excellence in distribution: external wholesaling
DESCRIPTION
kasina delves into best practices and benchmarking data for External Wholesaling. Recommendations include ideas for optimizing staffing, structure, and process, territory management, technology, and compensation.TRANSCRIPT
Excellence in Distribution: External Wholesaling
December, 2009
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Benchmarking Reports from kasina
+ Costs of Compensation: Sales and National Accounts – August, 2009+ Excellence in Distribution: External Wholesaling is second in series of
benchmarking reports Survey data and secondary research Strategies and recommendations
+ Upcoming reports Internal Wholesaling – January National Accounts – 1st quarter Hybrid Wholesaling – 2nd quarter
Agenda
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Key Levers
+ Sales Force Staffing, Structure, and Selling Process
+ Territory Management
+ Compensation
+ Technology Deployment
Agenda
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33% Of Firms Cut External Wholesalers by 15%+
Excellence in Distribution: External Wholesaling
25%
20-25%
15-20%
6-15%
5% or less
0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%
17%
8%
8%
0%
8%
If you have, or are considering reducing the number of wholesalers you have, how large is the reduction?
% of respondents
©2009 kasina
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Externals Don’t Spend Enough Time Selling
Excellence in Distribution: External Wholesaling
+ 57% is spent on selling & servicing+ 43% on admin, travel, training, internal meetings
Servicing existing clients; 29%
Selling to new prospects; 28%
Administration; 9%
Training & self development; 10%
Internal meetings; 10%
In transit /travel, 13%
How wholesalers spend their time
©2009 kasina
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Managers Opting for Large Territories Lose Focus
Excellence in Distribution: External Wholesaling
+ Average territory encompasses more than three states and 1,550 advisors
+ 42% of managers plan to increase territory size
Increase; 42%
Decrease; 8%
Stay the same; 50%
Do You Plan Any Changes to Territory Size?
©2009 kasina
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Success StrategyIntegrate Technology To Drive Sales
Excellence in Distribution: External Wholesaling
+ Advisors who use firms’ Web sites & have wholesaler coverage average 25% more sales*
+ Train and incent wholesalers to integrate Web, e-mail, CRM in selling
+ Ensure wholesalers are training advisors online and track usage
+ Provide mobile access to Web site, Facebook, LinkedIn and monitor use
*Your Site Can Sell, Too, kasina, 2008
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Compensation is Not Aligned With Business Goals
Excellence in Distribution: External Wholesaling
+ 55% is commission+ 14% bonus leaves managers little discretion to incent profitable activities
Base salary; 25%
Discretionary current cash bonus; 14%Current cash commissions (variable comp.
based on % of sales) 55%
Deferred compensation; 5%Other; 1%
How is the average wholesaler's compensation structured?
©2009 kasina
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Focused, Trusted, Profitable
Excellence in Distribution: External Wholesaling
+ Knowledgeable and trusted business partner to advisors
+ Focused team member with motivated hybrids and internals
+ Avid promoter of Web tools and online information
+ Active contributor to CRM and community Web sites
+ Appropriately coached and fairly compensated
+ Aligned with firm’s business and profitability objectives
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About kasinaOur firm has a singular mission: Innovate distribution in financial services
Excellence in Distribution: External Wholesaling
For more information, please contact:
Andy Edwards Business Development Manager
e-mail: [email protected]: 646 257 4454fax: 212 349 7413