10 tips for a successful ae pricing strategy
TRANSCRIPT
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10 Tips for a Successful Auto Enrolment Pricing Strategy
How to choose an pension scheme that suits your AE pricing strategy
By Karen Bennett
By Mat Castle
By Karen Bennett
10 Tips for a Successful
Auto Enrolment Pricing Strategy
By Mat Castle
How to choose a pension scheme that suits your AE pricing
strategy
Q&A SessionQuestions Tab or #BPWebinars
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REC
Q&A
10 Tips for a Successful AE Pricing Strategy
UK Payroll Landscape
Auto Enrolment as
a Service
Communicating with Clients
Customer Feedback
AE Value Proposition
Charging Hourly Cover Costs
Automate & Streamline
AE
Discount Promotion
Pricing Options
Cross Selling Opportunity
BrightPay’s Approach
Agenda
UK Payroll Landscape
Entitled Workers
Non Eligible Jobholders
Eligible Jobholders
Auto Enrolment Overview
Eligible Jobholders • Aged between 22 and State Pension
age• Earn more that £10,000 per year• Work, or ordinarily work, in the UK
Auto Enrolment Overview
1. Set up a pension scheme
2. Assess employees
3. Communications
4. Ongoing duties
5. Declaration of Compliance
Auto Enrolment Responsibilities
Lack of Understanding• Large and medium employers: HR personnel to help
with auto enrolment
• Small and micro employers: lack of in-house expertise
• Majority of employers yet to stage will not have the knowledge or experience to make informed AE decisions
Lack of Understanding• Information overload - confused,
bewildered and overwhelmed
• Expected that 78% of these will turn to an accountant, bookkeeper, or payroll bureau for advice and counsel
• Gift wrapped business opportunity
Auto Enrolment as a Service
Auto Enrolment as a Service
Employers with less than 50
employees
of an accountants client base is made up
of:
90%
• Are you ready or prepared to take on auto enrolment business?
• What level of support / information will you offer?
• Are you prepared for employers coming to you last minute?
Auto Enrolment as a Service
• A number of advantages to offering AE as a Service. • By offering AE as a chargeable service, bureaus can:– Enhance client relationships– Add additional revenue streams– Provide added value to your existing clients – Bring new clients on board– Benefit from a competitive edge
Auto Enrolment as a Service
10 Tips to Successfully Increase AE Prices
Communicate with Clients
Communicate with Clients• Explain the price increase and justify the client benefits• Pre-assessment report:
Communicate with Clients• Clarify the new pricing structure, specify the date at which
it will come into effect and explain the benefits• Meet with clients to outline who is responsible for each
task• Early and clear communication is key to successfully
increasing prices• Outline the additional work and expertise required
Customer Feedback
Customer Feedback• Seek advice from your best
customers and explain how your business is adapting
• Clients are less likely to complain if they feel like they are being listened to
• Expect complaints - listen to their concerns and explain why you are increasing your prices
Value Proposition
Value Proposition for your Clients
1.Time saving
2.Cost saving
3.Focus on core areas
4.Expertise
Charging Hourly
Charging Hourly?• Charging hourly will reduce
efficiency compared with charging per AE task
• You want to maximise your earning potential by charging per client
• AE technology allows you to work more productively than ever and increase profits
Cover Costs
Cover Costs• Increased prices will need to
cover any additional costs incurred for processing AE
• Shop around for payroll software that offers automated AE functionality at no extra cost
• Ensure that your pricing structure exceeds your operational costs
Automate and Streamline
Automate and Streamline• Automation of AE tasks offers bureaus many advantages• The faster you process each client through AE, the more
you will increase productivity and revenue• Use payroll software to automate AE tasks – reduces
processing time, increases accuracy and reduces human error
• Ensure the software will provide the necessary functions to automate AE
Discount
Discount• Increase fees but offer a discount • Clients are more likely to focus on how much they save
rather than how much extra they need to pay• Don’t forget about your
loyal customers – consider a reduced rate for this segment
• Discount window helps increase early adoption rates
Pricing Options
Pricing Options• A range of pricing packages will allow clients to evaluate
each one and choose the package that most suits their needs
• Clients can choose what they want to pay for and what they would like to outsource to you.
• Be sure to increase your prices enough so that you won’t have to do it a second time in the following year
• Prices vary across the market
• Employee Assessment• Enrolling Employees Tier 1
• AE Communications Tier 2
• Processing opt ins/outs Tier 4
• Postponement• Declaration of Compliance• Ongoing AE duties
Tier 3
How to charge for AE services?
AE Pricing Webinar• Monthly Retainer Fee• Price List Strategy• A clear pricing structure will allow any bureau to cost and
schedule auto enrolment duties for each client• Thursday 24th March:
3 unique Auto Enrolment pricing strategies
Cross Selling Opportunity
Cross Selling Opportunity• Opportunity to cross sell other
services to a new platform - part of your strategic growth plan
• Employers will be happier to consolidate all their outsourced services to one person or advisor
• A great way to increase revenue from the same number of clients
Take Action
Take Action• Make sure your clients know you are providing auto
enrolment as a chargeable service• Your clients will be surprised if you don't increase your
charges, especially with the additional setup time initially required
• Option to increase your charges for new clients only• Test on one or two clients to find potential sales barriers• Auto enrolment training
BrightPay’s Approach
By Mat Castle
How to choose an pension scheme that suits your AE pricing
strategy
http://bit.ly/1OQB7gj
http://bit.ly/1RkznQg
http://bit.ly/1TD32 HH
Tuesday 8th March @ 11.00 am
https://www.brightpay.co.uk/events/1039/
Payroll Bureaus Guide to Profit from Auto Enrolment
By Paul Byrne
99.3%Customer
satisfaction rate
99.5%Describe interface
as user friendly
98.8%Would recommend
BrightPay
98.5% Satisfied with
Customer Support
Accredited by ICB - Read here
“The BrightPay user interface is superb and makes data capture
painless.”“The language used is easy to
understand and minimises the use of payroll jargon.“
Questions & Answers
For more information visit www.brightpay.co.uk or phone 0845
3004 304