Capture The Mass Affluent By Unlocking Sales Force Effectiveness

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Squeezed by increased regulatory pressures, new competitors and an uncertain economy, banks around the world are increasingly looking to generate new revenues and drive growth by catering to the mass affluent market. These consumers – with investable assets of $100,000 to $5,000,000 – numbering millions of households globally, represent a lucrative market.

But there is a major impediment to improving share of wallet with this segment: banks’ own sales force. Too often, many banks miss opportunities to win investment assets from customers and prospects because they haven’t optimized around their sales force.

Consider some of the shortcomings we’ve analyzed at financial institutions in all corners of the globe:

• Key metrics such as lead generation, book development and how sales representatives are spending their time are not tracked

• Compensation models don’t incentivize the right client-facing and sales activities

• An informal hiring structure, left to sales leaders to determine the attributes of who they should hire, and how to pinpoint those attributes in candidates

Banks also need to ensure that their advisors have an in-depth understanding of their clients’ needs. Recent Accenture survey research, revealing that many financial advisors significantly overestimate the investment savvy and risk appetite of investors, indicates there is much work to do in this area. For example, our study showed that advisors are three times more likely to describe their clients as “very knowledgeable” about investing than investors themselves (42 percent vs. 12 percent, respectively)1.

Introduction

Banks are leaving 15 percent or more revenue on the table by not leveraging leading sales practices

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Getting the Basics RightTo stay competitive in the dynamic wealth management landscape, banks should improve the effectiveness of their mass affluent sales force. That means re-examining all aspects of the sales function, including recruitment, training, compensation, career advancement, metrics tracking, sales support and operations.

The need to get sales force basics right is confirmed by Accenture’s 2012 Sales Performance Optimization Study2. This benchmarking study tracked more than one hundred sales effectiveness metrics against 1,500 companies worldwide. Chief sales officers told us that their highest objective was to increase sales force effectiveness. Other top priorities, also linked to growth and effectiveness, were increasing revenues and improving up-selling and cross-selling.

Of course, geographical context will drive the decision on how to optimize the sales force. Many North American and Western European banks, facing an uncertain lending environment and compressed

Cumulative Percentage of Financial Planners

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f Tot

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ales

100%

80%

80%

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60%

40%

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20%

20%0%

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One-Fifth of Sales Reps Generate Roughly Half of Mass Market Sales

© 2013 Accenture. All rights reserved

margins from low interest rates, will increasingly rely on sales representatives to help drive more growth from the mass affluent while minimizing costs. In Hong Kong and other Asian markets, hyper-growth of the mass affluent customer base has strained the capacity of many banks’ systems and infrastructures, placing the burden on the mass affluent sales force to help capitalize on this growth while limiting revenue leakage at the same time. In Australia and Canada, a highly effective sales force can help deliver a solid return-on-investment on banks’ large-scale multi-million dollar customer relationship management (CRM) transformations.

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Growth of 15 Percent or MoreAccenture’s experience indicates that, regardless of geography, banks can achieve fifteen percent or more growth in mass affluent sales through targeted sales force improvements that we call “interventions”. Importantly, this can be achieved primarily by leveraging existing tools, technology and people.

Chief Sales Officers agree. According to Accenture’s Optimization Study, CSOs indicated that getting the basics right can be achieved without a significant information technology investment. The top sales initiatives they were planning, for example, included enhancing sales team communications, revising their sales process and modifying their compensation program.

To help achieve better results, we first identify high-impact sales activities, personality traits and behaviors that can help drive success. Next we develop a set of interventions which can be replicated throughout the mass affluent sales force network to drive growth. Many of these behaviors and attributes already reside among the top performer population – so the challenge is to scale them. Some of the most successful banks have used not only a top-down training approach, but also social and crowdsourcing principles to improve adoption of these behaviors.

These interventions are primarily focused on changing behavior and processes by leveraging existing recruitment and training methods and lead generation methods. Most banks already have many of the tools in place already. Since these interventions can generate significant uplift without major capital investment, the potential ROI could be very strong.

Expand the Ranks of Top PerformersAccenture recently analyzed sales forces across various banking and other industries worldwide. We consistently found that the top twenty percent of the sales force generates one-half to four-fifths of an organization’s revenue. Banks should change this paradigm. We believe they can do so by studying, capturing and industrializing the key attributes of these top performers so that others can join their ranks. Sales performance analytics can play a key role in identifying top performers, as well as determining key performance gaps of their average or low-performing peers.

Improving the performance of the average sales person through targeted, low-investment interventions can shift the sales curve. To illustrate this, below is a typical curve for sales representatives in a hypothetical retail bank which targets the mass affluent market, selling primarily mutual funds and some additional banking products.

Mass AffluenceSales ForceLifecycle

1. Improve:Generate High Performance

2. Retain:Sustain HighPerformanceand Retain

Talent

4. Build:Develop New

Sales Rep

3. Attract: Identify Recruit and Hire the

Right Sales Reps

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Lifecycle: Understanding your Sales Force By viewing their sales force through a continuum or “lifecycle”, banks can better assess the opportunities for making interventions. The four stages of this lifecycle are:

• Generating high performance

• Retaining talent to sustain performance

• Recruiting and hiring

• Developing new sales representatives

Our analysis will start with the bulk of the sales force – those that are fully proficient – and then review other groups such as seasoned, top performing advisors and inexperienced, new advisors. Each sales representative follows the lifecycle stages, and every sales force has representatives who are currently in each stage. Driving improvements in each lifecycle area will improve key efficiency performance indicators, such as sales per FTE.

I. Improve: Generate High Performance

Banks should rigorously examine their sales process to understand the activities and behaviors that help drive outstanding sales performance. Some attributes of the top twenty percent of a bank’s sales force, of course, can’t be replicated – they are genetic. However, the majority of these attributes can be reproduced throughout the sales force if properly captured. Based on Accenture’s experience, they include: a deep understanding of clients’ needs, the ability to match clients with appropriate products, highly effective communication skills and network building knowledge.

Generating high performance, however, requires more than individual skills. Many banks pay equal attention to key supporting roles, such as the sales manager and sales support staff. The specific interventions that drive improvements in sales effectiveness varies by organization based on the maturity of sales tools, compensation model, sales support model and other factors.

These interventions can help generate high performance:

• Develop a “behavior catalogue” outlining sales behaviors displayed by high performers for use as a training tool for average performers

• Match sales people to clients, based on mutual interests and personalities, to increase the likelihood of cementing a loyal relationship

• Analyze how salesperson spend their time; compare “sales” time versus “support” (non-client-facing time) to identify ways to improve productivity

• Leveraging sales analytics, identify personal gaps by sales person to help guide and tailor training sessions (e.g. larger focus on products where a sales person struggles to perform)

Mass Affluent Sales Force Lifecycle

© 2013 Accenture. All rights reserved

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Examples

• At a large North American bank, mass affluent sales representatives were generating only about one net-new client on average per sales representative annually. A sales force assessment revealed that sales representatives viewed themselves as “just” advisors, and not as sales people. As a result, the bank revised net-new client targets, changed its recruiting profile and modified its compensation model to encourage new client development.

• A UK-based global bank paired its top performing financial advisors with clients having the greatest likelihood of consolidating their holdings at the bank, resulting in an average sales uplift of twelve 12 percent per branch. Some flagship branches enjoyed a sales uplift of more than thirty percent.

• At a major European bank which implemented a coaching program built upon top performers’ leading practices, eighty percent of participating branches showed significant improvement within one month. These leading practices included: prioritizing leads, developing a contact schedule for clients based on their relative likelihood of buying more products, asking for a client referral at every client meeting, developing relationships with colleagues within the branch to drive referrals, designing a client contact plan utilizing multiple channels and asking for the “close” earlier in meetings.

Potential Benefit

• Improve sales close rate

• Shorten sales cycle

• Shift sales representative time to higher value activities

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II. Retain: Sustain High Performance and Retain Top Performers

Once implemented, interventions can’t simply be forgotten. Sustaining improvements and retaining top performers is critical. At the same time, sales managers’ ongoing role of monitoring, mentoring, and ultimately driving desired behaviors and activities should remain a priority, even with respect to the most proficient advisors. The growing trend of internal social collaboration can empower advisors to share best practices, encourage others and grow a sense of community. It can also create simple and effective communication channels between head office, subject matter experts and advisors to decrease advisor effort and frustration during issue resolution.

These interventions can help sustain high performance and retain top performers:

• Analyze sales representatives’ performance management and compensation models to verify they motivate desired behaviors, such as attracting new clients to the bank and growing share of wallet for existing clients

• Incent sales managers to sustain improvements through personalized coaching based on the individual advisor’s learning style

• Deploy automation, straight-through-processing and pre-filled forms to reduce administrative burdens related to booking and prepping for client meetings and originating products

• Install a “career progression model” for top sales representatives to increase retention for those that are ready for the next career step, such as moving into private banking or becoming a sales manager

Example

A European retail bank, working with Accenture, developed an innovative employee engagement model that included a simulator enabling advisors to plan their careers, a talent map that allows the bank to identify top candidates for open positions, an enhanced performance assessment process and new work-life balance options. As a result, the bank enhanced its competitiveness in the war for talent and raised employee productivity, resulting in a significant contribution to the bottom line.

Sale

s Pe

rfor

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Time

Baseline Performance

Value at Stake15% - 20% sales activitygains overbaseline on a go-forwardbasis for massaffluencereps

SalesforceEffectivenessImpact

InstitutionalizedHigh Performance

Project based

gainsnot sustained

Potential Benefit

• Increase client acquisition rate

• Increase share of wallet (percentage of client’s total assets held at the bank)

• Increase top sales representative retention rate

• Increase average revenue per sales representative

© 2013 Accenture. All rights reserved

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III. Attract: Identify, Recruit, and Hire Suitable Sales Representatives

Hiring the right candidates for sales representative sets the stage for addressing further efficiency gains in other lifecycle stages. Understanding the key attributes of high performers in the context of your firm culture forms the basis for identifying the right candidates. Once these attributes are identified and centralized firm-wide, recruiting policies and processes can be honed. Sales leadership should be represented in the development, roll-out and ongoing maintenance of the recruiting model. This recruiting model relies less on the particular recruiting skills of individual sales leaders and more on metrics.

These interventions can help improve the recruiting process:

• Create a recruiting profile reflecting the attributes of the top performers

• Develop a strong pipeline of potential candidates both within and outside the bank to supplement the role of the human resources department in recruiting new representatives

• Include top performers in the recruiting process

Attribute Analysis of Mid- and Top-Tier Performers

Mid Performer Attributes

•More readily attribute chance or external circumstances as key factors behind success or failures

• Concerned with being perceived as likeable

• Unaware of performance shortcomings and not interested in improving

• More rigid, less personalized in their approach

Top Performer Attributes

• Confident they will succeed in the tasks they undertake and have a strong drive to achieve

• More risk-taking

• Believe effort, rather than luck, will result in success

• More curious and interested in learning about prospects; high energy, endurance and persistence

• Highly adaptive and enjoy the unpredictable nature of each customer

Example

Accenture conducted an analysis of the attributes of a North American bank’s mass affluent sales force to determine key differences between mid- and top-tier performers (see chart).

Potential Benefit

• Decrease time-to-proficiency

• Improve new representative retention

• Decrease recruiting costs

© 2013 Accenture. All rights reserved

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IV. Build: Develop New Sales Representatives

After hiring a sales representative, many banks struggle with the next critical step: on-boarding and bringing the representative to proficiency. The difference in value to the bank of a new sales representative who is unfamiliar with sales tools and processes, compared with a proficient advisor can be millions of dollars in lost revenue annually. Accenture research shows that average time-to-proficiency can be up to one year, with a new sales person generating only about sixty percent of what an experienced representative brings in. Achieving a shorter time-to-proficiency requires innovative learning tools, reinforcement, hands-on coaching, formalized processes and consistent support from sales managers.

These interventions can help the development of new sales representatives:

• Create a sales force effectiveness department to act as a center of excellence and drive ongoing improvements

• Develop a centralized onboarding team within the sales force effectiveness department

• Provide customized, one-on-one coaching by sales managers and supporting management team through joint client sessions and real-time feedback

• Use multiple delivery methods to provide a rich, blended learning environment that addresses key capability gaps; for example, offer game-based learning solutions, video-cast refreshers and thought leadership web links

Job aids Instructor ledbusiness games

Instructor ledvirtual learning& collaboration

Expert’s directory

Ask anexpert

Education Podcasts/Videos/

Simulations

Wiki /Collaboration

Formal Learning

Informal Learning

Examples

• Accenture helped a global bank redesign its on-boarding and entry level learning process, resulting in a significant improvement in time-to-proficiency, reduction of class room time by three weeks and a two-thirds decline in training costs for new hires. The redesign included formalized training schedules, individualized learning based on trainees’ backgrounds and practicing newly learned skills.

• At a global wealth provider, Accenture revamped the development process, facilitating wealth advisors to decrease time-to-proficiency and grow their portfolios by creating effective contact plans. This effort leveraged a wide range of learning tools beyond traditional computer-based training (see chart below), establishing top performers to achieve new peak productivity levels and earn higher average compensation.

Potential Benefit

• Decrease training costs by reducing average number of training days per salesperson

• Faster time-to-proficiency

© 2013 Accenture. All rights reserved

ConclusionBank sales executives should leverage opportunities to improve the effectiveness of their sales force at every phase of the lifecycle, from recruiting and developing new sales representatives, to generating and sustaining high performance. The potential payoff can be huge.

In this paper, we have presented several interventions that have yielded impressive results at a variety of financial institutions worldwide. Yet, there is no single right answer for any bank. Each bank should undertake a robust, in-depth analysis of its mass affluent sales force as a first step to achieving these kinds of outcomes.

That analysis, in turn, will facilitate identification and prioritization of low- investment, high-return interventions. It will also highlight other areas of the ecosystem in need of improvement – such as sales strategy, CRM tools, branch director training, commercial governance, back office processes and operating model – that impact sales representatives’ effectiveness.

Without a doubt, sales force effectiveness is a vehicle to help drive growth. The key is to understand and unlock the potential value that already exists within your sales force.

Increased Sales

Reduce Sales Operation Costs

Increase New Sales Rep Retention Rate

Increase Top Sales Rep Retention Rate

Reduce Complexity

Decrease Recruiting & Training Costs

Decrease Time to Proficiency

Improved Close Rate

Shorter Sales Cycle

Shift time to higher value activities

Increase Client Acquisition Rate

Increase Share of Wallet

Increase Average Revenue per Proficient Rep

Sales Force Effectiveness Effort Value

Sales Force Effectiveness: Potential Value

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© 2013 Accenture. All rights reserved

About AccentureAccenture is a global management consulting, technology services and outsourcing company, with more than 336,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

ACC13-2606U/11-6972

ContactFor more information, please contact:

USA Jamie Breen jamie.breen@accenture.com

Canada Berkeley Warburton berkeley.warburton@accenture.com

Europe Stefano Trombetta stefano.trombetta@accenture.com

Australia, New Zealand and Asia Ian Webster i.webster@accenture.com

ContributorsShannon Hamilton and Hilary Watson

References1 How Tech-Savvy Advisors Regain Gen D

Investor Trust: http://www.accenture.com/us-en/Pages/insight-how-tech-savvy-advisors-regain-trust-gen-d-investors-summary.aspx

2 2012 Sales Performance Optimization Study: http://www.accenture.com/us-en/Pages/insight-connecting-dots-sales-performance.aspx

Copyright © 2015 Accenture All rights reserved.

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This document is produced by consultants at Accenture as general guidance. It is not intended to provide specific advice on your circumstances. If you require advice or further details on any matters referred to, please contact your Accenture representative.