1. PROFIT THROUGH PARTNERSHIP WAVE 5
A molecular analysis of provider and platform business and technical support 1

2. INDUSTRY BRAND EQUITY SCORES (10 = STRONGLY AGREE)
FOREWORD
BOOTS ON THE GROUND
Yet boots on the ground have been reduced significantly as Exec teams seek to manage the numbers and boost short term profits. Unfortunately it has been proven to be incredibly difficult to cut your way to success. When a provider cuts front line staff to increase profits there is (or at least the very real risk of) corresponding disruption to vital relationships unless CRM systems are seamless. Few are. This is all the more alarming when we consider that, to many advisers, provider consultants represent more than just a valuable conduit to knowledge and support. They are the brand. And so when they are ushered out of the door as part of cost ‘rationalisation’, along with them goes your entire brand equity – which doesn’t seem particularly rational and is reflected, in the low industry brand equity scores from this wave of research.
This, though, does provide an opportunity for providers and platforms that can get their brand proposition right to really stand-out in the market. Investment in the right areas, hence, will have a positively disproportionate return.
BRANDS DON’T CARE ABOUT YOU
While there are certain supports that are both stated and unstated (but important) needs – things like the ability of consultant and central support teams to resolve problems - there are certain unstated needs that we know have a far bigger impact on advisers at the point of deciding which provider or platform to use. These factors (consultant likeability, events and online content) are what will truly differentiate.
With margin pressures, and incessant industry chatter about all things robo, there is a tendency to over- emphasise the importance of technology, processes, and supply chain efficiency. This is understandable but only part of the picture.
Without people, every patent in the world would be worthless and financial services is no exception – it is people (advisers and their clients) who make the decisions about what to buy, when and from whom.
Institutions don't care about you either. The only people who are able to care about you are people, so says American author Seth Godin.
The question, then, is “is this institution owned and organised and run by people who will allow the people who work there to care?”
Generally, the answer is 'no', because caring is unpredictable, hard to command and regulate and sometimes expensive in the short run. That’s a great shame because the long term upside is huge.
INDUSTRY BRAND EQUITY SCORES (10 = STRONGLY AGREE)
They are a provider I would genuinely miss
7.07
They are a ‘go-to’ provider – where relevant to needs
7.09
There is no one quite like them
6.15
They represent fantastic value for money
6.62
They genuinely care about my business
6.23
INFLUENCE OF PEOPLE
Our latest wave of adviser research (Profit Through Partnership) reveals the growing importance and influence of provider and platform consultants on advisers. That’s not to say that support of the right kind and quality is widely available or accessible (it’s not). But there is a strong and positive relationship between the delivery of relevant business support and adviser propensity to do business with those firms able to supply it. And it’s getting stronger, fuelled, in part, by scarcity.
All successful companies revolve around human needs because people are the ultimate consumers of every product and service.

3. Objectives
Our adviser engagement programme is uniquely designed to improve the effectiveness of adviser facing activity. Through robust, unbiased and informed discussion with the advisers providers want to do business with, Profit through Partnership will:
Identify the levers of business and technical support that will have the biggest positive impact for providers & platforms
Clearly Benchmark providers & platforms against a) support imperatives and b) resource commitment / market spend in each support area.
Point clearly to the optimal blend of support services required to meet and exceed business objectives with the advisers you want to do business with.
Enable providers & platforms to plan and deploy resources with greater confidence that they will deliver the desired outcomes.
WHAT DO WE MEASURE?
Positive and negative brand recall, associations and what drives these perceptions.
Brand equity ratings for providers (as scored by advisers).
The claimed and statistical importance of the whole suite of: consultant support, central support and central resources – along with what is driving these views.
The areas of support that advisers would like to see providers place greater focus on
How that support is best delivered
How providers compare against each other and the market as a whole across 15 specific support areas
What drives propensity to do business (satisfying conscious and sub-conscious needs)
Opportunities for valued differentiation 1. 2. 3. 4.

4. From holistic financial planning businesses
Methodology
101 advisers representative of the market were sampled from a robust panel of circa 16,000 advisers from our growing database. The sample comprised advisers who were:
Nationally representative sample of firms in terms of number of RI’s, geography and AUM
From holistic financial planning businesses
All interviews were conducted by telephone, lasting 30 minutes on average.
Interviews were conducted during June and July 2016.
Participating advisers were offered access to online client facing material from Technical Connection in return for their participation.
Individual anonymity agreed.

5. Respondent Profile (1)
Q. How many RIs are there in the business?
Q. Approximate AUM at a firm level?
Closely mirroring the overall profile of adviser firms in the UK the vast majority (78%) have between one and five registered individuals providing advice.
In terms of assets under management at a firm level, two thirds of the sample (65%) have £20m+, while over a third manage £50m or more.

6. Respondent Profile (2)
Q. Which of the following describes your firm?
Q. Which of the following describes your role?
There has been a slight drop in the % of purely independent firms over the last three waves.
As was the case during the previous wave of the study, the bulk of advisers remain independent (81%) – though we have seen a slight but steady fall in the proportion of purely independent advisers over the last three waves. Just over one in ten (11%) have adopted a restricted whole of market approach (despite concerns from adviser and consumer enclaves about the term).
Reflecting the predominantly independent status of firms, the vast majority of advisers engaged through the study were Directly Authorised (73%), with just over one in four (27%) being Appointed Representatives.

7. Contents 8 33 65 53 24 SPONTANEOUS BRAND RECALL PROVIDER BENCHMARKING
BUILDING BETTER SUPPORT 9 10 11 12 13 14 19 23
HEADLINES
TECHNICAL SUPPORT
WHAT DRIVES GOOD?
BUSINESS SUPPORT
BRAND EQUITY
THE PERSONALITY TEST
IMPLICATIONS 34 35 36 41 46 51
HEADLINES
OVERALL LEADERBOARD
CONSULTANT SUPPORT
CENTRAL SUPPORT
CENTRAL RESOURCES
THE IMPACT 66 67 71 72 73 75 78
HEADLINES
IMPORTANCE V. PERFORMANCE
VALUED DIFFERENTIATION
PROPENSITY TO WORK WITH
PERFORMANCE VS. PROPENSITY
CLAIMED VS. DERIVED
IMPLICATIONS 53 24
CONSULTANT SUPPORT (FOCUS)
BUSINESS IMPERATIVES
HEADLINES
IMPORTANCE OF SUPPORT (CHANGES)
CLAIMED IMPORTANCE BY TYPE
EXPECTATIONS BY IMPORTANCE
IMPLICATIONS
HEADLINES
WHY REMOTE SUPPORT ISN’T QUITE ENOUGH
DELIVERY MECHANISMS
EXPECTATIONS BY PROVIDER
PROVIDER STRENGTHS AND WEAKNESSES
CONSISTENCY
IMPLICATIONS 54 55 56 57 59 62 64 25 26 27 31 32

8. SPONTANEOUS BRAND RECALL SECTION 1 This section explores:
Who advisers say – top of mind – they associate with excellent business and technical support
What those providers & platforms that stand out do well, in the eyes of advisers
Brand strength - how advisers perceive provider and platform brands

9. HEADLINES Section 1: Spontaneous Brand Recall
The power of marketing: It is some of the biggest names in the industry that appear to resonate most thought the power of marketing is likely at play as spontaneous recall doesn't always tally with strong performance
The Meh factor: The industry is not currently performing as it could / should with regards to brand equity, which is distinctly so-so.
A disproportionately positive return up for grabs: This, though, does provide an opportunity for providers and platforms that can get their proposition right to really stand-out in the market.
Make yourself miss-able: Our correlation analysis shows that focusing on making a difference pays dividends as those providers that advisers would genuinely miss have the highest adviser scores when it comes to propensity to do business.
1-10 (where 10= strongly agree)
They are a provider I would genuinely miss
7.07
They are a ‘go-to’ provider – where relevant to needs
7.09
There is no one quite like them
6.15
They represent fantastic value for money
6.62
They genuinely care about my business
6.23

10. Thank you We look forward to exploring the opportunities with you.
Phil Wickenden, MD, Cicero Research m: 10