired Seniors…Online Behaviors Once seniors get online, these predominately whites, highly-educated, higher income individuals are just as enthusiastic as younger users: For primary Internet activities, wired seniors are using the Internet as much as younger users Source: PEW INTERNET & AMERICAN LIFE PROJECT, “Older Americans and the Internet”, March 25, 2004, http://www.pewinternet.org/PPF/r/117/report_display.asp

9. Wired Seniors…Online Activities There have been big increases since 2000 in the number of online seniors doing several key activities: With the impending “silver wave” these growth rates should continue as younger, more internet savvy users approach retirement age! Note the parallels between “Health, wealth and well-being” in these activities Source: PEW INTERNET & AMERICAN LIFE PROJECT, “Older Americans and the Internet”, March 25, 2004, http://www.pewinternet.org/PPF/r/117/report_display.asp

10. Your Clients are or Will be Online • Internet trends have or will change the way you do business: • Clearly the popularity and the importance of the Internet continues to grow…are you as savvy as you need to be? • Your clients may already be online…you should know their habits • With the impending “silver wave”, the number of seniors online will to grow continue as younger, more internet savvy users approach retirement age…are you prepared to meet the demands of this emerging client? • For primary Internet activities, wired seniors are using the Internet as much as younger users and represent a lucrative target market In short, you should be including the Internet in your marketing plan Fortunately for you, the company has been working to make this easier for you

11. Ziegler’s eCommerce StrategyUsing the Internet to Enhance Client Relationships Ziegler’s eCommerce Strategy: Building an Infrastructure to Support Your Business Efforts

12. eCommerce Strategy • For the past three years eCommerce has been executing a strategy adopted in February of 2002 focused on: • Building a Technical Infrastructure using a Content Management System • Segmenting web sites tailored to our clients needs, not the firms • Building common, integrated, multiple-site functionality • Using common features & templates from which they can be built • Applying best practices to develop and market each site

13. Over the course of the past three years we have created and launched eight new sites. Bondsareback Healthcare Ziegler.com Senior Living Church Loans Zplanet Personal Investing Northtrackfunds Brokers Only Asset Management Taxsavvvinvesting eCommerce Strategy Building Client Centric Web Sites During the next year we plan on launching 2 new sites Today we are officially launching a brand new site for you and your clients… www.zieglerpersonalinvesting.com

21. Ziegler Personal Investing As a point of reference this new site can help you: Examples • Announce the availability of the new site • Announce a new white paper • Announce a new article • Direct clients to the site to learn about our various products like insurance (cross sell) • Direct clients to the “managed accounts section” to learn more about the mechanics of this type of relationship • Direct clients to the site to learn more about asset allocation • Instruct your client to download a form from the site • During a conference call step a client through the use of a calculator • While online with the client, conduct a quarterly portfolio review • Communicate with your clients • Educate your clients • Collaborate with your clients Ultimately enhance your client relationships…and sell more!

22. eCommerce + Wealth ManagementUsing the Internet to Enhance Client Relationships Integrating the Internet Into Your Marketing Plan: If I Were an Investment Consultant I Would…

23. If I Were an Investment Consultant I Would… Reminder… Marketing materials must first be approved by Marketing & Compliance Before pursuing any of the following ideas you must first gain approval

24. If I Were an Investment Consultant I Would… Strategies for Integrating the Internet into your business plan • Personally be prepared for clients who are or will be online • Get involved in online activities • Encourage clients to get online • Passively promote the Personal Investing site • Actively promote the Personal Investing site • Regularly communicate with clients • Collaborate, educate and inform clients using online resources • Seek out client online needs • Include Internet activities within my marketing plan

25. If I Were an Investment Consultant I Would… Personally be prepared for clients who are or will be online • Thoroughly know the content within the PI site • Use PI content regularly • Be a NetXChange Client expert • Be a finance portal expert (Yahoo Finance, MSN Money) • Use ZNet to manage client data including email addresses

26. If I Were an Investment Consultant I Would… Get involved in online activities • Join online broker listings • Commit to and offer a free portfolio analysis to prospects visiting the PI site • Write articles for the PI site and announce them to my clients • Put my presentations online and announce them to my clients • Add my seminars to the PI calendar • Note: Chat rooms are a compliance nightmare

27. If I Were an Investment Consultant I Would… Encourage clients to get online • Obtain email addresses from all my clients and prospects • Encourage clients to signup for “Online Account Information” (NetXChange Client) • Regularly promote & encourage my clients to visit PI • Point clients to finance portals & investor education sites • Encourage clients to refer the PI site to others • Regularly inform my clients of my online activities

28. If I Were an Investment Consultant I Would… Passively promote the Personal Investing site • Change my email signature to include the PI site address • Change my business cards to include the PI site address • Change my letter signatures to include the PI site address • Change my presentations to include the PI site address

29. If I Were an Investment Consultant I Would… Actively promote the Personal Investing site • Call clients to announce the site • Send letters & emails announcing the PI site • Create postcard takeaways for seminars with the PI address • Use PI address in advertising materials

30. If I Were an Investment Consultant I Would… Regularly communicate with clients • Send letters & emails announcing new products found on the site • Send letters & emails announcing articles, newsletters etc. • Send electronic greeting cards • Send email links to other Internet content • Send postcards to clients with links to new content

31. If I Were an Investment Consultant I Would… Collaborate, educate and inform clients using online resources • Conduct periodic “Online Portfolio Reviews” with my clients • Step clients through calculators to sell them concepts • Host mini seminars online using content with the PI site • Point clients to finance portals & investor education sites • Conduct presentations online using presentations found in the PI site

32. If I Were an Investment Consultant I Would… Seek out client online needs • Ask for client feedback regarding the PI site • Listen for and make suggestions on ways to improve the PI site • Let clients know when we incorporate their ideas • Create content for the PI site

33. If I Were an Investment Consultant I Would… Include Internet activities within my marketing plan • Map my client’s needs to the offerings within PI • Find gaps in client needs and fill them • Create an Internet promotional plan

34. My Internet Marketing Plan

35. My Internet Marketing Plan

36. My Internet Marketing Plan

37. If I Were a Investment Consultant I Would… Summary of integrating the Internet into your business plan: • The new PI web site has a wealth of information for you to use and integrate into your routines • There are opportunities for you to use the Internet to enhance your client relationships • A basic Internet Marketing Plan coupled with diligence can help organize your strategies and tactics

38. Ziegler’s eCommerce StrategyBuilding an Infrastructure to Support Your Business Efforts Concluding Remarks and Q&A

39. Concluding Remarks Summary: • Current Internet demographics and trends indicate that a growing percentage of your clients will be online and that this trend will affect the way you do business • The firm has created an new Internet site for you and your clients that can be used enhance client relationships • A basic Internet Marketing Plan coupled with diligence can help organize your strategies and tactics to meet the needs of the changing marketplace

40. Resources • Handout with more demographics, Listing of Ziegler web sites and URL’s and a copy of the Marketing Plan • The handout and a copy of this presentation will be posted on Zplanet Under Ziegler Corporate\Corp Comm\Pot Luck

41. Q&A Question: The Internet marketing plan sounds like a good idea. Have materials been created and approved for our use? Answer: Yes & No. What was presented here today was meant to be thought provoking and an introduction to the basics of using the Internet in your business plan. A few things need to happen before Marketing can commit the resources needed to create a complete program for you: • A critical mass of email addresses needs to be accumulated in Znet. You have control over this. • A critical mass of interested Investment Consultants is needed before a program can be instituted Then… Systems and programs will be created to support these activities But… Some of the ideas can be used today (i.e. changing you email signature to include the new URL)

42. Q&A Question: What will the Marketing department be doing to promote the new personal investing site? Answer: • Placing a short article in the Spring 2005 Investors Edge • Write a comprehensive article for 2005 Summer Investors Edge • The new URL will be incorporated into future marketing materials • Work with you to change your personal materials as appropriate • Search engine placement

43. Q&A Question: When we will be able to have our own “broker” and “branch office” web sites? Answer: Our strategy from the beginning was to first create the new personal investing site because the content for any subsequent branch office sites and broker sites needs to be based on the personal investing site. Furthermore, dependent upon the success of this new site (which includes your willingness to use it and help us with it), we would consider the option of creating Branch office web sites and then broker web sites. It should be noted that both “broker” and “branch office” web sites have always been part of our original ecommerce strategy.

44. Thank You