ENHANCE YOUR BUSINESS

Total CX Insights for your business

This quarter, we bring you key learnings from top financial professionals on effective team building and succession preparation.

How we get our data

Invesco Total CX – the Total Client Experience – is a powerful platform of tools and resources designed to help financial professionals achieve greater possibilities for their clients, businesses, and portfolios. Through September 2023, we've helped more than 2,000 financial professionals benchmark their practices with the Practice Innovation Index, a diagnostic assessment focusing on four areas: New Business Development, Wealth Management, Client Service, and Practice Management.¹

Building a sustainable practice and transitioning leadership

The latest Total CX Insights, created in partnership with Cerulli Associates, outlines your peers’ experiences in an effort to help you talent-proof your practice and plan for the future. We believe that wealth management teams need to better address the challenge of recruiting wealth managers, outlining their responsibilities, and empowering them to one day take over.

  • How are wealth management practices structured?

    According to Practice Innovation Index data, more than half of respondents operate in a team-based structure, including the largest and most productive practices. Teaming has helped these practices specialize and scale up their capabilities, better positioning them to grow assets and deepen wallet share.

  • When do wealth managers plan to retire?

    Wealth managers approaching retirement, in our view, need to consider whether they want to exit the business via an external sale, by joining forces with another practice, or by training an internal successor. The answer will likely impact the planning, execution, and timeline of an eventual succession plan.

  • Transcript

    Lisa Kueng

    I'm Lisa Kueng, Managing Director of Business Development for Invesco Global Consulting, and I'm privileged today to share the latest Total Client Experience insights. This time, we're focusing on building a sustainable practice.

    Our data shows that more than a third of financial professional’s plan to retire, or at least take a significant step back from daily operations over the next decade.1 Paul Brunswick, Head of Invesco Global Consulting, is going to dive deeper into these actionable solutions.

    Paul Brunswick

    Thanks, Lisa. Well, before a financial professional approaches retirement, we believe they should consider developing their practice through effective teaming. Our latest research also shows that 89% of practices with greater than 500 million in AUM operate in a team-based structure.2

    As a growing number of financial professionals approach retirement, they see the benefits of joining forces to create capacity and position themselves for long term growth through teaming. Teams ultimately provide a wider range of services to clients while creating career paths for internal successors. The key here is identifying those internal successors sooner rather than later. Why? Because integrating a successor on a team early helps not only to ensure a smooth transition but mitigates client flight risk when the lead financial professional retires.

    According to our latest research, 47% of respondents indicated that roles and responsibilities in their practice are well-defined. Of those who are on teams, the average practice headcount is between five and six team members.2

    A well-defined team creates continuity, client trust, and efficiency. Invesco believes practice leaders should openly discuss expectations with their team and align skill sets with the appropriate function.

    Our final topic is preparing to transition your practice. Financial professionals know the importance of planning for a successor, but what holds them back? The emotional aspect. Matter of fact, our data indicates that 73% of respondents view emotional aspects of transferring clients to a new financial professional as a hurdle.3

    This is followed by finding a qualified buyer with 59% of respondents reporting it as a succession challenge. The third is transferring clients to the buyer, which represents 50% of respondents.3

    Invesco believes, however, that no matter if you are buying or selling a practice, that there are four critical variables that determine success or failure of your succession plan. The right time, the right reason, the right person, and the right communication. To help you in preparing to transition your practice, we offer a program called “Changing the Guard” that includes five steps to successfully transition your practice. Contact your senior Advisor consultant to learn more.

    Lisa Kueng

    All of these insights were brought to you by Invesco Total CX, the Total Client Experience. Which is a powerful platform of tools, coaching, and content.

    The ”Practice Innovation Index” program is based on Invesco Global Consulting’s work with Cerulli Associates. Invesco Distributors, Inc. is not affiliated with Cerulli Associates or Cerulli, Inc. The Cerulli Associates logo is used with permission.

    Invesco Global Consulting programs are for illustrative, informational and educational purposes. We make no guarantee that participation in any programs or utilization of their content will result in increased business for any financial professional.

    This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

    We’ve helped more than 2,000 financial professionals to benchmark their practices with the Practice Innovation Index (07/13/2021-09/15/2023).

    There is no guarantee that any stated outlooks will come to pass.

    The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

    Cerulli Associates utilizes the term “advisor(s)” instead of “financial professional(s).”

    All data created by Invesco Global Consulting unless otherwise noted.

    Note: Not all products, materials or services available at all firms. Financial professionals should contact their home offices.

    1Sources: Cerulli Associates, Investment Company Institute, Insured Retirement Institute, Morningstar Direct/ AnnuityIntelligence, Investment News, Judy Diamond, Department of Labor, PLANSPONSOR, S&P Capital IQ MMD, Financial Planning, Financial Advisor magazine, and Investment Advisor magazine | Analyst Note: Cerulli's projections for advisor headcounts and advisor assets are based on both the historical movement of advisors between channels and stated channel preferences of advisors for future affiliation. In addition, Cerulli accounts for retiring advisors, trainees, and one-time occurrences such as layoffs and announced hiring plans.

    2Sources: Practice Innovation Index diagnostic survey results of 1,043 participants, 7/13/2021-12/31/2022; Invesco and Cerulli Associates.

    3Source: The Cerulli Report --U.S. Advisor Metrics 2022

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    October 2023 Summary

    Teaming may help build a sustainable practice by focusing complementary skills toward a common goal. Effective integration can potentially lay the foundation for a smooth transition from wealth manager to successor. Learn the main factors that can determine your success.

Access previous reports

Take a look back through previous Total CX insight articles and download recent reports. 

Transcript: Total Client Experience May 2023 Insights Summary

We are excited to introduce the new Total CX Insights for your business.

Invesco Total CX – the Total Client Experience – is a powerful platform of tools, coaching and content. As part of that platform, we’ve helped more than 1,000 financial professionals to benchmark their practices with the Practice Innovation Index.1

The latest report2 evaluates your peers’ experiences using the Practice Innovation Index results to help you drive efficiency in your practice. We focus this quarter’s research in four primary areas: boosting productivity, maximizing time with clients, optimizing coverage ratios, and client touchpoints.

We strongly believe that high productivity can be directly attributed to thoughtful segmentation and client prioritization. In fact, the results show that almost half of respondents have implemented a customized client service model based on platinum, gold, and silver segmentation.3 Bottom line, an effective segmentation strategy will help practices not only determine how they allocate their limited time, but it also creates capacity across their growing business.

As we looked at insights around maximizing time with clients, the research indicated that wealth managers spend most of their time on client facing activities with client meetings, accounting for 21%.4 We strongly believe that by leveraging technology, wealth management practices can create automated workflows to streamline standard client service processes and communication.

This will ultimately reduce the administrative burden on senior team members, and in the end free up more time for important client- facing activities.

The numbers we saw in the research were that across all practices in the industry, senior financial professionals manage, on average, 161 client relationships.4 The takeaway here is that even though best practices on optimal client coverage are always relative, wealth managers should be mindful not to diminish client engagement or exceed their staff capacity. To strike this balance, we believe teams can establish defined segments that factor in the complexities and the needs of individual clients.

The data showed us that nearly one third, specifically, 32% of respondents who managed greater than a billion dollars in assets, utilize a pod-based approach to meet with clients. In addition, the research indicated that they meet with clients at least 11 times per year.5 Why? Because many clients will opt for a mix of both virtual and in- person meetings going forward.

Stay tuned in the quarters to come as we deliver new Total CX Insights for your business and if you haven’t already, benchmark your practice today with the Practice Innovation Index.

Not a Deposit | Not FDIC Insured | Not Guaranteed by the Bank | May Lose Value | Not Insured by any Federal Government Agency

1
1,043 participants, 7/13/2021-12/30/2022

2
"Enhancing Client Relationships and Capacity to Drive Growth" (IGC-PII-QTR-BRO-2-E)

3
Source: Practice Innovation Index diagnostic survey results of 1,043 participants, 7/13/2021-12/30/2022.

(Nearly half (48%) of Practice Innovation Index respondents have implemented a customized client service model based on platinum, gold, and silver segmentation.)

4Sources: The Cerulli Report—U.S. Advisor Metrics 2021, Cerulli Associates, in partnership with the

Investments & Wealth Institute and the Financial Planning Association® (FPA®).

5
Source: Practice Innovation Index diagnostic survey results of 1,043 participants, 7/13/2021-12/30/2022.

The ”Practice Innovation Index” program is based on Invesco Global Consulting’s work with Cerulli Associates. Invesco Distributors, Inc. is not affiliated with Cerulli Associates or Cerulli, Inc. The Cerulli Associates logo is used with permission.

Invesco Global Consulting programs are for illustrative, informational and educational purposes. We make no guarantee that participation in any programs or utilization of their content will result in increased business for any financial professional.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

Cerulli Associates utilizes the term “advisor(s)” instead of “financial professional(s).” All data created by Invesco Global Consulting unless otherwise noted.

Note: Not all products, materials or services available at all firms. Financial professionals should contact their home offices.

invesco.com/ic Invesco Distributors, Inc. IGC-PIITCX-VIDTS-1 04/23 ©2023 Invesco Ltd. All rights reserved. NA2853843

20230424-2853843-NA 

1 - 1,043 participants, 7/13/2021-12/30/2022

2 -"Enhancing Client Relationships and Capacity to Drive Growth" (IGC-PII-QTR-BRO-2-E)

3 - Source: Practice Innovation Index diagnostic survey results of 1,043 participants, 7/13/2021-12/30/2022.

(Nearly half (48%) of Practice Innovation Index respondents have implemented a customized client service model based on platinum, gold, and silver segmentation.)

4Sources: The Cerulli Report—U.S. Advisor Metrics 2021, Cerulli Associates, in partnership with the

Investments & Wealth Institute and the Financial Planning Association® (FPA®).

5
Source: Practice Innovation Index diagnostic survey results of 1,043 participants, 7/13/2021-12/30/2022.

The ”Practice Innovation Index” program is based on Invesco Global Consulting’s work with Cerulli Associates. Invesco Distributors, Inc. is not affiliated with Cerulli Associates or Cerulli, Inc. The Cerulli Associates logo is used with permission.

Invesco Global Consulting programs are for illustrative, informational and educational purposes. We make no guarantee that participation in any programs or utilization of their content will result in increased business for any financial professional.

This does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial professional before making any investment decisions.

The opinions expressed are those of the author and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.

Cerulli Associates utilizes the term “advisor(s)” instead of “financial professional(s).” All data created by Invesco Global Consulting unless otherwise noted.

Note: Not all products, materials or services available at all firms. Financial professionals should contact their home offices.

invesco.com/ic Invesco Distributors, Inc. IGC-PIITCX-VIDTS-1 04/23 ©2023 Invesco Ltd. All rights reserved. NA2853843 

May 2023 summary

The Total CX Insights video is an overview of the May 2023 Report results of the Practice Innovation Index. It touches on four primary areas: boosting productivity, maximizing time with clients, optimizing coverage ratios, and client touchpoints.

Download
  • Client Service
    A%20person%20giving%20a%20presentation
    Client Service

    Boosting Productivity

    Financial professionals can use a segmented approach to client service with the goal of creating capacity and prioritizing their most valuable client relationships.

    March 20, 2023
  • Client Service
    Three%20people%20having%20a%20conversation
    Client Service

    Maximizing time with clients

    Focusing wealth managers’ time on high-impact client-facing activities and redistributing other responsibilities may help fuel growth.

    March 20, 2023
  • Client Service
    People%20greeting%20each%20other
    Client Service

    Optimizing coverage ratios

    Serving a limited number of clients may help enrich client experiences, improve business efficiencies, and promote growth opportunities.

    March 20, 2023
  • Client Service
    Woman%20speaking%20on%20the%20phone
    Client Service

    Balancing client touchpoint quality and quantity

    A proactive client engagement strategy, implemented effectively, may help grow a practice's capacity and improve the quality of their client service.

    March 20, 2023
P.I index insights

Benchmark your practice Practice Innovation Index

The Practice Innovation Index – powered by Invesco and Cerulli Associates – is the first diagnostic2 to analyze peer ranking and provide custom resources designed to help in every area of your practice.

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Get the full report

This report leverages insights from practices that participated in the Practice Innovation Index 7/13/2021-12/31/2022 as well as Cerulli’s broader research findings throughout 2022. See how top practices are building a successful team and planning for a succession.

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