10/26/2009
CAN YOU RETIRE - "BEYOND RISK?"
To learn what we do and who we are visit:
Beyond Risk at: http://www.beyondrisk.blogspot.com
Linkedin at: http://www.linkedin/in/danzwicker
We don’t sell.
We solve problems.
Check our credentials.
Call or email us and we’ll be pleased to help.
Dan Zwicker, CFP
Bus: 416-726-2427
Email: danzwicker@rogers.com
We are linked to the best and the brightest professional financial retirement practitioners in Canada.
10/20/2009
SUN LIFE CREATES ADVISOR MATCH SERVICE
It may not be as scintillating as online dating services, but Sun Life has entered the matchmaking business creating Advisor Match, a website that matches up clients with advisors based on compatibility.
"Through focus groups, consumers told us that the recent recession has changed what they're looking for from companies they deal with for financial and insurance needs," says Lori Bak, vice-president, marketing with Sun Life Financial Canada. "We listened to Canadians and built an online resource based on what they told us was important to them when it comes to finding an advisor."
Advisor Match will be is an easy-to-use application that allows Canadians to input information that is used to filter potential advisor matches. Research indicates that age, gender and language preferences are significant factors for a successful advisor relationship. Based on this and additional criteria, Advisor Match provides up to 12 potential advisor candidates and allows customers to decide if they want to contact the advisor of their choice or if they would like the advisor to contact them.
Kevin Strain, senior vice-president of individual insurance and investments for Sun Life Canada, emphasized that the matches are designed to be long-term relationships.
"A lot of these relations last decades if not through generations. We have advisors who are third-generation advisors, their grandfather worked with their family advisor and now they work with the family advisor," Strain says. "We looked at criteria that form the foundation of long-term relationships; location was obviously one—you want somebody who is close to you, age was important—what life stage you're in, other factors such as gender, language and affluence sometimes also played a role."
Strain says that the M.O. of successful relationships seems to form around similar life situations.
"We've found really what people are looking for is someone who is in a similar situation to them," he says. "They understand what the other person is going through—that tends to form the basis of long-term relationships."
Over the next few months Sun Life will promote their Advisor Match service in a national advertising campaign. Strain says the program has 1,500 participating advisors in 349 communities across Canada. More than 50 different languages are spoken by Sun Life advisors and all of the advisors in the program will have both insurance and mutual fund licenses.
While the advertising campaign should increase awareness of the program to retail Canadian investors, the website may end up being just as valuable for group plan sponsors. Value-added advice for group plan members has been an increasing concern, particularly for retiring members. This service can be used for some institutions to match up plan members with an advisor, Strain says.
A group client that was sold by an advisor—a corporate account—we already work with that group business and the advisor would continue to work with the client is in that basis. We don't disrupt that," he says. "Where there are situations where there is a group client that doesn't have an advisor attached to it, we've tried to match clients up with an advisor. Right now, were in the process of replacing our Find an Advisor tool with Advisor Match."
Strain adds, "We have research that shows that Canadians derive financial benefits with working with advisors. Eighty-six percent of Canadians say they make better decisions about their finances when working with an advisor, 83% say they are more confident about their finances and 82% they will have a better a retirement if it's created with an advisor. We want to help all [our customers] link to advisors who will help create that value for them."
Advisor.ca
10/20/2009
"Through focus groups, consumers told us that the recent recession has changed what they're looking for from companies they deal with for financial and insurance needs," says Lori Bak, vice-president, marketing with Sun Life Financial Canada. "We listened to Canadians and built an online resource based on what they told us was important to them when it comes to finding an advisor."
Advisor Match will be is an easy-to-use application that allows Canadians to input information that is used to filter potential advisor matches. Research indicates that age, gender and language preferences are significant factors for a successful advisor relationship. Based on this and additional criteria, Advisor Match provides up to 12 potential advisor candidates and allows customers to decide if they want to contact the advisor of their choice or if they would like the advisor to contact them.
Kevin Strain, senior vice-president of individual insurance and investments for Sun Life Canada, emphasized that the matches are designed to be long-term relationships.
"A lot of these relations last decades if not through generations. We have advisors who are third-generation advisors, their grandfather worked with their family advisor and now they work with the family advisor," Strain says. "We looked at criteria that form the foundation of long-term relationships; location was obviously one—you want somebody who is close to you, age was important—what life stage you're in, other factors such as gender, language and affluence sometimes also played a role."
Strain says that the M.O. of successful relationships seems to form around similar life situations.
"We've found really what people are looking for is someone who is in a similar situation to them," he says. "They understand what the other person is going through—that tends to form the basis of long-term relationships."
Over the next few months Sun Life will promote their Advisor Match service in a national advertising campaign. Strain says the program has 1,500 participating advisors in 349 communities across Canada. More than 50 different languages are spoken by Sun Life advisors and all of the advisors in the program will have both insurance and mutual fund licenses.
While the advertising campaign should increase awareness of the program to retail Canadian investors, the website may end up being just as valuable for group plan sponsors. Value-added advice for group plan members has been an increasing concern, particularly for retiring members. This service can be used for some institutions to match up plan members with an advisor, Strain says.
A group client that was sold by an advisor—a corporate account—we already work with that group business and the advisor would continue to work with the client is in that basis. We don't disrupt that," he says. "Where there are situations where there is a group client that doesn't have an advisor attached to it, we've tried to match clients up with an advisor. Right now, were in the process of replacing our Find an Advisor tool with Advisor Match."
Strain adds, "We have research that shows that Canadians derive financial benefits with working with advisors. Eighty-six percent of Canadians say they make better decisions about their finances when working with an advisor, 83% say they are more confident about their finances and 82% they will have a better a retirement if it's created with an advisor. We want to help all [our customers] link to advisors who will help create that value for them."
Advisor.ca
10/20/2009
10/18/2009
COMMERCIAL SOCIAL MEDIA - A REAL TIME MARKETING PARADIGM SHIFT
.......is the collaborative use of 'viral' one to one digital 'word of mouth' referrals to generate revenue.
It is NOT about advertising.
It is not about sales.
It is about social engagement.
It is about giving.
It is genuine.
It is voluntary.
It is consumer centric.
It is pull - not push.
It is effective.
It is here.
It's skilful use was instrumental in the election of President Obama.
We are proactively engaged.
It is NOT about advertising.
It is not about sales.
It is about social engagement.
It is about giving.
It is genuine.
It is voluntary.
It is consumer centric.
It is pull - not push.
It is effective.
It is here.
It's skilful use was instrumental in the election of President Obama.
We are proactively engaged.
10/15/2009
TECHNOLOGY CHANGES CLIENT INTERACTION
The growing popularity of smart phones is changing the way consumers prefer to communicate with the financial services sector, according to a new study from Telus and IDC Canada.
As laptop ownership has moved into the mainstream (overall ownership reached 49% in 2009, according to the report), smart phones are moving stealthily in popularity and are having an impact on how consumers are interacting with one another and their service providers.
Ownership levels of smart phones have risen to 14% in 2009, from 8% in 2007, when an earlier version of the white paper was published, according to the data. More importantly, the desire to own a smart phone has risen among the younger population: 55% of those aged 13 to 17 want one, so do 40% of 18- to 24-year-olds.
The changing technology has allowed consumers to surf the internet on their morning commutes, access email from the airport and run applications such as stock-trading platforms while in a hotel room halfway around the world.
"Sooner or later, the financial institutions will start looking at these communication tools and start incorporating them into their IT practices," says Ismali Pishori, vice-president of vertical marketing at Telus.
However, age is no longer the predictor of interaction behaviour between a customer and the financial services sector, according to the research. The notion that someone in his 70s is not a technology-savvy individual is a mistake for a financial institution to make, says Pishori. "Age is no longer an indicator of how one behaves."
The ability of service-driven institutions to use multiple means of communicating is putting greater pressure on financial institutions to provide similar service.
What this means for client relations
In the case of advisors, the flexibility and ability to use multiple mediums to communicate with the client base, whether through a servicing cycle or through a selling cycle, are important in their communication, says Pishori. He noted that the time is now for advisors to start thinking about communication, not only for their current customer base but also in terms of where they are going to get the next customer.
Dr. Robert Kerton, professor of consumer economics at the University of Waterloo and a consumer issues expert, pointed out that a growing number of consumers want open communication with organizations. While consumers have access to newer technology, there's a growing importance for the financial institutions to meeting those communication styles.
The research revealed that about 60% of respondents are consumers who want new forms of communication with their financial services providers. Only 37% responded as "not interested."
The relationship between financial institutions and their customers has become more difficult in the last decade due to a large portion of customers requiring asynchronous services and a significant portion of customers, 48% according to the data, preferring traditional methods of face-to-face interaction.
"For the financial services sector, service quality is a race between expectation: what you think the institution should do and what they actually deliver technologically," says Kerton.
In the evolving marketplace, the majority of future customers fall into four categories, according to the research. Urban Established, who make up 21% of the communication spectrum, will have an impact on the customer and service provider interaction. Integrated Users, who make up 10%, are likely to use more tools but expect continuous dialogue. While On the Move (9%) and Social Networkers (12%) are two groups that adopt new methods of communication.
Kerton pointed out two key groups, On the Move and Integrated Users, as the ones to watch for future technology and communication trends.
However, when it comes to complaints, a different group comes to the forefront: the Social Networkers.
"They are the ones who can flame you. They are live and online. I would pay close attention if I were a financial institution to that sub-sector just to make sure that my complaint-handling method is a complete success at retaining a customer who, let's say, was insulted," says Kerton.
The next 10 years will be crucial for financial institutions to provide positive consumer experience, as there will be a growing need to balance services between the tech-savvy and the traditional consumer, according to the data.
Anna Olejarczyk
Advisor.ca
10/14/09
As laptop ownership has moved into the mainstream (overall ownership reached 49% in 2009, according to the report), smart phones are moving stealthily in popularity and are having an impact on how consumers are interacting with one another and their service providers.
Ownership levels of smart phones have risen to 14% in 2009, from 8% in 2007, when an earlier version of the white paper was published, according to the data. More importantly, the desire to own a smart phone has risen among the younger population: 55% of those aged 13 to 17 want one, so do 40% of 18- to 24-year-olds.
The changing technology has allowed consumers to surf the internet on their morning commutes, access email from the airport and run applications such as stock-trading platforms while in a hotel room halfway around the world.
"Sooner or later, the financial institutions will start looking at these communication tools and start incorporating them into their IT practices," says Ismali Pishori, vice-president of vertical marketing at Telus.
However, age is no longer the predictor of interaction behaviour between a customer and the financial services sector, according to the research. The notion that someone in his 70s is not a technology-savvy individual is a mistake for a financial institution to make, says Pishori. "Age is no longer an indicator of how one behaves."
The ability of service-driven institutions to use multiple means of communicating is putting greater pressure on financial institutions to provide similar service.
What this means for client relations
In the case of advisors, the flexibility and ability to use multiple mediums to communicate with the client base, whether through a servicing cycle or through a selling cycle, are important in their communication, says Pishori. He noted that the time is now for advisors to start thinking about communication, not only for their current customer base but also in terms of where they are going to get the next customer.
Dr. Robert Kerton, professor of consumer economics at the University of Waterloo and a consumer issues expert, pointed out that a growing number of consumers want open communication with organizations. While consumers have access to newer technology, there's a growing importance for the financial institutions to meeting those communication styles.
The research revealed that about 60% of respondents are consumers who want new forms of communication with their financial services providers. Only 37% responded as "not interested."
The relationship between financial institutions and their customers has become more difficult in the last decade due to a large portion of customers requiring asynchronous services and a significant portion of customers, 48% according to the data, preferring traditional methods of face-to-face interaction.
"For the financial services sector, service quality is a race between expectation: what you think the institution should do and what they actually deliver technologically," says Kerton.
In the evolving marketplace, the majority of future customers fall into four categories, according to the research. Urban Established, who make up 21% of the communication spectrum, will have an impact on the customer and service provider interaction. Integrated Users, who make up 10%, are likely to use more tools but expect continuous dialogue. While On the Move (9%) and Social Networkers (12%) are two groups that adopt new methods of communication.
Kerton pointed out two key groups, On the Move and Integrated Users, as the ones to watch for future technology and communication trends.
However, when it comes to complaints, a different group comes to the forefront: the Social Networkers.
"They are the ones who can flame you. They are live and online. I would pay close attention if I were a financial institution to that sub-sector just to make sure that my complaint-handling method is a complete success at retaining a customer who, let's say, was insulted," says Kerton.
The next 10 years will be crucial for financial institutions to provide positive consumer experience, as there will be a growing need to balance services between the tech-savvy and the traditional consumer, according to the data.
Anna Olejarczyk
Advisor.ca
10/14/09
10/09/2009
FEDERAL LEGISLATION PROHIBITING THE SALE OF INSURANCE ON THE INTERNET
Whereas the tied selling pressure that can be brought to bear on consumers by banks to purchase their property & casualty and life insurance products is clear there is one key issue which mitigates against the banks being able to sell insurance of any kind through their bank branches or via the web.
I will describe the case for the life insurance sector since I can speak to this through my own experience in the industry.
Banks sell commodities - products sold in a transactional environment - in a branch.
Life insurance is not a commodity. It is among the most complex financial instruments in the financial services sector. It requires professionally designated, trained, and fully experienced advisors to offer the optimum value to each client based upon a clear analysis of their unique personal and financial lifestyle and medical circumstances. The engagement of a client is premised upon consummate trust in the advisor's professional qualification and integrity to serve as a financial practitioner.This cannot happen in a bank branch or through a bank website under the current banking distribution model.
.
The basis of the confusion in the current financial services distribution environment, which has had a long history, is this. We are in the most disruptive personal financial environment since the depression. What we need most are financial practitioners. What is available is product promotion without comprehensive planning - in all but a very small segment of the distribution chain. Advisors get paid by selling products. Fee for service advice driven by planning is not the industry MO. The banks and insurance industry as a whole have driven this model for a very long time.
When we are in pain we seek out a physician and want to simply know if "We will be OK".
If the doctor prescribes medication after a diagosis we fill the Rx. In our industry financial 'prescriptions' are dispensed because that is the basis upon which advisors earn a living.
It is not difficult to understand the confusion that the public face in this area of their lives.
In my opinion all of the above has influenced Mr. Flaherty's decision in favour of the new legislation.
I am sharing this with you because I believe it to be a root cause of the dilemma.
I hope it adds some insight with regard to the life sector.
I will describe the case for the life insurance sector since I can speak to this through my own experience in the industry.
Banks sell commodities - products sold in a transactional environment - in a branch.
Life insurance is not a commodity. It is among the most complex financial instruments in the financial services sector. It requires professionally designated, trained, and fully experienced advisors to offer the optimum value to each client based upon a clear analysis of their unique personal and financial lifestyle and medical circumstances. The engagement of a client is premised upon consummate trust in the advisor's professional qualification and integrity to serve as a financial practitioner.This cannot happen in a bank branch or through a bank website under the current banking distribution model.
.
The basis of the confusion in the current financial services distribution environment, which has had a long history, is this. We are in the most disruptive personal financial environment since the depression. What we need most are financial practitioners. What is available is product promotion without comprehensive planning - in all but a very small segment of the distribution chain. Advisors get paid by selling products. Fee for service advice driven by planning is not the industry MO. The banks and insurance industry as a whole have driven this model for a very long time.
When we are in pain we seek out a physician and want to simply know if "We will be OK".
If the doctor prescribes medication after a diagosis we fill the Rx. In our industry financial 'prescriptions' are dispensed because that is the basis upon which advisors earn a living.
It is not difficult to understand the confusion that the public face in this area of their lives.
In my opinion all of the above has influenced Mr. Flaherty's decision in favour of the new legislation.
I am sharing this with you because I believe it to be a root cause of the dilemma.
I hope it adds some insight with regard to the life sector.
IS YOUR SOCIAL MEDIA BEING CONDUCTED BY A NURSE OR A BRAIN SURGEON?
"Forgive the analogy, but I often hear my former peers in Fortune 500 CPG Marketing tell me “we’re doing Social Media” when I ask. The point is this: a nurse and a brain surgeon are both in “medicine”, but I wouldn’t want the nurse operating on my brain. The same is true in the most vital area of your business.
Most typically, major companies have scrambled to assemble teams of classically trained marketing folks like me. I spent 25 years in ‘classical’ Marketing with Nestle, Sara Lee, Coca-Cola, Coors, and sat across the desk with P&G, Kroger, etc. on ‘targeted marketing’ while with Catalina Marketing. The singular issue with ‘classically trained’ marketers is that everything they have ‘experientially’ gained with years of tremendous experience has suddenly become obselete (at least in the application of Social Media). Our instinct (and in some cases self-protectionism) causes many to build on that experience and attempt to retrofit ‘old models’ into the ‘new media’. It doesn’t work!! ‘Old models’ ultimately tell us to ‘push’ our agenda on either a mass or somewhat targeted audience via traditional media choices and paper-dependent incentives (ad features, coupons, DM, etc…). We know these are highly inefficient (FSIs producing <>
A point for discussion is this: Pushing a commercial message is Anti-Social and looses audiences faster than you can change the radio channel or hit fast forward on your TV’s DVR. Social Media, if done right, ‘pulls’ an audience to you. You suddenly find yourself on Page 1 of Google searches. You are engaged with a targeted audience that targeted themselves before you even got to the party. And if you really have that brain surgeon on the team, you can even build businesses and monetize all that chatter…the ultimate goal of business within the SM world."
Tom Nilsen
EVP-Sales & Marketing
Most typically, major companies have scrambled to assemble teams of classically trained marketing folks like me. I spent 25 years in ‘classical’ Marketing with Nestle, Sara Lee, Coca-Cola, Coors, and sat across the desk with P&G, Kroger, etc. on ‘targeted marketing’ while with Catalina Marketing. The singular issue with ‘classically trained’ marketers is that everything they have ‘experientially’ gained with years of tremendous experience has suddenly become obselete (at least in the application of Social Media). Our instinct (and in some cases self-protectionism) causes many to build on that experience and attempt to retrofit ‘old models’ into the ‘new media’. It doesn’t work!! ‘Old models’ ultimately tell us to ‘push’ our agenda on either a mass or somewhat targeted audience via traditional media choices and paper-dependent incentives (ad features, coupons, DM, etc…). We know these are highly inefficient (FSIs producing <>
A point for discussion is this: Pushing a commercial message is Anti-Social and looses audiences faster than you can change the radio channel or hit fast forward on your TV’s DVR. Social Media, if done right, ‘pulls’ an audience to you. You suddenly find yourself on Page 1 of Google searches. You are engaged with a targeted audience that targeted themselves before you even got to the party. And if you really have that brain surgeon on the team, you can even build businesses and monetize all that chatter…the ultimate goal of business within the SM world."
Tom Nilsen
EVP-Sales & Marketing
10/08/2009
IMPARTIALITY IN PROFESSIONAL PRACTICE
In the delivery of financial services the advisor impartiality with regard to product solutions is the fundamental principle behind a fee for service basis of compensation.
Since the financial services industry compensates financial advisors only upon the sale of a financial product the consumer must be made aware that there are 2 compensation choices available in any client/advisor engagement.
Since the financial services industry compensates financial advisors only upon the sale of a financial product the consumer must be made aware that there are 2 compensation choices available in any client/advisor engagement.
- A client paid fee based upon a financial plan solution analysis with no specific product (brand) recommendations.
- A product solution based upon a financial plan analysis with specific product recommendations. The advisor compensation in this instance is paid for by the financial institution whose product is chosen by the client.
With the full disclosure of the choices availabe the advisor can deliver the impartiality that is the hallmark of professional practice.
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