Standing Out From the Crowd

Being a specialist retirement plan adviser is no longer the advantage it once was, because of the increased level of competition. Therefore, creating a unique message is critical to achieving success. Brandon Shea, managing director and defined contribution investment only (DCIO) national sales manager at RidgeWorth Investments, spoke to PLANADVISER about the challenges advisers face in developing their brand and how they can stand out in the crowd.

PA: What are some of the biggest trends influencing retirement plan advisers?

Shea: Four trends I’m seeing are: the continued consolidation to the true retirement plan professional; the need for “trackable” outcomes for participants; the need to articulate a clear value proposition; and the growing appetite for custom target-date solutions.

The consolidation to the retirement plan professional has been driven by fee disclosure and the fee compression advisers have been experiencing on their plan business. We’re seeing a lot of one- to two-person teams join up with larger, plan-focused advisory teams to achieve economies of scale with back office support, marketing efforts and technology.

The ability to demonstrate positive outcomes when it comes to plan participants is really important. If an adviser enhances the probability score of retirement readiness for participants—i.e., increasing plan participation or deferral rates—that can be a very meaningful differentiator and help that adviser define his value proposition.

From a fiduciary perspective, the appetite for custom target-date fund (TDF) options is growing among sophisticated advisers for many reasons, including the demand for glide paths to match a plan’s demographics, more control over the investment choices and asset allocation.

PA: How do these trends relate to advisers winning new business?

Shea: Plans have become more complex; and plan sponsors are becoming more aware that they need competent guidance and support, so successful advisers need to continually upgrade their knowledge.

To really stand out and attract prospects, advisers need to execute an intelligent branding strategy, which is why RidgeWorth created the PHD Personal Branding program. Advisers have to be clear about the value they’re delivering with their brands. Advisers want to have a coordinated effort to make sure that their brands are consistent—in advisers’ statements of services, in their personal or team biographies on their websites and in social media. If advisers are not where they want to be in business, it’s because they’re not in front of the right people, or the right people don’t appreciate their value. RidgeWorth’s PHD branding process can help advisers think about the quality of their networks and then provide ideas on how to upgrade their networks. Finally, advisers need to stay in constant contact with their centers of influence. 

PA: How is technology changing advisers’ practices?

Shea: Technology can help advisers achieve leverage in multiple areas: efficiency and enhanced service; customized education; profitability assessment in defense of your fees; and pipeline.

Tech-savvy advisers can be more efficient and solution-oriented when they’re in the field with clients. With cloud-based technology, Web-enabled tablets and smartphones, they bring the storefront into the client’s environment. By accessing a client relationship management system or an electronic vault built to house plan sponsor documents, advisers and plan sponsors can pull up committee meeting minutes, plan and compliance documents, investment lineups, performance data and reporting documents, all at a moment’s notice.

Technology is allowing advisers to actively engage in the lifecycle of plan participants and customize educational material to their interests and needs. If participants complete a financial wellness assessment to identify their personal interests and goals, advisers can then send targeted education to participants who have expressed interest in certain topics, such as college savings plans or retirement income options. Once a digital library of material has been built, advisers can deliver these personalized solutions on a large scale in multiple locations.

As advisers look to measure profitability, top teams I’ve worked with use technology to measure revenue targets for each plan. Utilizing a client relationship management system to track every client interaction, these advisers can pull up an annual report for all the services rendered for each client in a calendar year. If a plan sponsor questions fees, the adviser can simply show a detailed report of all activities that are seen by the client (meetings) and unseen (emails, phone calls) taking place on an annual basis. And if a plan sponsor continues to pressure the adviser to lower fees, the adviser can say, “Here’s a list of all the services we provide, what would you like removed to offset the fee reduction?” Being able to have this kind of conversation is empowering.

Lastly, in terms of pipeline, technology like LinkedIn is phenomenal. The advanced search capabilities allow an adviser to uncover new centers of influence in specific geographies, industries and plan sizes where they may have a niche.

PA: How can advisers keep up with all of these technology trends?

Shea: Advisers should attend at least one industry conference a year, so they can network with their peers, hear best practice panels and learn how elite advisory teams use technology to enhance their practice.

Then, advisers should look to their DCIO wholesalers and ask them what other teams are doing. It’s our job to network with the top practices in the area, and we see on a daily basis what separates elite producers from average producers—how they market themselves differently, how they use technology efficiently.

Lastly, I recommend advisers work with quality partners. RidgeWorth offers investment excellence, great practice support and true partnership. We’re confident that the tools we offer, such as PHD Personal Branding, can help advisers dedicated to investing in themselves and their practices.