sic2016presentation - reynolds - 2016 us sic advisor relations - slide share
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© 2016 Information Services Group, Inc. All Rights Reserved.
© 2016 Information Services Group, Inc. All Rights Reserved.
The Evolving State of Advisor Relations Programs
Paul Reynolds
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Agenda Research methodology and demographics Advisor Relations team sizes Advisor Relations budget trends Advisor Relations strategy Targeted information for the Third Party Advisory community
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Survey Methodology
Who: Advisor Relations professionalsWhat: 15-minute online surveyWhen: Completed in August 2016
Why: Internal planning
Results:45 companies participated, 88 individuals 75% company response rate
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As service providers invest in the channel, team sizes continue to expand globallyAdvisor Relations Team Size
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Advisor Relations Industry
60Service Providers
199
Advisor Relations professionals
Across There are
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2016 Team Size Projections (last year’s results)Large
Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
3.3
4.9
0.8
2.0
5.5
8.8
1.6
3.3
2013 2016e
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2016 Projected Team Sizes vs. Actual Team SizesLarge
Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
3.3
4.9
0.8
2.0
5.5
8.8
1.6
3.3
2013 2016 actual
8.8
4.8
1.8 2.4
2016e
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Teams in 2017 to Reach ExpectationsLarge
Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
3.3
4.8
0.8
1.8
5.5
8.8
1.6
2.4
2013 2017e
9.8
6.3
2.2 2.9
2016
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Variances in 2017e Advisor Relations Team SizeLarge
Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
1.0
15.0
1.0
5.0 6.0
14.0
1.0
7.0
Min Avg Max
6.3
2.2
9.8
2.9
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Growth in Global Advisor Relations Team Size
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
+56% +50% +60% +50%
Growth is from 2016 to 2017
53%
+2.6
of companies will expand their Advisor Relations teams in 2017
is the average FTE increase among those that will expand
+3.8 +2.3 +2.0 +1.9% Will Grow
FTE Growth
Average
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Expansion by Geography
1.5 0.6
0.4
USAEMEA
Asia Pacific
+2.6
is the average FTE increase among those that plan to expand
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2017 Planned Expansion by Company Type
Americas EMEA AP GlobalLarge Western 2.6 1.0 0.2 3.8Small Western 1.5 0.5 0.3 2.3Large Indian 1.0 0.7 0.3 2.0Small Indian 0.6 0.4 0.9 1.9
+2.6
is the average FTE increase among those that plan to expand
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As team sizes grow, budgets are increasing accordingly to help enable their success
Advisor Relations External Spending
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External Spending on Advisor Relations
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
$773K
$433K
$1.6M $398K
$685k
Average external spend on Advisor Relations programs in 2016
25%75%
25%75%
0%100%
25%75%
Average Spending
Below $100K
Above $100K
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Expected Increases in External Spending
Large Western Heritage
Small Western Heritage
Large Indian Heritage
Small Indian Heritage
45% 78% 60% 60%
Growth is from 2016 to 2017
60%
of companies will increase their external Advisor Relations spending in 2017
+28% +24% +13% +18%
% Will IncreaseAverage Increase
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Drivers for Investment
Open-ended question grouped into these categories
Expansion into new regionsIncreased focus on large deals
Inc understanding of our capabilitiesSeek more strategic engagement
Support corporate growth initiativesSeek increased interaction levels
Invitation rateChannel Commitment
8%8%
10%10%10%
15%19%
35%
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Drivers for Investment“…executive understanding of the value of this strategic channel …”
“…greater alignment of our strategic direction with the influence of advisors…”
“…the organization's awareness of the importance of the TPA channel as a source of new business opportunities and as a mean to a structured approach to
renewals…”
“…we're seeing more impact and plan to invest accordingly…”
“…investment in staying top of mind for the advisor community, more opportunity for invites, better win rates and the ability to understand where and how best to
win with the advisor community…”
Select open-ended responses
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Changes in Types of Services Purchased
(39%) Advisor access and education (briefings, workshops)
Relationship building events (dinners, events)
(36%) Databases/ market data/ research subscription
(6%) Sales support and training (methodology training)
(4%) Industry awards, reprint rights to published reports
(3%) Sponsorship of TPA sponsored events
(3%) Custom research / consulting projects
18%41%
58%
22%
69%
47%
17%
Percent increasing their budget for these services
Sorted in order of how budgets are allocated (Source: 2015 ISG Advisor Relations Industry Research)Not shown: (7%) Attendance at industry conferences (IAOP, SIG)
Budget Allocation Budget Items
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Service providers invest in the third-party advisory channel to improve invite and win rates
Return on Investment
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Awareness Framework
Awareness
Familiar, need more info to consider for a deal
Understanding
Know well, can ID appropriate deals for them
Trust
I feel comfortable inviting them to a deal
Advocacy
Proactively recommend them to my clients
“Trust is not a matter of technique, tricks or tools but of character.
It is built and maintained by many small actions over time.”11Inc. Magazine
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Advisor Relations Strategic Approach
Team
Siz
e
External Spending
+
+-
-
Investing
Trailing
Willing
Trying
54% - 38%
21% - 5%
76% - 56% 36% - 11%
47% - 26%
13% - 3%
48% - 25%
11% - 3%
Source: 2015 ISG Advisor Awareness Framework Research results
AwarenessUnderstandingTrust Advocacy
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Advisor Relations Strategic Approach
Team
Siz
e
External Spending
+
+-
-
Investing
Trailing
Willing
Trying
16%
25%
51%
8%
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Providers strive to provide market influencers with appropriate information, but aren’t always effective
Information Shared
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Information Shared with Advisors
Mailed hard copies
Thought leadershipPress releases
Acquisition / capabilities updates
Inquiries/workshops
16%41%
63%64%
74%81%
89%90%93%94%
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Information Creation
Mailed hard copies
Thought leadershipPress releases
Acquisition / capability updatesInquiries / workshops
38%33%
64%8%
39%12%
46%17%
79%36%
61%64%
30%70%
53%81%
45%52%
9%28%
0.056603773584
9057
0.155844155844
156
0.225
17%
16%
14%
Advisor Relations Marketing Sales Other
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Key MessagesDifferent audiences want different types of information…
Asked in an open ended fashion, responses categorized and aggregated
Advisors AnalystsCapabilities
Case Studies
DifferentiationClient Experience
Consideration Sweet SpotsRecent Wins
CapabilitiesCase Studies
Statistics – Revenue, etc. Strategy
DifferentiationTrends, Market Insights, Thought Leadership
Top Mentions
Close Second
Worthy Mention
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Key MessagesHow ISG advisors would prepare for a briefing if they were briefing ISG:
Asked in an open ended fashion, responses categorized and aggregatedISG responses come from an internal ISG survey of advisors, n=155
Advisor Relations Says
Advisor Community SaysCapabilities
Case Studies
DifferentiationClient Experience
Consideration Sweet SpotsRecent Wins
CapabilitiesClient ExperienceCase StudiesDifferentiationReferences
Key Strengths
Top Mentions
Close Second
Worthy Mention Recent Wins
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What advisors have to say… Clearly articulate solution(s) for the topic of the briefing; Highlight features/offerings that differentiate provider from others
in the industry, what makes them unique; Without going into great detail, provide case studies that explain
the key elements of how the provider was able to bring benefits (save money, faster time to market, better customer experience) to their client(s)
Offerings - What do we offer and provide, References - Examples of where our offerings and services were
deployed, Value achieved - How did our solution drive value for the clients, Competitive advantage - Why our solution compared to others
“
”
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Differences among Message Recipients
Advisors Analysts
Where can I recommend you for client consideration?
How do you fit into the competitive ecosystem I
am writing about?
Clients
How can you help me solve my business issue?
Perform on deals; demonstrate your experience through case studies and references
Provide measurement statistics; share your strategy, vision, and capabilities so they
understand how you fit into the market
landscape
Demonstrate your industry knowledge and
how you have helped others with similar
problems
What do they care about?
How do you best demonstrate your credibility?
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Key Takeaways
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Key Takeaways Advisor Relations team sizes continue to expand, and at an increasing pace
(53% will expand their teams in 2017, by an average of 2.6 FTE, expansion occurring across all provider types)
Advisor Relations budgets also continue to grow, and spending on programs continues to accelerate ($685K avg spending, 60% expect to grow in 2017 by an average of 20%)
One quarter of outsourcing service providers invest in their programs at a rate that exceeds their peer group (‘investing’ group)
Providers in the ‘investing’ group see ROI with stronger results on the ISG Awareness Framework, including Advocacy rates twice as high as those in the ‘willing’ group
Service providers need to continue to adjust their education content to align better with the needs of the third-party advisory community
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