Be Your Brand

Having a brand that is easily and instantly recognized is one of the key success factors for top companies. If you think of the word “safety,” for example, which car company comes to mind? Most people would say Volvo. The iconic carmaker has spent years and considerable resources building its brand and making the company synonymous with a highly desirable feature for luxury cars. 



The same principle applies to advisors in the DC marketplace. Research shows that DC advisors who build and represent a consistent brand to plan sponsors and participants are able to build larger and more profitable retirement plan practices. 



So how can a DC advisor build and maintain a brand? Chatham Partners, an independent research firm, recently surveyed more than 400 DC advisors and interviewed 64 DC industry executives to gain their insights. Their research suggests that building a brand is about synchronizing the characteristics of the advisor’s practice, the services he or she offers and the value delivered. 



Here’s a simple example. Consider an advisor who focused his practice on retirement plans for dentists. The advisor built his business one dentist at a time. After a few years, he had dozens of plans and knew everything about the dental business and the challenges dentists face. The advisor became the “dental advisor” and was referred all the business his practice could handle. He succeeded because of the alignment of three key factors: the characteristics of the practice, who the practice serves, and the resulting value delivered.



While this example demonstrates the power of focus, differentiation and internal assessment, advisors do not have to go it alone to develop those characteristics. For example, consider the advisor who uses a target date evaluation tool provided by a DCIO firm. The advisor evaluated all the plans in the area over $5 MM. She then prospected C-suite executive, presenting the results of her analysis and suggesting alternatives. As a result, the advisor won numerous new mandates. Finding success in using the tool for prospecting, she made it part of the ongoing service to all of the plans that her practice serves. 



This is a great example of leveraging one of the many value-added programs that are available to advisors. Like the firms that offer them, many advisors use value-added programs to create awareness, to differentiate, and to grow their practices. In fact, Chatham’s research demonstrates that many of the elite DC advisors are using thought leadership provided by DCIOs and record keepers to help add value for their clients. These advisors use the material as a source of idea generation that they can adopt and transform as their own to help them stand out from the crowd.



So how do you get started building your brand as a DC advisor? Here are the six steps to success:



1. Define your value proposition.

2. Highlight the qualities that differentiate your practice.

3. Be consistent.

4. Be patient.

5. Leverage your DCIO and record keeping partners and their value-added programs.

6. Be yourself.



Remember that creating a brand for your DC practice does not happen overnight. It takes time and develops as your practice does — in the same way that the Volvo brand took years to build.



Bruce D. Harrington is a retirement industry veteran who has held executive level positions at both broker-dealers and investment management firms.