10 tips for a successful ae pricing strategy

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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