Prospecting With The 5500 – Planing your First Meeting
February 25, 2019

Using 5500 Data for Offensive and Defense Business Development (Part 4): Planning the First Meeting

Meeting with a potential lead is the first big step in winning their business. While personal preference determines the style of your pitch, it is always a good idea to back your pitch with data. Additionally, being able to tailor your pitch to each lead, quickly, is invaluable.

It is also a good idea to present your pitch using multiple modes of communication. While you are going to be speaking your potential clients, remember that not everybody learns or retains information the sale way. For instance, while listening to a speaker may help some, others are more visual learners and react better to charts and graphs. Still others prefer to read the material to listening to a speaker.

It’s a good idea to plan on presenting your pitch to a lead using multiple modes of communication. That way,

PLAN REPORTS

When discussing the future of a lead’s retirement plan, it is often helpful to be able to talk confidently and clearly about the plan’s past. Building a detailed history of a plan will help you show negative trends to a client; trends that you would be able to avoid.

CHARTS AND GRAPHS

Some people learn by reading the material, others, by hearing it. Still, other people best consume data by seeing it. It is important
to provide your lead with the same data in multiple ways. This increases the impact of your presentation and makes complex information more easily understood by your potential clients.

THE VERBAL PITCH

Sometimes even the most seasoned salesperson may forget the importance of their verbal pitch. And there are times that new financial advisors may need a little guidance or inspiration in how to start a pitch. While your verbal pitch should reinforce the visuals of your graphs and the data-heavy details of your reports, it should not be a recitation of these facts. This is where an advisor can reveal how they are able to solve the challenges unique to the sponsor.

THE JDA ADVANTAGE: Our tools are designed to help make your presentation shine. Our Dynamic Plan reports consolidate all our research on a plan into one modular, presentation-ready document. Have all the specific details about a lead’s current plan neatly organized and right at your fingertips.
The performance-based Benchmarking tool in our Prospector Plus creates downloadable professional-looking graphs and charts. By inserting these into your sales deck or pitchbook, you will be able to walk your clients through all the reasons why they would be better off working with you.Need some inspiration? Prospector Plus’s talking points help walk you through a plan’s weak spots. They also suggest different approaches to help your leads understand the challenges their plan contains.

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Prospecting the Federal Form 5500 – The Offensive Approach
February 18, 2019

Using 5500 Data for Offensive and Defense Business Development (Part 3): The Offensive Approach

The most common, and effective, way to use Retirement Plan Prospector is offensively. The size of the data pool contained in the data set not only provides brokers with a massive lead list but also provides details required to make a data-driven business development plan work.

IDENTIFY THE BEST TARGETS

While looking for red flags and plan scores are a great way to begin identifying the leads with the highest chance of conversion, that is just the beginning. If you know of a competitor’s offering that you outperform, locating the plans they manage is a great way to focus your efforts.

THE UNSATISFIED/VERY SATISFIED CLIENTS

Retirement Plan Prospector has data on plans stretching back nearly 10 years. This history can show sponsors who frequently change their financial advisors. Noticing that a sponsor changes their FA every couple of years might indicate that they are likely to reevaluate their current plans. However, such a sponsor might be hard to retain. On the other hand, you could identify sponsors who tend to pick and advisor and stick with them. These leads might be more difficult to win but are likely to stick with you once you have won their business.

THE BOOK OF BUSINESS COMPARISON

Plan scores look at the relative strength of a plan. By collecting the plan scores of all the plans in your book of business, you can come up with an average plan score for your clients. Comparing a lead’s low plan score to your “book of business score” is a great use of plan scores. Such a comparison is a data-driven reason for the sponsor to consider having you perform the same great work you did for your other clients.

THE JDA ADVANTAGE: With our monthly updates, you will always have the most recent data available. Quickly knowing that a plan is in trouble, and who to reach out to will give you a better chance of locating a floundering plan before its advisor is aware something is wrong.

Posted in: Blog
Prospecting the Federal Form 5500 – Finding Your Target
January 14, 2019

Using 5500 Data for Offensive and Defense Business Development (Part 2): Finding Your Target

Now that the east coast is covered in snow, it’s the perfect time to continue my series on Prospecting the Federal Form 5500, this time focusing on how to find the targets you identified in the first post of this series.

With hundreds of thousands of plans out there, it can be hard to find those plans that are right for you to reach out to. Instead of spending time, effort, and even money contacting leads with little chance of conversation, you need to focus your attention on leads that would be more receptive to your approach.

WHAT ARE RED FLAGS?

Red flags are a series of indicators the experts at Judy Diamond Associates identified to aid in locating “in trouble” plans. These red flags not only identify a potential issue in a plan, they also act as tags which can be searched for. Which 19 separate Red Flags to choose from, it is easy to tailor one’s research. Included in our red flags are:

  • High Average Account Balance
  • Corrective Distribution Issued
  • Insufficient Fidelity Bond Coverage
  • Highest Admin Fees

For more on our red flags, check out Michael Iapalucci’s outstanding new series focusing on our Judy Diamond Associate’s red flags.

PLAN SCORES

Knowing how a plan stacks up against other plans in a state or industry can be critical in identifying trends in your market. Therefore, having access to tools that quickly aid in plan comparison is a must! Plan scores provide you with seven metrics by which a plan can be compared to other plans. Additionally, JDA includes an overall umbrella score for a more high-level analysis. These scores help you understand the landscape around the plan so that you are better able to develop your pitch, or guide your business development efforts.

ADVANCED SEARCH

Now that you know what your current clients look like, you can use the advanced search feature to find other companies that match! This may seem a challenge since there are over 450 fields of data in a 5500 form. There are many options including Participant or Asset Total, to specific Red Flags, to Broker or Vendor Names. However, the advanced search box allows you to quickly narrow the field of leads from hundreds of thousands to a more manageable number of perfect leads.

PERFORMANCE BENCHMARKING

Knowing how a plan performs against other plans very helpful. It is a good idea to research a plan to determine if they really are a good lead for you. Performance-based benchmarking is a great way to accomplish this. Identifying a plan that historically underperforms plans in your region or your own book of business helps you focus your attention.

 

THE JDA ADVANTAGE:

These are just a few of the tools within Retirement Plan Prospector Prospector Plus tool designed to bring the experience of the JDA Team to your office. These tools are easy to learn, quick to use, and, most importantly, they provide results. There is a reason our clients stay with us year after year.

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Prospecting the Federal Form 5500 – Identifying your Client
December 17, 2018

Using 5500 Data for Offensive and Defense Business Development (Part 1)

This article is the first in a five-part series devoted to helping you more effectively use the 5500 for prospecting. By the end of this series, you will learn:

  • Steps to locate viable new business
  • Defense strategies for your book of business
  • How to approach your first meeting with a potential client

Identify your Clients

There are over 1 million ERISA qualified plans active nationwide each year. Nearly 800,000 plans in the retirement space alone. Finding the plans that fit well into your business model can seem like a daunting task. The first step in business development is often research. Here are 3 questions to ask yourself:

Who Are My Current Clients?

Knowing who you currently work with is a great indicator of where you should be looking for new business. Consequently, as no one knows your client’s as well as you, it is always a good idea to dig deeper and see if there are unifying traits that you may not be aware of. The 5500 form provides a ton of information that, when analyzed, can reveal trends and traits that may not have been uncovered by your face-to-face interactions.

What Are My Strengths?

Properly identifying your skill set is imperative when planning your prospecting. Perhaps you are a good educator and skilled at letting employees know the value of their plan. Maybe you are a data wonk and are skilled at identifying trends in large pools of data. You may have spent years in the 401(k) market and are known in your region for strong 401(k) performance.

Who Looks Like My Current Customers?

A good place to start are those categories of sponsors that are similar to what you work with and blend well with your strengths. Therefore, if you can find sponsors who resemble your client base, sponsors that also may have an unhealthy plan, you have yourself a beginning of a great lead list.

THE JDA ADVANTAGE:

The Retirement Plan Prospector database was designed not only as a lead generation service but as a tool to help you identify trends in large datasets.

 

Find the second post in this series Here!

Posted in: Blog