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Value Added Programs - A Service Not a Product

By Conrad

Some firms' value added programs bring in millions of dollars. Understandably, these firms make such programs a major part of their distribution strategy. But what is the difference between a successful program and a mediocre one? In her April 6th post, Johanna hit on a very important issue: firms need to make sure that their programs address issues that are high up on key distribution partners' lists. Once a program is created, however, success hinges on sound execution. There are a number of things that firms can do to better execute on their value added programs, including two simple but often overlooked items:

• More training - A 30-minute training session at a quarterly sales meeting is not enough to teach wholesalers the best way to deliver the program. Even the most well-designed program won't reach its full potential if the wholesaler presenting it can't do so in the right way.

  The training needs to ensure that wholesalers are equipped not only to easily identify advisors who would benefit from a given program, but also to effectively deliver the program in different settings. They need to know how to deliver it to branch managers, groups of advisors, or individuals, given 30 seconds or 30 minutes. To enhance the training effectiveness, firms could incorporate advisors and branch managers to lend their perspective to how the VAP should be framed. Regardless, one training session is not enough - training must be reinforced by both Marketing and sales managers. Additionally, firms could offer online training (such as Brainshark presentations) as a follow-up.




• Implementation help - The program will only be effective if advisors are actually using it, so firms need to support the implementation. While the program itself needs to have clear action steps, wholesalers should go beyond just delivering the content to help advisors to implement it. This support starts with some additional tips and tricks, but could also include more intense handholding, such as sending out calendar reminders for the advisor. Even if firms do not want to go that far, they should at least have an internal wholesaler follow up to gather feedback and to help with the implementation.

By following these two guidelines, firms will increase the likelihood that all the money they spend on creating these programs will actually pay off.