sic2016presentation - reynolds - 2016 us sic advisor relations - slide share

© 2016 Information Services Group, Inc. All Rights Reserved.

The Evolving State of Advisor Relations Programs

Paul Reynolds

© 2016 Information Services Group, Inc. All Rights Reserved 33

Agenda Research methodology and demographics Advisor Relations team sizes Advisor Relations budget trends Advisor Relations strategy Targeted information for the Third Party Advisory community


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


As service providers invest in the channel, team sizes continue to expand globallyAdvisor Relations Team Size


Advisor Relations Industry

60Service Providers

199

Advisor Relations professionals

Across There are


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


2016 Projected Team Sizes vs. Actual Team SizesLarge

Western 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


Teams in 2017 to Reach ExpectationsLarge

Western 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


Variances in 2017e Advisor Relations Team SizeLarge

Western 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


Growth in Global Advisor Relations Team Size

Large Western 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


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


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


As team sizes grow, budgets are increasing accordingly to help enable their success

Advisor Relations External Spending


External Spending on Advisor Relations





$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


Expected Increases in External Spending





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


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%


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


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


Service providers invest in the third-party advisory channel to improve invite and win rates

Return on Investment


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


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


Advisor Relations Strategic Approach

Team

Siz

e

External Spending

+

+-

-

Investing

Trailing

Willing

Trying

16%

25%

51%

8%


Providers strive to provide market influencers with appropriate information, but aren’t always effective

Information Shared


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%


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


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


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


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

“

”


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?


Key Takeaways


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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sic2016presentation - reynolds - 2016 us sic advisor relations - slide share

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