ADVISOR INSIGHT Series Marketing Effectiveness

Transcription

1 ADVISOR INSIGHT Series Marketing Effectiveness 2009

2 Financial Research Corporation One Faneuil Hall Marketplace 3rd Floor Boston, MA For more information contact: or call Canadian-domiciled firms should contact: Hugh Murphy at Copyright 2009 by FRC, LLC. All rights reserved. Your payment for this report is for one copy only. If you desire additional copies of the report, or copies of any section of the report, you can purchase them separately. Reproduction of any part of this report is illegal under the Federal Copyright law (17 USC 10 et seq.) and is prohibited. Photocopying or transmission of the information in any electronic or mechanical fashion is strictly forbidden, unless the user has purchased an annual usage license from FRC that allows the user the capability to quote directly from the FRC content with attribution to the firm. Contact FRC to learn more about your redistribution/attribution options. Publication Date: December 3, 2009

3 TABLE OF CONTENTS TABLE OF CONTENTS Directory of Exhibits iii Biographies Introduction Methodology Executive Summary Chapter One: Effectiveness of Advisor Marketing I. PR Versus Advertising Campaign II. Asset Manager Attributes III. Campaign Effectiveness Generating Asset Manager Awareness Chapter Two: Leading Marketers I. Advertising & Marketing Expenditures in 2007 & II. Differentiation Recognizing Different Brand Aspects III. Who are the Leading Marketers and Why? A. Top Firms for Marketing Materials B. Why Firms are Selected as Leading Marketers C. Delivery Methods for Marketing Materials D. Firm Descriptors IV. Good Content and Keep Things Simple V. Results: Financial Advisors Books (AUM) Page i

4 ADVISOR INSIGHT SERIES 2009: MARKETING EFFECTIVENESS Chapter Three: Developing Effective Marketing Campaigns and Materials I. Where has My Asset Manager Gone? II. Marketing Material Delivery Methods III. Satisfaction Levels with Marketing Materials A. Marketing Material Satisfaction by Channel B. Marketing Material Satisfaction by Tenure IV. Value-Added Programs Chapter Four: Advisor-Oriented Web Sites I. Quantifying Advisor Usage of Web Sites II. Asset Manager Web Site Satisfaction III. Important Features of an Asset Manager s Web Site IV. View from the Branch Manager APPENDICES Appendix A: Channel, Individual vs. Team, Tenure, AUM, & Age Appendix B: Firm Rankings Appendix C: Company-Specific Ratings Appendix D: 2009 vs Findings Page ii

5 DIRECTORY OF EXHIBITS DIRECTORY OF EXHIBITS Exhibit 1 1: Fastest-Growing Complexes in the Bank Channel ($M) Exhibit 1 2: June Assets and June YTD Net Sales of Top 50 Wholesale Complexes ($000) Exhibit 1 3: Overall Sales-to-Asset Ratio of the Top 50 Wholesale Complexes Exhibit 1 4: Putnam Absolute Return Fund Series Exhibit 1 5: Most Effective Campaign to Support Client Dialogue Exhibit 1 6: Most Effective Campaign to Support Client Dialogue by Channel Exhibit 1 7: Most Effective Campaign to Support Client Dialogue by Tenure & Age Exhibit 1 8: Important Attributes in Selecting an Asset Management Firm Exhibit 1 9: Important Attributes in Selecting an Asset Management Firm by Channel Exhibit 1 10: Most Effective Campaigns to Generate Awareness Exhibit 1 11: Most Effective Campaigns to Generate Awareness by Channel Exhibit 1 12: Most Effective Campaigns to Generate Awareness by AUM Exhibit 1 13: Most Effective Campaigns to Generate Awareness by Advisor Tenure Exhibit 2 1: Advertising & Marketing Expenditures in 2007 & Exhibit 2 2: Overall Satisfaction Top-Five Firms Exhibit 2 3: Investment Performance Satisfaction Top-Five Firms Exhibit 2 4: Investment Philosophy Satisfaction Top-Five Firms Exhibit 2 5: Corporate Image/Reputation Satisfaction Top-Five Firms Exhibit 2 6: Sales Support Satisfaction Top-Five Firms Exhibit 2 7: Client Service Satisfaction Top-Five Firms Exhibit 2 8: Marketing Support Satisfaction Top-Five Firms Exhibit 2 9: Marketing Material Effectiveness Top-25 Firms Exhibit 2 10: Reasons For Best Marketing Materials Ratings Exhibit 2 11: How Firms Deliver their Marketing Material Exhibit 2 12: Firm Attribute Ratings Exhibit 2 13: Top-10 "Well-Known" Firms Exhibit 2 14: Top-10 "Reliable" Firms Exhibit 2 15: Top-10 "Good Products" Firms Page iii

6 ADVISOR INSIGHT SERIES 2009: MARKETING EFFECTIVENESS Exhibit 2 16: Top-20 Firms with the Most Assets Under Management Exhibit 2 17: Top-20 Firms Where Advisors have Placed Most Assets in Last 12 Months Exhibit 2 18: Top-20 Mutual Fund Complexes by Assets as of 2Q Exhibit 2 19: Top-20 Variable Annuity Advisors by Assets as of 2Q Exhibit 3 1: Likelihood to Respond to Marketing Materials and Support Exhibit 3 2: Likelihood to Respond to Marketing Materials and Support by Channel Exhibit 3 3: Most Common Delivery of Marketing Materials Exhibit 3 4: Marketing Materials Delivered In-Person by Wholesaler Exhibit 3 5: Marketing Materials Delivered In-Person by Wholesaler by AUM Exhibit 3 6: Marketing Materials Delivered In-Person by Wholesaler by Age Exhibit 3 7: Most Effective Delivery Method of Marketing Materials per Branch Manager Exhibit 3 8: Satisfaction with Marketing Materials, 2009 vs Exhibit 3 9: Satisfaction with Marketing Materials by Channel Exhibit 3 10: Satisfaction with Marketing Materials by Tenure Exhibit 3 11: Advisor Preference for Value-Added Program Topics Exhibit 3 12: Top Value-Added Program Topics by Channel Exhibit 3 13: Branch Manager Preference for Value-Added Program Topics Exhibit 4 1: Average Number of Asset Manager Web Sites Advisors Visit per Week Exhibit 4 2: Average Number of Web Sites Visited per Week by Channel Exhibit 4 3: Number of Web Sites Visited per Week by Channel Exhibit 4 4: Average Time Spent per Week on Asset Manager Web Sites by Age Exhibit 4 5: Time Spent per Week on Asset Manager Web Sites by Channel Exhibit 4 6: Time Spent per Week on Asset Manager Web Sites by AUM Exhibit 4 7: Web Sites Advisors Spend the Most Time Visiting Exhibit 4 8: Satisfaction with Asset Manager Web Sites, 2009 vs Exhibit 4 9: Top-Rated Firms by Satisfaction with Advisor Web Site, 2009 vs Overall Page iv

7 DIRECTORY OF EXHIBITS Exhibit 4 10: Top-Rated Firms by Satisfaction with Advisor Web Site, 2009 vs Ease of Use/User-Friendliness Exhibit 4 11: Top-Rated Firms by Satisfaction with Advisor Web Site, 2009 vs Advisor-Only Content Exhibit 4 12: Top-Rated Firms by Satisfaction with Advisor Web Site, 2009 vs Timeliness of Updates Exhibit 4 13: Top-Rated Firms by Satisfaction with Advisor Web Site, 2009 vs Depth of Information Exhibit 4 14: Important Aspects of an Asset Manager's Web Site by Channel Exhibit 4 15: Features Advisors Would Like to See on Asset Manager Web Site in the Next 12 Months by Channel Exhibit 4 16: Best Asset Manager Web Site for Advisors--Branch Manager Ratings Exhibit 4 17: Important Aspects of an Asset Manager's Web Site--Branch Manager Ratings Page v

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9 BIOGRAPHIES STUDY AUTHORS Amy Strong Research Analyst Amy Strong joined Financial Research Corporation (FRC) as a research analyst in She supports the FRC research team in analysis of financial market trends, writes regularly for FRC publications, and provides client service support. With over ten years of experience in the financial industry, Ms. Strong has served as a senior analyst for Mellon Trust fund accounting, a technical analyst for the Russell Indexes at Russell/Mellon, and as a financial advisor for Morgan Stanley and UBS. Ms. Strong earned a Bachelor of Arts degree from Saint Michael s College and holds Series 7, 66, and 31 FINRA licenses, as well as the New York State Life Accident and Health Insurance License. Chris Yeomans Research Analyst Christopher Yeomans joined Financial Research Corporation (FRC) as a research analyst in He supports the FRC research team in analysis of financial market trends, writes for FRC publications, and provides client service support. Prior to joining FRC, Mr. Yeomans worked at Ameriprise Financial as a financial advisor, working with clients on retirement, education, and estate planning issues. Mr. Yeomans graduated magna cum laude from Babson College and is currently a CFA candidate. He holds the Chartered Retirement Planning Counselor designation, Series 7 and 66 FINRA licenses, as well as the Massachusetts Life, Accident, and Health Insurance license. Page 1

10 ADVISOR INSIGHT SERIES 2009: MARKETING EFFECTIVENESS Margaret Rorick Senior Vice President, Market Research Director Margaret Rorick leads FRC s Market Research efforts, guiding the development and delivery of all survey research products. In this role, she is responsible for bringing the voice of the marketplace from channel to customer to FRC clients through the creation and delivery of thoughtful, timely and relevant research. Ms. Rorick has an extensive background within market research and financial services, from client-side marketing strategy work for financial services companies to research design and analysis work for leading market research firms. In her 17 years as a professional, Ms. Rorick has helped financial services firms define new opportunities in the marketplace, develop new offerings, and position their brands for success. Some of her accomplishments include six years leading marketing and market research efforts at Fidelity Investments, developing new credit products for the leading credit card issuer, as well as designing and managing custom market research studies for Yankelovich Partners. Ms. Rorick holds a Masters in Business Administration from the University of Virginia and received her Bachelor s degree in Economics from Trinity College Page 2

11 BIOGRAPHIES STUDY EDITOR Lisa Campbell Director of Editorial Lisa Campbell rejoined Financial Research Corporation (FRC) in September 2006 as an editor. As director of editorial, she provides oversight for the department as well as editorial support to FRC subject matter experts, and other members of a project team, to develop knowledge publications such as studies, quarterly reports, and other analytical publications related to trends in the financial services industry. She also has primary editorial responsibility for the FRC Monitor, a monthly research report focused on forward-looking trend assessments. Prior to joining the FRC editorial team, Ms. Campbell served as an editorial manager for BISYS Fund Services, where she was responsible for responding to requests for proposals for both new and existing business. Before joining BISYS Fund Services, she was a marketing manager at FRC. With 14 years of industry experience, she has held marketing and editorial positions at Graylyn Associates, First Data Investor Services Group, and The Boston Company. Ms. Campbell received a Master of Fine Arts degree in English from Purdue University, where she also taught creative writing and composition. She also earned a Bachelor of Arts degree in English from Dickinson College. Page 3

12 ADVISOR INSIGHT SERIES 2009: MARKETING EFFECTIVENESS INTRODUCTION Welcome to the 2009 Marketing Effectiveness study of the ADVISOR INSIGHT Series. This study was developed to provide valuable insights about the financial products marketplace to investment firms, product manufacturers, and distributors. In 2009, FRC will be providing a three part picture of the world of the Financial Advisor with three in-depth studies delivered throughout the year: 1) The State of the Financial Advisor Marketplace, 2) Marketing Effectiveness, and 3) Wholesaler Effectiveness. In the first study released in August, we examined how Advisors make decisions for their clients portfolios, with a focus on the changes that have resulted from the significant market turmoil of the past 12 months. In this study, we examine the role of marketing efforts and programs that Advisors are offered by wholesalers and asset managers to uncover what the most effective area of investment can be. We also ask Advisors to rate investment providers on their marketing efforts and materials. Wholesaler Effectiveness, which will be published by the end of the year, will examine the interactions between wholesalers and Advisors, the needs of the Advisor, and how the wholesalers are rated for their ability to build relationships. In these last two studies, FRC is continuing its annual measurement of key factors to influencing Advisor decisions to buy or sell for their clients and will present how current conditions differ from previous years. Marketing Effectiveness In this second annual examination of asset manager marketing efforts, FRC reveals what advisors are looking for from their business partners and what it working best. Over the past year, much has changed for advisors, asset managers, and clients trying to navigate the rough waters of the marketplace, and marketing efforts have become a key lever for asset managers to pull in developing relationships with their intermediary channels. Here we examine the elements of successful marketing programs and materials, new areas of development, and an in-depth look at advisor-oriented websites. Some key analyses include: Advisor Ratings of the Best Asset Manager Marketing: In this report, we explore advisors evaluations of asset managers marketing they receive. What are the elements that are most important to advisors and how do different firms rate on their delivery of those elements? Advisor-Oriented Web Sites: In this section, we examine advisors usage and preferences for the Web sites and their satisfaction with the different tools and information available on them. We also identify the sites that advisors say do the best job and outline the types of improvements that advisors would like to see in the coming year. Page 4

13 METHODOLOGY METHODOLOGY ADVISOR INSIGHT 2009 Marketing Effectiveness was derived from a comprehensive online survey of some 1,497 financial advisors conducted during May and June 2009, yielding 1,361 Advisor surveys 130 branch managers. The sample was drawn from the Harris Interactive Intermediary Panel and represents the national population of financial advisors across channels. Advisors were asked to rate three different asset management firms as a part of the survey. Each advisor was asked to rate one or two companies in their top five firms by percentage of assets in their total book of business. A firm had to have at least 50 complete ratings to be reported. Respondent demographics are as follows: CHANNEL Wirehouse 29% Regional Broker/Dealer 18% Independent Broker/Dealer 28% RIA 5% Bank, Credit Union, or S&L Investment Rep 7% Advisor with Insurance Company 12% Other (Non-registered fee-only planner, or CPA firm)* 1% TENURE 1-4 Years 11% 5-9 Years 27% Years 36% 20 Years or More 27% * Due to small survey base, other is not included throughout the study AUM <$10M 27% $10M-$49M 41% $50M-$99M 16% $100+M 12% GENDER Male 84% Female 16% Note: Some exhibits within this study may not add to 100% due to rounding. Page 5