1. © 2015 Information Services Group, Inc. All Rights Reserved.

2. © 2015 Information Services Group, Inc. All Rights Reserved.
How Advisor Relations Programs are Changing to Increase Engagement
Evolve or Perish:
Paul Reynolds

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Agenda
o Research methodology & demographics
o Expectations of the third-party advisory channel
o Advisor relations activities and expectations
o Advisor relations team size trends
o Advisor relations budget trends
o Awareness Framework
o Market trends and takeaways

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Survey methodology
Who Advisor Relations professionals
What 15-minute online survey
When Completed in August 2015
Why Internal planning
Results 79 completed interviews across 48
different companies, ~30% response rate

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Advisor Relations professionals are
pulled in multiple directions
Percent of Advisor
Relations with other
responsibilities
55% 35% 25%
Global
Leads
Regional
Leads
Team
Members

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Advisor Relations professionals are
pulled in multiple directions
Percent of time they
spend doing their
“other job” 45%
54%
18%
Global
Leads
Regional
Leads
Team
Members

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Time spent on Advisor Relations activities
o External Advisor Management
o Meet with advisors to build relationships
o Make intros between advisors and stakeholders
o Attend formal workshops, briefings, advisor events
o Attend conferences, advisor days, client events
o Internal Team Management
o Work with pursuit teams on opportunities
o Meet with internal salespeople
o Report and manage expectations internally
o Internal Program Management
o Respond to advisor requests
o Execute programs (e.g. advisor days, education)
43%
38%
20%
16%
10%
10%
6%
16%
11%
10%
10%
10%

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Measurement
Average Number
of Metrics
Global
Leads
Regional
Leads
Team
Members
3.3 2.9 2.6
Primary
Success Metric Win $ Invites
$ & #
Invites
$

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Top success metrics for Advisor Relations
Dollar Value of Sales Won
Dollar Value of Invitations
Number of Invitations
66%
47%
45%
47%
65%
65%
45%
55%
45%
Global
Leads
Regional
Leads
Team
Members

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Market Segments
Large
Western
Heritage
Large
Indian
Heritage
Small
Western
Heritage
Small Indian
Heritage

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Goals are both
the same
and different.
Every provider has two primary goals
when engaging with ISG:
1. to increase its pipeline
2. to improve its winning percentage.
Yet the scale of those expectations
differs dramatically…

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TPA Channel Expectations
Average Channel
Expectation
Expectation
range
ISG
Representation
ISG Range
Expect increased
ISG pipeline in
2016
$7.4B
.
$100M -
$25B+
18%
.
5% - 30%
43%
Large Western
Heritage
$45M
.
$5M -
$100M
31%
.
1% - 100%
56%
Small Western
Heritage
$6.2B
.
$3.5B -
$10B
37%
.
30% - 50%
86%
Large Indian
Heritage
$165M
.
$11M -
$500M
23%
.
5% - 100%
54%
Small Indian
Heritage

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Teams are growing to achieve expectations
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

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Variances in 2016 Advisor Relations team size
Large Western
Heritage
Small Western
Heritage
Large Indian
Heritage
Small Indian
Heritage
1.0
10.0
1.0
5.0 5.0
12.0
1.0
7.0
Min Avg Max
4.9
2.0
8.8
3.3

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Growth in global Advisor Relations team size
Large Western
Heritage
Small Western
Heritage
Large Indian
Heritage
Small Indian
Heritage
+40% +15% +33% +47%
Growth is from 2015 to 2016.
35% 44%
of companies will
expand their
Advisor Relations
teams in 2016
is the average
growth among
those that will
expand
+69% +67% +10% +34%
% Will Grow
% Growth

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Expansion by company type
Americas EMEA AP Global
Large Western 0.8 1.0 - 1.8
Small Western 0.5 0.5 - 1.0
Large Indian 0.5 0.5 - 1.0
Small Indian 0.8 0.1 0.3 1.1

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Expansion by geography
0.7
0.4
0.1
USA
UK &
Ireland
India
Generally, companies look to invest in the countries
where they already have a presence.

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External spending on Advisor Relations
Large Western
Heritage
Small Western
Heritage
Large Indian
Heritage
Small Indian
Heritage
$582K $158K $813K $383K
$395k
Average external spend
on Advisor Relations
Programs in 2015
43%
57%
66%
34%
0%
100%
34%
66%
Average
Spending
Below $100K
Above $100K

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How budgets are allocated
o Advisor interaction (education, events, conferences) 39%
o Databases/ Market Data/ Research Subscription (Momentum) 36%
o Attendance at industry conferences (IAOP, SIG) 7%
o Sales Support and Training (methodology training) 6%
o Industry awards, reprint rights to published reports 4%
o Sponsorship of TPA sponsored client facing events 3%
o Custom research project 3%
o Others 2%

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Expected increases in external spending
Large Western
Heritage
Small Western
Heritage
Large Indian
Heritage
Small Indian
Heritage
27% 62% 67% 54%
Growth is from 2015 to 2016
54%of companies will increase their
external Advisor Relations
spending in 2016
+18% +22% +19% +21%
% Will
Increase
Average
Increase

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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.”

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Comparison findings for Americas infrastructure
85%
31
16
76
Understanding
58%
15
6
54
Trust
99%
93
56
36
Awareness
23%
20
4 1
Advocacy
Large US firms
Large Indian
Small US firms
Small Indian
Source: ISG Service Provider Awareness Research 2015, Americas Infrastructure

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Market Trends…
o Advisor Relations team sizes are
growing
o External spend with third-party
advisors is increasing
o Providers have high expectations
from the third-party advisory
channel
o Providers are increasingly looking
for more from the ISG channel
ISG Advisor Community
Your
Company
Company
Company
Company
Company
Company
Company
Company
Company
Company
Company
CompanyCompany
Company Company
Company
Implications

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MarketingSales
Advisor Relations is a combination of…
&
80% of sales
are made on
the 5th to 12th
contact.

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The rule of seven simply says…
The prospective buyer should
hear or see the marketing message
at least seven times before they buy it
from you.
http://www.tutorialspoint.com/management_concepts/the_rule_of_seven.htm

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Rule of Seven, Summarized & Tailored…
o You need to let the influencer
hear and see your marketing
message many times before
they make a recommendation.
o There are many reasons for the
need of repetition. Influencers
just can't trust you and make
the recommendation the first
time you show your message.
http://www.tutorialspoint.com/management_concepts/the_rule_of_seven.htm
o So, this simply means that your
marketing effort should be
repetitive and consistent.
o You cannot just educate them
one time and expect a
recommendation.
o The hidden message of rule of
seven is the continuous and
repetitive effort that should be
put in.

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So how do you make your message stand out?
The Psychology of Storytelling, Gregory Ciotti
“Those in sales and
marketing have known
for a long time that
stories trump
data when it comes to
persuasion
because stories are
easier to understand
and relate to.”
“When facts and information are
framed by a compelling story,
you'll not only hold the attention of
your audience, but you'll also
make the information presented
more memorable… No matter
how compelling your facts are, if
your audience isn't invested in
what you're saying, all the
information will be lost on them.”

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In the ever-evolving marketplace,
o Advisor relations teams are growing.
o Providers are increasing their spending levels with third-party advisors.
o Expectations of the third-party advisory channel are higher than ever.
Advisor Relations teams need to leverage data to help prioritize where to invest energy.
Service providers need to
o Ensure their message is heard
o Use a programmatic approach to engage with third-party advisors
“Trust … is built and maintained by many small actions over time.”
o Identify their true differentiation
o Make a memorable impression

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