Uncharted Territories: Building Your Brand In Your Local 401(k) Market By: Ben Thomason, EVP, Revenue @ Vestwell PROPRIETARY & CONFIDENTIAL TO VESTWELL HOLDINGS / FOR INSTITUTIONAL USE ONLY
AGENDA 1. Efficiency Blueprint 2. Sales & Marketing Tactics 3. Lab: Act Locally 4. Maximizing The Opportunity Beyond 401(k) 5. Q&A 2 FOR INSTITUTIONAL USE ONLY
The opportunity is there 70% - 90% of Plans are Advisor Sold 507k 500k $1.3T $7.8B SMB companies Current SMB 401(k) SMB companies Revenue opportunities for with a plan with NO plan assets w/ less than $50M SMB plans at 60BPS 3 FOR INSTITUTIONAL USE ONLY
The basics: blueprint for efficiency in the 401(k) advisory practice Sales & Marketing Lab: Act Locally Maximizing the Efficiency Tactics Opportunity Blueprint da da da 4 FOR INSTITUTIONAL USE ONLY
Provider and investment consolidation Avoiding key pitfalls: Too many investment options → a. Excessive monitoring 1 da b. Unmanageable quarterly meeting prep . Competing with recordkeepers → a. Where does the wealth business go? 2 da b. How important is participant data? . Preparing for scale → 3 a. Streamlining processes and investments makes scale possible da b. 20% valuation increase if you have a book of business that can scale . 5 FOR INSTITUTIONAL USE ONLY
Client service in the digital age MUST BE 1. Reporting tools Flexible 2. Financial technology providers da da Modern 3. Telecommunication Scalable 6 FOR INSTITUTIONAL USE ONLY
Tactical sales & marketing initiatives for expanding market share Sales & Lab: Act Locally Maximizing the Efficiency Marketing Opportunity Blueprint Tactics da da da 7 FOR INSTITUTIONAL USE ONLY
Tapping into the market • Slow to convert Corporate da • Saturated • 40% of millennials have worked in at a start-up 66% of millennials have no retirement savings • Start-up da 82% of millennials say a retirement plan is a critical factor in deciding whether to take a job • • 83% of companies with 100+ workers offer a retirement plan → important to develop relationships early • 75% of individual investors are interested in sustainable investing; sustainably-minded investment Not-for-profit/ decisions are up almost 20% from 2015 to 2017 da 403b Stacking your investment line-ups with products that matter to prospects can help influence • their decisions • Only 53% of small- to mid-sized businesses, those with five to 250 employees, offer a retirement plan SMB da • There are 30.2 million small businesses in the US 8 FOR INSTITUTIONAL USE ONLY
Tactical initiatives for expanding market share Leveraging Local Opportunities Becoming an Industry Expert Once you identify the largest industries/employers, commit to becoming an expert in • Stay close to your local Chamber of Commerce ● • What industries represent the largest employers? the nuances of that industry • What companies are the largest employers? We’re all experts in our own field, shouldn’t you know your prospect’s buz? ○ da da • Do you have a client wish list? Once you know the business, you can begin asking business partners for referrals ● • What products/services do you buy? Working with Asset Management partners - you can host events that are tailored to ● their industry Attend industry conferences - offer to speak at those events on a related topic ● Automating Polite Persistence Adding Value • Now that you have a dialogue in place with the company, make sure you • Once you have identified the companies you want to work with: understand the tactical administrative realities Be prepared to offer complimentary work product • • Map the entire committee, make sure you understand the political realities • Comparative cost/value da da • Make sure to map the committee’s meeting calendar Legislative/regulatory updates • • TIme your follow up appropriately Provider news and concerns • • Look at your current clients and see if there are connections between them and DIg deep to understand the committee’s needs • the engagements you are trying to win Understand it takes time to win the engagement, so think through 12-18 • months worth of materials 9 FOR INSTITUTIONAL USE ONLY
Lab: tapping into a local example Sales & Marketing Maximizing the Efficiency Lab: Act Tactics Opportunity Blueprint Locally da da da 10 FOR INSTITUTIONAL USE ONLY
Example Client Profile Taking Action 1. Austin Association for Financial Professionals Understand membership; position yourself; 2. Austin Chamber of Commerce reach out to Executive Committee da da https://www.austinchamber.com/economic-development/key-industries Understand membership; choose your 1. National Instruments - Treva Rumbeck industries; pull down data on companies Once you’ve located the companies: map the committees - make the connections 11 FOR INSTITUTIONAL USE ONLY
Maximizing the opportunity: supporting clients across multiple lines E fficiency Sales & Marketing Lab: Act Locally Maximizing the Tactics Blueprint Opportunity da da 12 FOR INSTITUTIONAL USE ONLY
Maximizing the Opportunity Beyond 401(k) Health & Benefits Wealth Payroll Convergence of health and • Retirement and tax benefits • Partnerships • wealth Retirement needs beyond • Plan sponsor da • da da Retirement rated 3 rd most • 401(k) and social security consultation important employee benefit IRA/brokerage • HSA - 402(k) • 13 FOR INSTITUTIONAL USE ONLY
Questions? For additional questions, contact sales@vestwell.com
Disclosures About Vestwell Holdings, Inc. Vestwell Advisors, LLC, a 3(38) and 3(21) SEC registered investment advisory firm, is a wholly owned subsidiary of Vestwell Holdings, Inc., specializing in 401(k) and other defined contribution retirement investment management services. Vestwell assumes 3(38) and 3(16) fiduciary responsibility on the behalf of advisors and firms. Learn more at Vestwell.com and on Twitter @Vestwell. This is not an offer, solicitation, or advice to buy or sell securities in jurisdictions where Vestwell Advisors is not registered. An investor should consider investment objectives, risks and expenses before investing. More information is available within Vestwell Advisors’ ADV. There are risks involved with investing. Investors should consider all of their assets, income and investments. Portfolios are subject to change. All opinions and results included in this publication constitute Vestwell Advisors’ judgment as of the date of this publication and are subject to change without notic e. 15 FOR INSTITUTIONAL USE ONLY
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